Context: The Netherlands has emerged as India's third largest export destination during 2023-24.

Key Highlights

• According to Ministry of Commerce and Industry data in 2023-24, the Netherlands has become India's third largest export destination, following the U.S. and UAE, despite a decline of over 3% in India's merchandise shipments.

• In 2021-22, the Netherlands was the fifth largest destination for Indian exports, up from ninth place in 2020-21.
• Key Export Commodities: The primary commodities that registered export growth to the Netherlands includes Petroleum products ($14.29 billion), Electrical goods, Chemicals and Pharmaceuticals. 

Trade Surplus Growth: India's trade surplus with the Netherlands increased to $17.4 billion in 2023-24, up from $13 billion in 2022-23.

• The Netherlands has surpassed major export destinations such as U.K., Hong Kong, Bangladesh and Germany.
• Bilateral Trade: In 2023-24, bilateral trade between the two countries slightly dipped to $27.34 billion from $27.58 billion in 2022-23.
• Strategic Hub for Europe: Trade experts highlight the Netherlands as a strategic hub for Europe due to its efficient ports and connectivity through roads, railways, and waterways.
• Top Trading Partner in Europe: The Netherlands is among India's top trading partners in Europe, following Germany, Switzerland, the U.K. and Belgium. 
• Investments: It is also a significant investor in India, with foreign direct investment amounting to about $5 billion in 2023-24, up from $2.6 billion in 2022-23.

About India-Netherlands Relations 

• India and the Netherlands established diplomatic relations in 1947. The Year 2022 marked 75 years of establishment of diplomatic relations.
• India and the Netherlands enjoy strong political, economic & commercial relations with significant Dutch investment in India with companies like Philips, Akzo Nobel, DSM etc.
• Similarly, the Netherlands hosts over 200 Indian companies, including major IT firms like TCS, HCL, Wipro, Infosys etc, alongside Sun Pharmaceuticals and Tata Steel.

• Areas of Cooperation:

• Water, Agriculture & Health (WAH) are priority sectors for collaboration due to India's developmental needs and Dutch expertise.
• Focus on areas like smart cities, clean technology, and renewable energy development etc.