The Netherlands has emerged as a key destination for Indian exports, becoming the country’s third-largest export partner in 2023-24, according to the Commerce Ministry. This comes despite a slight dip in India’s overall merchandise shipments.
The Netherlands replaced major destinations like the UK, Germany, Hong Kong and Bangladesh for Indian goods. Exports to the European nation grew by 3.5% to $22.36 billion in 2023-24, driven by a surge in petroleum products, electrical goods, chemicals, and pharmaceuticals. This marks a significant rise from $6.5 billion in 2020-21.
Stronger Trade Ties
Trade experts attribute this growth to the Netherlands’ position as a European trade hub. With efficient ports and strong connectivity via roads, railways, and waterways, the Netherlands acts as a gateway to the entire European Union for Indian exports.
India and the Netherlands have enjoyed strong political and economic ties since establishing diplomatic relations in 1947. While overall bilateral trade dipped slightly in 2023-24, the Netherlands remains a major investor in India, with foreign direct investment reaching $5 billion in the last fiscal year.
Looking Ahead
Industry leaders like Sharad Kumar Saraf, chairman of Technocraft Industries, believe this trend of increasing exports to the Netherlands will continue. The Netherlands’ efficient ports and role as a European gateway are seen as key factors for this growth.
With over 200 Dutch companies operating in India and a similar number of Indian firms established in the Netherlands, the two countries share a strong and growing economic partnership.
