The Netherlands Was India’s Third Largest Export Destination in April-December 2022: Commerce Ministry Data

The Netherlands was India’s third largest export market as per government data for April-December 2022. The jump in Indian outbound shipments, especially of petroleum products, resulted in a US$12.3 billion trade surplus with the Netherlands in 2022.

A glance at India-Netherlands trade data

The Netherlands became India’s third largest export destination in FY 2023, for the months of April-December 2022, as per data from the Ministry of Commerce. The Netherlands took over the UK, Hong Kong, Bangladesh, and Germany – to feature in the top three export markets for India.

Previously, in 2021-22, the Netherlands was India’s fifth largest export hub while in 2020-21 it was the ninth.

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Outbound shipments from India to the Netherlands in 2021-22 was US$12.55 billion, a jump from the US$6.5 billion recorded in 2020-21. The boost to India’s export growth has been evident in recent years – after all, Indian exports to the Dutch nation amounted to just US$880 million in 2000-01.

India’s trade surplus with the Netherlands grew to US$12.3 billion in 2022 – a visible increase from the US$1.5 billion surplus recorded in 2017. For the calendar year 2022, Indian exports to the Netherlands were valued at US$18.1 billion, up from US$5.5 billion in 2017.

For the period April-December 2022, India’s exports to Netherlands grew 69 percent to reach US$13.67 billion, higher than the US$8.10 billion recorded during the same period in the preceding year.

New Delhi is prioritizing export-led growth, having accelerated free trade deals with the UAE and Australia in 2022 and seriously pursuing trade negotiations with the UK and the European Union. 

What is causing the jump in India-Netherlands two-way trade?

Driving up the trade momentum between India and the Netherlands are India’s outbound shipments of petroleum products, electronics goods, chemicals, and aluminum goods. As per data from the Global Trade Research Initiative, Indian petroleum products like aviation turbine fuel (ATF) and diesel dominated the export basket and within the electronics category, telecom equipment and smartphone shipments were valued at over US$1 billion.

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Speaking to PTI, Federation of Indian Export Organization (FIEO) Director General Ajay Sahai explained that petroleum exports from India to the Netherlands grew from US$2.7 billion during April-November 2021-22 to US$6.4 billion as energy companies use the European country as a distribution hub. Other notable exports to the Netherlands are aluminum, electrical and electronics items, and pharmaceuticals – but whose final consumer markets could be Germany or France.

Exporters prefer the Netherlands for their shipping operations as the country consistently ranks among the top of the World Bank Logistics Performance Index. It boasts of an advanced digital logistics architecture, besides efficient seaports, air transport, and business-friendly VAT implementation – making it easier for companies to reach European and EU customers. Interestingly, logistics specialists comprise more than 10 percent of the Dutch workforce.

A growing investment partnership

The Netherlands is among India’s top five investor countries. In the April-September period of FY 2022-23, India received US$1.76 billion in foreign direct investment (FDI) from the Netherlands. It was US$4.6 billion in 2021-22.

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India-Netherlands Trade and Investment Ties

Key areas of cooperation between India and the Netherlands are agriculture, health, port and shipping, science and technology, higher education, and urban development. Both countries are working on strategic partnerships in the water sector as Netherlands is a pioneer in water management besides science and R&D.

Over 200 Dutch companies have a presence in India, including Royal Dutch Shell, Unilever, Philips, AkzoNobel, DSM, KLM, and Rabobank.

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