India’s exports to the Netherlands are growing rapidly as petrol product shipments rise in 2023

India’s exports to the Netherlands are growing rapidly as petrol product shipments rise in 2023

Additionally, the trade surplus between India and the Netherlands expanded, rising from USD 1.5 billion in 2017 to USD 12.3 billion in 2022. Fuel was a significant component of Indian exports. As a major port for fuel imports, Rotterdam was seen to be a suitable destination for Indian fuel exports to the EU.

However, a significant export of commodities also had a role in the increase. The Netherlands is a gateway to Europe due to its good hinterland connections, making it a key location for the shipment of commodities from India to Europe.

In this fiscal year’s April to December period, the Netherlands overtook the United States and the United Arab Emirates as India’s third-largest export destination due to an increase in the shipment of goods such as petroleum products, electronics, chemicals, and aluminium products.

Furthermore, India’s trade surplus with the Netherlands rose from USD 1.5 billion in 2017 to USD 12.3 billion in 2022. According to data from the trade ministry, the Netherlands has replaced essential destinations like the UK, Hong Kong, Bangladesh, and Germany. According to the data, India’s exports to the Netherlands increased by almost 69% between April and December 2022, from USD 8.10 billion to USD 13.67 billion.

The Dutch economy has traditionally been relatively open and has excellent logistics capabilities—the largest and most effective harbour in Europe is Rotterdam. As a result, many Indian exports to Germany, France, and Belgium also pass through the Netherlands in addition to those to the Netherlands. India is doing very well in the world of trade; in 2022, its exports were at their highest level.

The number of goods exported to the European nation in 2021–2022 and 2020–2021 was USD 12.55 billion and USD 6.5 billion, respectively. Since India’s exports to that country were USD 880 million in 2000–01, the exports have been growing steadily. In addition, the Netherlands ranked sixth in the volume of Indian exports in 2021–22 as opposed to ninth in 2020–21.

The Netherlands has established itself as a hub for Europe, according to Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai, thanks to its effective port and access to the EU via roads, railroads, and canals. The amount of petroleum exported increased dramatically. Due to oil corporations using the Netherlands as a distribution hub, from April through November of this fiscal year, exports increased from USD 2.7 billion to USD 6.4 billion.

Even though some of these products may be ultimately consumed in Germany or France, aluminium, electrical and electronic, and pharmaceutical exports also made a substantial contribution, Sahai noted. India’s exports to the nation climbed from 5.5 billion USD in 2017 to 18.1 billion USD in 2022 throughout the calendar year.

The two main petroleum products that India sold to that nation were ATF (aviation turbine fuel) and diesel, according to the economic research organisation GTRI (Global Trade Research Initiative). According to the report, the essential electronic items were telecom equipment and cell phones, with a combined worth of more than $1 billion.

Sharad Kumar Saraf, a Mumbai-based exporter and the chairman of Technocraft Industries, claimed that the Netherlands is a gateway to Europe since its ports are more effective and, thus, less expensive for shipping operations than other European ports.

Diplomatic ties between India and the Netherlands were established in 1947. Since then, the two nations have established close political, economic, and trade relationships. India’s government wants to become an export hub to promote job growth.

Since the early 1990s, the export-to-GDP ratio has rapidly increased and is roughly equal to China. However, the significant proportion of services in the total exports stands out. While India has excelled at exporting IT services, its performance in this area has lagged. Exports of industrial goods that need a lot of labour could expand more quickly and help to create jobs.

Policies to raise the competitiveness of India’s exports are covered in the 2019 OECD Economic Survey of India. While many nations have decreased their reliance on refined oil products from Russia, India has experienced a substantial increase in crude imports from Russia and is seen refining and selling it to several nations, particularly in Europe.

In 2021–22, the Netherlands and India’s bilateral commerce was valued at USD 17 billion, up from roughly USD 10 billion in 2020–21. The Netherlands, Germany, Switzerland, the UK, and Belgium, are among India’s major trading partners in Europe. It invests heavily in India as well. India got USD 1.76 billion in foreign direct investment from the Netherlands between April and September this fiscal year. In 2021–2022, it was USD 4.6 billion.

Over 200 Dutch businesses, including Philips, Akzo Nobel, DSM, KLM, and Rabobank, have operations in India. The same is true for the Netherlands, where over 200 Indian businesses are operating, including all the big IT giants like TCS, HCL, Wipro, Infosys, Tech Mahindra, Sun Pharmaceuticals, and Tata Steel. A fantastic partner for international investors in India is Invest India.

The Make in India initiative can help Dutch businesses make investments in India. The partnership between Cochin Shipyard Limited and Dutch shipbuilder Royal IHC is a prime illustration. To fulfil the rising demand for dredging services in India, they would construct cargo ships for DCI under the Make in India programme.

There are many synergies between India and the Netherlands, and their relationship is inevitable. Both countries cherish rule-based systems and pluralistic societies, and both live in democracies. The economies are both driven by the market and innovation.

Edited by Prakriti Arora