The recent Virtual Summit between the Prime Ministers of India and the Netherlands has brought to light a multitude of opportunities for collaboration and mutual benefits between the two nations. The high-level summit that took place is the first of its kind since the general elections held in the Netherlands in March 2021. Back in 2019, the Dutch King and Queen visited India, paving the way for stronger bilateral ties.
Review of Bilateral Engagements
The leaders of the two countries had extensive discussions about expanding and diversifying their relationship in various sectors such as trade, economy, water management, agricultural sector, smart cities, science & technology, healthcare and space. They further recognized the potential for Indo-Dutch collaboration through ambitious programs like Clean India, Digital India, Make in India, Sagarmala, Ayushman Bharat and Startup India in numerous sectors. Additionally, they discussed global challenges like climate change, counter-terrorism and the Covid-19 pandemic, and identified potential cooperation areas including the Indo-Pacific, Resilient Supply Chains and Global Digital Governance.
Strategic Partnership on Water
A significant outcome of the summit was the agreement on establishing a ‘Strategic Partnership on Water’ to deepen cooperation in the water-related sector. This included elevating the Joint Working Group on Water to a Ministerial level. In 2019, the second phase of the Local Treatment of Urban Sewage streams for Healthy Reuse (LOTUS-HR) plant, a joint project, was launched in New Delhi.
Commitment to International Peace
India and the Netherlands re-emphasized their commitment to ensuring international peace, stability, and prosperity based on a multilateral order. They expressed eagerness for a successful India-EU Leaders’ Meeting scheduled in May 2021 in Porto, Portugal.
India’s Stand
India acknowledged the Netherlands’ support for the International Solar Alliance (ISA) and Coalition for Disaster Resilient Infrastructure (CDRI), both Indian Initiatives. Additionally, they welcomed the Netherlands’ Indo-Pacific Policy and expressed interest in collaborating with the country during India’s G20 Presidency in 2023. A fast track mechanism for investment promotion was also considered, which could boost the strong economic cooperation between the two nations.
India-Netherlands Relation
The economic partnership between India and the Netherlands is a fundamental aspect of bilateral ties. In financial year 2018-19, Netherlands was the third largest investor in India with USD 3.87 billion inflow across varied sectors. The Netherlands also stands to be the second largest destination for foreign investment by Indian companies. It is currently India’s fifth-largest trading partner in the European Union.
Historical and Cultural Relations
The Indo-Dutch relations date back to more than 400 years. Regardless, these official relations have been cordial and friendly since their establishment in 1947. Cultural engagement has been thriving with the Netherlands being home to the largest Indian community in the European mainland. A growing Indian student and professional community in the Netherlands is contributing to a stronger cultural bond and deeper technological partnership.
Way Forward
The Netherlands and India have yet to achieve their full potential regarding collaborations. Considering the geopolitical and economic necessities of both nations, there is vast room for improvement. Engagement at the highest levels along with enhanced economic and defense cooperation is essential to reach new heights in their relationship. Over the next five years, Dutch companies operating in India will be instrumental in helping India realize its vision of a USD 5 trillion economy.