India and The Netherlands have forged robust diplomatic and economic bonds since initiating relations in 1947. Among European nations, The Netherlands ranks prominently as one of India’s key trading allies and significantly contributes to India's economic landscape as a major investor, with substantial foreign direct investment (FDI) inflows. Notably, India received approximately US$5 billion in FDI from the Netherlands during the last fiscal year, marking a notable increase from US$2.6 billion in 2022-23.
Commerce ministry data, as reported in various media outlets, underscores the Netherlands' growing importance as India’s third-largest export destination during the 2023-24 period, following the US and UAE. This feat is particularly notable given the slight downturn in India's overall merchandise shipments by over 3%. Key commodities that experienced robust export growth to The Netherlands in the past fiscal year include petroleum products, electrical goods, chemicals, and pharmaceuticals.
India's trade surplus with The Netherlands expanded to US$17.4 billion in the last fiscal year, up from US$13 billion in 2022-23. Surpassing major trade hubs like the UK, Hong Kong, Bangladesh, and Germany, the Netherlands has solidified its position as a pivotal partner in India's trade ecosystem.
The data highlights a steady increase in India's exports to the Netherlands, reaching US$22.36 billion in 2023-24 compared to US$21.61 billion in the previous fiscal year. This growth trajectory is remarkable when considering the historical context; exports to the Netherlands have consistently surged since 2000-01 when they amounted to a mere US$880 million.
Moreover, the Netherlands ascended to the fifth-largest destination for Indian exports in 2021-22, a significant leap from its ninth-place position in 2020-21. This shift underscores the Netherlands' emergence as a central European hub, facilitated by its efficient ports and robust connectivity with the EU via roads, railways, and waterways.
Beyond the economic realm, India and the Netherlands share a multifaceted relationship encompassing political, economic, and commercial spheres. Despite a marginal dip in bilateral trade to US$27.34 billion in 2023-24 from US$27.58 billion in the preceding year, the foundational ties established since 1947 continue to foster mutual growth and cooperation.
In summary, the enduring partnership between India and The Netherlands reflects a dynamic interplay of economic synergies and shared strategic interests. As both nations navigate the complexities of a rapidly evolving global landscape, their collaborative efforts are poised to further bolster bilateral ties and drive sustainable growth for years to come.