Diplomacy in action: India and the Netherlands continue to forge stronger bonds

India and the Netherlands have a rich history of bilateral meetings and cooperation, showcasing a dynamic partnership in trade and economy. Both nations have embarked on novel areas of collaboration, including sustainable development, innovation, and technology. This robust relationship is marked by mutual visits and strategic dialogues aimed at strengthening economic ties and exploring new opportunities. As they continue to build on their shared values and goals, the future scope of this partnership promises enhanced cooperation in climate change, water management, energy transition and digital transformation etc., paving the way for a thriving and sustainable future. 

              

Article by Albin K S

Research Intern (Summer 2024)

The Netherlands Embassy is supporting the multi-city wall painting initiative to commemorate 75 years of cultural ties between India and the Netherlands

Tracing back to history, India and the Netherlands share a long history of engagement dating back to 400 years  (17th century) when the Dutch traders established their roots in India. They were among the first European traders to engage with India, particularly centered around the region of Gujarat, Bengal, and the Malabar Coast. This enduring legacy has often paved the way for multifaceted and new diplomatic ties between the two nations back in 1947. The two nations are said to maintain strong economic, political, and commercial relations fostering each other. The year 2022 marks a locus point as it signifies the 75th anniversary of establishment of diplomatic ties.

This article explores the historical ties and Bilateral meetings between two nations, joint venture in Trade and commercial activities, Economic relations and investment, Recent Developments encompassing FTP, novel areas of cooperation that count energy transition and sustainability, Smart cities and urban development, cultural and educational exchanges, and collaboration in water management. At the end of this article, readers will uncover an accurate depiction of the diplomatic ties between India and the Netherlands exploring various domains.

Historical Ties And Bilateral Meetings 

India and the Netherlands established their diplomatic ties back in 1947. Their long history of engagement can be traced back to 400 years of trade and 75 years of official diplomatic ties. The Dutch East India Company played a crucial role in establishing trade relations with the Indian subcontinent. They were involved in the trade of spices and their presence extended to areas of Surat, the Coromandel coast, and Malabar. 

Numerous bilateral meetings suggest a greater involvement from both nations to bolster relations. We have had two State visits, when Indian PM Narendra Modi visited Netherlands in 2017 and his Dutch counterpart, Mark Rutte, visited India in 2018.  High-level exchanges have provided impetus to multifaceted partnerships among both nations. Water, agriculture, and health are seen as three priority sectors besides technology and innovation. Recently, Marisa Gerards, the  Ambassador of the Kingdom of the Netherlands to India, Nepal, and Bhutan made her official visit to Rajasthan, having a fruitful discussion with Deputy CM Divya Kumari and Chief Secretary Sudhansh Pant, where both stakeholders discussed prospective areas of cooperation, covering the domains of women’s empowerment, culture and tourism.

Trade And Commercial Activities

The Netherlands is India's largest trading partner in Europe and it is also the fourth largest investor in India. The year 2022-23 marked a cornerstone when bilateral trade reached an all time high of USD 27.58 billion. There are over 300 Dutch companies operating in India, including key players like Philips, Signify, Akzo Nobel, and DSM. Indian companies (including corporate giants like Infosys, HCL, Wipro, TCS, etc.) are also investing in the Netherlands in a big way and the latter is now the 4th largest destination for Overseas Direct Investment (ODI) for Indian companies. 

On September 27, 2022 in New Delhi, in order to facilitate investments by Dutch companies in India, a bilateral Fast Track Mechanism (FTM) between India and the Netherlands was signed by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Embassy of Netherlands. In terms of trade, India exported 4679 commodities to the Netherlands in the financial year 2023. There’s also a recent shift evident in India’s exports to the Netherlands in 2022-23 and 2023-24. India’s exports to the Netherlands stood at 21.62 billion during 2022-23, where major exported items included petroleum products, telecom instruments, aluminum and its products, organic chemicals, drug formulations etc. Compared to exports in 2023-24, major exported items were petroleum products, engineering goods, electronics goods, organic chemicals, drugs and pharmaceuticals etc. Highlighting the aspect of imports, India imported 4109 commodities from the Netherlands in FY23. India’s imports from the Netherlands stood at USD 5.96 billion during 2022-23 and USD 3.52 billion in 2023-24.

Economic Relations And Investment 

India and the Netherlands have a long history of economic relationships denoted by trade and investment reforms. The Netherlands has been one of the key trading partners of India in the European Union (EU). The cumulative FDI inflow from the Netherlands to India stood at USD 45.68 billion from April 2000-September 2023. As per the data from Ministry of Commerce and Industry, Netherlands has emerged as India’s third largest export destination after the US and UAE during 2022-20.

Netherlands is a key investor in India in achieving a top stop in Foreign Direct Investment (FDI). Dutch companies have invested in various sectors in India, notably Agriculture and food processing, Higher education, Water management, Technology and innovation etc. Both countries are working on strategic partnerships in water management as Netherlands is a pioneer, besides science and Research & Development. The Government of Netherlands and  India's Strategic Water Partnership, along with the Ministry of Jal Shakti and other institutes met in New Delhi. Focusing on the realm of renewable energy, the pivotal consideration attributed to sustainable development has yielded Dutch investment in India’s renewable sector, especially in wind and solar energy. The Netherlands signed the Framework Agreement of the International Solar Alliance (ISA) in May 2018. India is one of the convening countries of the Global Commission on Adaptation (GCA), headquartered in the Netherlands. Moreover, investment in the technological sector has contributed to the growth in IT, telecommunication, smart cities, etc. There are over 300 Dutch companies present in India, including Philips, Signify, Akzo Nobel, DSM, Heineken, KLM, and others. Indian companies are also investing in the Netherlands in a big way and the Netherlands is now the 4th largest destination for Overseas Direct Investment (ODI) by Indian companies. 

Centralizing to the aspect of higher education, Netherlands holds the second largest Indian diaspora after the United Kingdom in Europe and the largest in mainland Europe, totaling around 2,60,000 comprising 60,000 Indians and 2,00,000 strong Surinami-Hindustani community of Indian origin. The Netherlands is seen as a favored destination for students for their higher studies explicitly in the field of science and technology. The long-standing collaboration of various Dutch universities like Leiden University, Tu Delft, etc, with Indian Universities is a clear testament to this relationship.

An Insight Into The Recent Developments And Novel Areas Of Cooperation

Novel areas of cooperation between India and Netherlands have been evident throughout their strategic partnership in various domains like energy transition and sustainability, strategic water management, women empowerment, smart cities and urban development, health cooperation etc.

Energy Transition and Sustainability: Both nations have escalated their cooperation in the field of energy transition and sustainability. A significant step was the signing of a Statement of Intent (SoI) on 28 September 2020  by Niti Aayog and Embassy of Netherlands to support the decarbonization and energy transition agenda for accommodating cleaner and more energy. The basic objective is to reduce the emission intensity by  33%-35% by 2030. This SoI will encourage more collaboration, boost the economies of the two nations but also achieve the UN Sustainable Development Goals (Goal 7).

The deployment of Liquefied Natural Gas (LNG) as a transport fuel for medium and heavy commercial vehicles is a further step in this venture.  

Strategic Water Management: The Netherlands is renowned for its expertise in water management, and it has collaborated with India on several projects aimed at managing water resources effectively. During the virtual dialogue held between the Indian PM and Dutch PM on 9th April 2021, both leaders acknowledged and confirmed the strategic partnership on water. As a foremost step, both nations have decided together to elevate the existing Joint Working Group on water to Ministerial level. The 1st meeting of the Ministerial JWG on water was held in India in April 2023 during the visit of Mr. Mark Harbers, Minister of Infrastructure & water Management of the Netherlands. The Netherlands is engaged with various States and Municipalities in India to implement water-related projects including the States of UP (Namami Ganga Programme), Tamil Nadu (water as leverage, water management and conservation) and Kerala (flood management).

This partnership further aims to expand the ongoing bilateral water corporation through greater involvement of policy experts, academia, knowledge institutes and various stakeholders. Further, this also aims at combining the resources, expertise and knowledge skills to tackle water related challenges. 

Women’s Empowerment: “When women participate in the economy everyone  ”(Hillary Clinton). Recently, Ambassador Marisa Gerards, Second Secretary Joost van Oostenbruggen and Senior Policy Officer Shweta P. Kaushik made their first official visit to Rajasthan. Ambassador Marisa Gerards had a fruitful discussion with Deputy Chief Minister of Rajasthan Diya Kumari and Chief Secretary Sudhansh Pant. They discussed prospective areas of cooperation between India and the Netherlands, including culture, women's empowerment, and tourism. 

One of the notable initiatives is the “Mahila Jan Adhikar Samiti” (MJAS) supported by the embassy in Ajmer. This program is aimed to build the resilience of 240 girls and young women in the Kekri block of Ajmer district through sports and technology. This initiative not only enhances their life skills and confidence but also prepares them to become future leaders. The G20 Ministerial Conference on Women’s Empowerment too holds a significant spot here. This conference, which took place on the 2nd to 4th August 2023 includes participation by Women and Gender Equality Ministers from across the G20 and Guest countries.

Smart Cities and Urban Development: India and the Netherlands signed an MoU in the field of Spatial Planning, Water Management and Mobility Management in 2013. Under the MoU, both sides intend to cooperate through a JWG (Joint work Group) led by the Ministry of Housing and Urban Affairs, India and the Ministry of Infrastructure and Water Management, Netherlands. Another significant milestone is the MOU signed by the Government of Netherlands and Mumbai Metropolitan Region Development Authority” [MMRDA] for sustainable urban development. MMRDA will utilize the Dutch expertise to transform the MMR in terms of integrated waste management, climate resilience and circular economy.

The MOU was signed between the MMRDA and the Netherlands Ministry of Environment and Water Management to enforce sustainable urban development in the MMR at the World Economic Forum (WEF). This also has the potential to lead an active collaboration with other Dutch companies in the field like Sustainable Business Development, Technimex, Hydraloop etc.

Health Corporation: The government of India and Netherlands have been significantly exhibiting their corporation in the domain of health. The concept of digital health is a key area within the healthcare sector and both the Netherlands and India are making rapid advancements in it. The “Dutch Research Council” and “Indian Council of Medical Research” (ICMR) have already engaged in advancing digital health for pathbreaking cancer. In order to explore the possibilities in the arena of digital health, an Indian delegation representing the Ministry of Health and Family Welfare and ICMR visited the Netherlands from 13-17th May. 

India and Netherlands cooperate through a Joint Working Group on Health led by the Ministry of Health on both sides under this MoU. The 5th meeting of this JWG was held in February 2023 and discussions were held on antimicrobial resistance, Covid-19 vaccination, collaboration on digital health and so on. A Memorandum of Intent on Medical Products Regulation was signed by both sides in November 2023.

Future Scope Of Diplomatic Ties Between India And Netherlands  

These strategic partnerships and collaboration in various sectors can foster significant growth and development for both nations. Focusing on the sector of Energy Transition and Sustainability, these shared goals, collaborative projects and knowledge exchange can significantly be an asset for continued growth. Joint research and capacity-building initiatives can contribute to long-term partnerships in the health sector. Focusing on the domain of education, high level academic exchange programs, funding, and assistance in the form of scholarships and grants can accord positive growth in the future as well. 

Likewise, qualities such as shared values of democracy, accordance with sustainable development goals, and the rule of law can stimulate continued progress and development in the aspect of partnerships in climate change, trade etc. tackling global challenges and envisaging mutual growth. Strengthening these ties can not only nurture and benefit these two countries, it can generate international attention to the matters that need critical attention since decisions taken by one nation can manifest it in other nations as well, the world is now a global entity.

References 

"India-Netherlands Trade." IBEF, India Brand Equity Foundation, https://www.ibef.org/indian-exports/india-netherlands-trade.

"India-Netherlands Relations." Indian Embassy, https://indianembassynetherlands.gov.in/page/india-netherlands-relations/.

"Strategic Water Partnership Signed." Ministry of External Affairs, https://www.mea.gov.in/Images/CPV/strategicwaterpartnershipsigned.pdf.

"MMRDA Signs MoU with Government of Netherlands for Sustainable Urban Development." Times of India, 2023, https://timesofindia.indiatimes.com/city/mumbai/mmrda-signs-mou-with-government-of-netherlands-for-sustainable-urban-development/articleshow/106964414.cms.

Statement of Intent on ‘Decarbonization and Energy Transition Agenda Press Information Bureau, https://pib.gov.in/PressReleasePage.aspx?PRID=1660267.