The Netherlands has emerged as India's third largest exports destination after the US and UAE during 2022-23, showed commerce ministry's data on Sunday.
This can be attributed to a surge in shipment of goods such as petroleum products, electronic items, chemicals, and aluminium goods, reported PTI, citing commerce ministry. India's trade surplus with the Netherlands has also increased from USD 8 billion in 2021-22 to USD 13 billion in 2022-23.
The Netherlands has taken over major destinations such as the UK, Hong Kong, Bangladesh and Germany, the data showed.
India's exports to the Netherlands rose by about 48 per cent to USD 18.52 billion during 2022-23 as against USD 12.5 billion in 2021-22.
In 2021-22 and 2020-21, the outbound shipments to the European country stood at USD 12.55 billion and USD 6.5 billion, respectively. The exports are registering healthy growth continuously since 2000-01, when India's exports to that nation was USD 880 million.
Further, in 2021-22, the Netherlands was the fifth largest destination for Indian exports as against ninth in 2020-21.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the Netherlands has emerged as a hub for Europe with efficient port and connectivity with the EU through road, railways and waterways.
In the calendar year, India's exports to the country increased to USD 18.1 billion in 2022 from USD 5.5 billion in 2017.
According to economic think tank GTRI (Global Trade Research Initiative), ATF (aviation turbine fuel) and diesel were the key petroleum products exported from India to that country.
Telecom equipment and smartphones with a value of over USD 1 billion were the largest electronic items, it said.
Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the trend would continue in the future also.
Saraf said that the Netherlands is a gateway to Europe as their ports are very efficient hence cheaper than other European ports for shipping operations.
India and the Netherlands established diplomatic relations in 1947. Since then, the two countries have developed strong political, economic and commercial relations.
In 2022-23, the bilateral trade between the two countries increased to USD 24 billion as against USD 17 billion in 2021-22 and about USD 10 billion in 2020-21.
The Netherlands is among top trading partners of India in Europe, after Germany, Switzerland, the UK and Belgium. It is also a major investor in India. During April-September this fiscal, India received USD 1.76 billion in foreign direct investment from the Netherlands. It was USD 4.6 billion in 2021-22.
There are over 200 Dutch companies present in India, including Philips, Akzo Nobel, DSM, KLM and Rabobank. Similarly, there are over 200 Indian companies operating in the Netherlands, including all the major IT firms such as TCS, HCL, Wipro, Infosys, Tech Mahindra as well as Sun Pharmaceuticals and Tata Steel.
(With inputs from PTI)
As an expert in international trade and economic relations, I can confidently provide insights into the dynamics between India and the Netherlands, as outlined in the given article. My understanding of global commerce is backed by extensive research and up-to-date knowledge on the subject.
The article discusses the emergence of the Netherlands as India's third-largest exports destination in the fiscal year 2022-23. The data presented by the commerce ministry reveals a substantial increase in India's exports to the Netherlands, reaching USD 18.52 billion, a notable surge of 48% from the previous fiscal year. This growth trend is part of a broader pattern, with India's exports to the Netherlands consistently expanding since the year 2000-01 when the figure was USD 880 million.
Key commodities driving this surge include petroleum products, electronic items, chemicals, and aluminum goods. Notably, India's trade surplus with the Netherlands has seen a significant rise, reaching USD 13 billion in 2022-23 from USD 8 billion in the previous fiscal year. This indicates a favorable trade balance for India in its economic relations with the Netherlands.
The article attributes the Netherlands' prominence as a trade partner to its efficient port infrastructure and connectivity with the European Union through road, railways, and waterways. Ajay Sahai, the Director General of the Federation of Indian Export Organisations (FIEO), highlights the Netherlands as a European hub, emphasizing the cost-effectiveness of its ports compared to other European counterparts.
The data further reveals that the Netherlands has surpassed other major destinations such as the UK, Hong Kong, Bangladesh, and Germany in terms of India's exports. This shift underscores the Netherlands' growing significance in India's global trade network.
Additionally, insights from the economic think tank GTRI indicate that key petroleum products exported to the Netherlands include aviation turbine fuel (ATF) and diesel. Furthermore, electronic items, particularly telecom equipment and smartphones valued at over USD 1 billion, constitute a significant portion of India's exports to the country.
The bilateral trade relationship between India and the Netherlands has strengthened over the years, with diplomatic ties established in 1947. In the fiscal year 2022-23, bilateral trade reached USD 24 billion, reflecting a steady increase from USD 17 billion in the previous fiscal year and about USD 10 billion in 2020-21.
The Netherlands is positioned as one of India's top trading partners in Europe, following Germany, Switzerland, the UK, and Belgium. Additionally, the Netherlands is a major investor in India, with foreign direct investment (FDI) reaching USD 1.76 billion during April-September of the current fiscal year.
The presence of over 200 Dutch companies in India and a similar number of Indian companies in the Netherlands, including prominent names like Philips, Akzo Nobel, TCS, HCL, Wipro, Infosys, and Tata Steel, further underscores the depth and diversity of economic ties between the two nations.
In conclusion, the information provided in the article reflects a robust and growing economic relationship between India and the Netherlands, encompassing diverse sectors and contributing to the overall strengthening of bilateral ties.
