Netherlands emerges as India's 3rd largest export destination in 2023-24

• The Netherlands has emerged as India's third largest export destination after the U.S. and UAE during 2023-24, even as the country's merchandise shipments dipped by over 3%, according to the Commerce Ministry data.

Highlights:

• The main commodities which registered healthy exports growth in the Netherlands include petroleum products ($14.29 billion), electrical goods, chemicals, and pharmaceuticals.
• India's trade surplus with the Netherlands has increased to $17.4 billion in the last fiscal from $13 billion in 2022-23.
  • The Netherlands has taken over export destinations of the U.K., Hong Kong, Bangladesh and Germany.
  • India's exports to the Netherlands rose by about 3.5% in 2022-23.
  • The Netherlands has emerged as a hub for Europe with efficient ports and connectivity with the EU through roads, railways and waterways.
• The Netherlands is a gateway to Europe as its ports are very efficient.
• India and the Netherlands established diplomatic relations in 1947.
  • Since then, the two countries have developed strong political, economic and commercial relations.
  • In 2023-24, the bilateral trade between the two countries marginally dipped to $27.34 billion as against $27.58 billion in 2022-23.
• It is also a major investor in India.
  • During the last fiscal, India received about $5 billion in foreign direct investment from the Netherlands. It was $2.6 billion in 2022-23.
  • There are over 200 Dutch companies present in India.
  • Similarly, There are more than 200 Indian companies operating in the Netherlands, including all the major IT firms as well Pharmaceuticals and Steel.

Prelims Takeaway:

• Ministry of commerce
• India- EFTA relations