Economic Affairs
E-mail:
nde-ea@minbuza.nl
Tel No.: +91 11 24197600
Fax No.: +91 11 24197709
India is a promising country with excellent opportunities for the Dutch Industry. Currently India is the fourth largest economy (after the US, China and Japan) and India continous to have high economic growth levels (on average above 6% per annum).
The succes of the Indian IT-sector is widely known, but India offers more than just software experts in Bangalore. In addition to the IT-sector India is strong in medical biotechnology and pharmacy.
The Netherlands, with its 400-year long history of trade with India, is among the leading investors in the country, and in 2006 has also become the largest recipient of Indian overseas investment.
India Netherlands Trade and Investment Trends
According to a Goldman Sachs study, four countries, Brazil, Russia, India and China (identified as BRIC countries) will be among the fastest growing economies over the next 50 years. And, India will be the third largest economy in the world by 2040.
India is among the fastest-growing economies in the world, fuelled by growth in all sectors, particularly its globally competitive knowledge-based sectors, a growing consumption of goods and services by its 300 million strong middle class population, major investments in infrastructure creation, and an increasingly open business environment with opportunities for domestic as well as international players.
The Netherlands, with its 400-year long history of trade with India, is among the leading investors in the country, and 2006, has also become the largest recipient of Indian overseas investment.
a). India’s Trade with Netherlands(2002-03 TO 2006-07)
Year | Exports to Netherlands US$ Mn | % of Total Exports | Import from Netherlands US$ Mn | % of Total Imports | Two-way trade US$ Mn | Growth |
2002-03 | 1049.71 | 1.98% | 385.74 | 0.63% | 1435.45 | - |
2003-04 | 1289.12 | 2.0% | 535.56 | 0.68% | 1824.68 | 27.1% |
2004-05 | 1604.80 | 1.97% | 791.46 | 0.70% | 2396.26 | 31.3% |
2005-06 | 2474.24 | 2.4% | 1049.01 | 0.70% | 3523.25 | 47.0% |
2006-07 (April-Sept) | 1175.41 | 1.92% | 512.35 | 0.58% | 707.05 | - |
b). Investment
Foreign Direct Investment Inflows by Country (Aug 1991 to March 2007)
Rank | Country | FDI US $ Million | % of total inflow |
1 | Mauritius | 18147 | 41.24% |
2 | United States | 5894 | 12.78% |
3 | United Kingdom | 3857 | 8.68% |
4 | Netherlands | 2638 | 5.94% |
5 | Japan | 2209 | 4.85% |
6 | Germany | 1702 | 3.68% |
7 | Singapore | 1628 | 3.67% |
8 | France | 895 | 1.98% |
9 | South Korea | 823 | 1.68% |
10 | Switzerland | 692 | 1.50% |
Source: Department of Industrial Policy and Promotion,
Ministry of Commerce and Industry, India