Understand the India-Netherlands relations and the business expansion opportunities in India
What started with a spice trade has bloomed into a full-fledged bilateral trade and flourished the India Netherlands relations. Over the years, India has become a natural trade partner for the Netherlands and has had maximum collaborations with Dutch companies in various sectors.
Since the time of frequent visits by the Dutch royal couple King Willem-Alexander and Queen Maxima to India and the Prime Minister of India to the Netherlands, approximately 40 business-to-business (B2B) pacts valuing €650 million have been in place in areas such as agriculture, agrotechnology, water treatment, and healthcare.
With around 6.5 billion US dollars directed by the Netherlands toward India, it is one of the top European partners and is expected to grow exponentially in the upcoming years.
India Netherlands relations
The Indian community and culture have received alot of praise from the Dutch and have had a great impact on the cultural, economic, and political life of the Netherlands. The Dutch Minister of Justice and Security also mentioned that Indians residing in the Netherlands are known as the “best-integrated communities.”
The cultural ethos of both countries has accelerated the creation of a favorable climate for business expansion and trade relations. India Netherlands relations have shown a great trajectory in the past and continue to grow.
India and Netherlands have been working together on water management strategies and have joined hands for rainwater harvesting projects. In May 2022, the Netherlands Prime Minister inaugurated the Indo-Dutch Ganga forum boosting the Memorandum of Understanding (MoU) signed in June 2021 between the Ministry of Infrastructure and Environment, Netherlands, and the Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India. The forum aims to purify and clean the heavily polluted water in the Ganga basin using Dutch expertise.
Current scenario of Dutch services in India
There are major Dutch players having their mark in India such as Philips, Unilever, and Royal Dutch Shell. Similarly, IT companies like Wipro, Tech Mahindra, TCS, HCL, and Sun Pharmaceutical companies have their establishments in major Dutch cities.
Significant acquisitions and mergers have fallen into place in the past decade. For instance, Hotel company OYO Hotels and Homes announced the acquisition of an Amsterdam-based vacation rental firm in 2019. In addition, the Serum Institute of India took a huge step and purchased the Dutch company Bilthoven Biologicals.
To boost this exponential rise of India Netherlands relations and bilateral trade, there are numerous government organizations, such as the Netherlands-India Chamber of Commerce & Trade (NICCT) and the Indian Business Chamber (IBC).
There are various initiatives that have played a pivotal role in enhancing business expansions in both countries. NITI Aayog and the Embassy of the Netherlands from New Delhi signed a Statement of Intent (SoI) in 2020 which support the decarbonization and energy transition agenda. The partnership is focused on adopting clean air technologies, and lowering carbon footprint by deploying techniques developed in both countries.
The Indo-Dutch #StartUpLink initiative, developed by Startup India in collaboration with the Netherlands Embassy is designed to provide information, opportunities, and a point of contact in the pool of Indian and Dutch startup ecosystems respectively. This initiative not only helps you evaluate your ideas in the market but also helps you explore various opportunities and navigate your first step in the business ethos of a new market. Business investment in India by Netherlands is not just an idea but developed into a strategic move for Indian startups!
Why India is favored by Dutch Companies?
The Netherlands with its growing developments in technology, innovation, and infrastructure, has a keen interest in taking its business overseas. With an increasing number of Dutch companies looking to diversify their business and expand their services beyond China, India serves as an excellent complementary location.
As per Indian statistics, the Netherlands is the 4th largest foreign direct investor in India. The cumulative flow of FDI from the Netherlands to India was USD 42.3 billion between April 2000 to June 2022. If settled in the Netherlands and exploring options for foreign investments, India offers just what Dutch companies need, and has become a favorable destination for business expansion.
Priority sectors for Dutch companies
The Dutch companies are global leaders in sectors like Agriculture, Water Management, Ports and Logistics, Inland Waterways, Healthcare, Science & Technology, Urban Development, Shipping, and Renewable Energy sectors. The Dutch government and business leaders are keenly aware that there is a lot to share with India in these sectors. That is the reason to prioritize these sectors for bilateral cooperation going forward in 2023 and beyond. Early participation in sectors will mean that Dutch businesses will have the opportunity to cherry-pick projects and participate in green field projects.
The skills and resources of India offer new opportunities for Dutch companies
The feasibility of remote working is acknowledged and accepted by businesses worldwide. Dutch companies can capitalize on this opportunity and expand their operations in India.
As remote working prospers in 2023 and beyond, companies prefer to hire remote employees and build their teams in India. Employees in India have redefined their skills and technical competencies to maximize their productivity in multiple areas such as research, designing, engineering, software development, and so on. Dutch companies can hire these skilled professionals and create an effective future remote workforce in India.
Moreover, a smart low-cost footprint in India will keep you in touch with the mega once-in-a-lifetime opportunities unraveling in India due to the transformation underway in the country. It will give your businesses a boost while also setting up your processes and systems to scale up to keep pace with your business growth.