Come Tuesday, 27 July, and the Netherlands will host Prime Minister Narendra Modi on a working visit. The visit to the Netherlands, which will follow PM Modi’s first visit to the United States since President Donald Trump took over, won’t just carve a new path for India-Dutch bilateral ties, but will also bolster their respective positions on the global stage as influential economic powers. PM Modi’s meeting with his Dutch counterpart, Mark Rutte, at The Hague will focus on the benefits India can draw from the Netherlands’ knowledge and expertise in areas such as agriculture, life sciences and healthcare, ports, logistics and water and waste management.
In the field of water management, a Memorandum of Understanding (MoU) between the two governments has already been approved by the Union Cabinet, chaired by PM Modi. The MoU seeks to benefit bilateral ties between the two nations by focusing on river Ganga and enhancing river basin management, pollution control, flood management, among other things.
The two nations already serve as important sources of economic growth, entrepreneurial opportunities and innovation for each other. The political ties between the two nations are also close, with India and the Netherlands cooperating on global issues ranging from governance of cyberspace to the governance of the seas. The Netherlands also firmly supports India’s entry to weapon export control regimes such as the Missile Technology Control Regime (MTCR) and the Nuclear Suppliers Group (NSG). In fact, it was during the Netherlands’ chairmanship of the MTCR that India was welcomed as a member country.
Additionally, fresh winds are blowing in the 19-nation Eurozone economy of which the Netherlands is a core constituent, with perky growth rates during the first three months of 2017. The promising political landscape of Europe, that recently saw Dutch PM Rutte’s re-election followed by Emmanuel Macron’s rise to the French presidency, also makes this a good time for PM Modi to start things afresh. To attain a better understanding of how and why the two nations are vital economic, political and cultural entities for each other, it makes sense to list some relevant points:
Why the Netherlands is important for India: The Netherlands is the fourth largest FDI source for India and serves as the hub for Indian exports in Europe, even before Brexit. With 20% of Indian exports to Europe entering through the Netherlands, it also stands as a giant stakeholder in sectors like agriculture, life sciences, healthcare, ports, logistics and water and waste management. The Netherlands is already supporting initiatives like the Clean India campaign and the “Make in India” campaign through multiple projects, including one in Haryana, which has Dutch innovators working towards water-efficient high-yielding crops.
The most important potential for collaboration and business is in the agriculture sector. India wants to double its food production, while the Netherlands has the most efficient and intensive agriculture in the world. In India, some 30% of the farmers’ produce perishes before reaching the consumer. The Netherlands is at the forefront of the food chain and cold storage.
The 2015 edition of the World Economic Forum’s Global Competitiveness Index saw the Netherlands secure the third rank in areas of education and infrastructure.
Why India is important for the Netherlands: India is the fifth largest source of FDI for the Netherlands, with economic ties between the two nations growing with each passing year. Direct flights between India and the Netherlands will have increased from one at the beginning of 2016, to five by the end of 2017. With the outflow of Indian tourists to the Netherlands already up by 30%, the addition of more daily direct flights (three by Jet Airways) means more students, more businessmen and more tourists moving in both directions.
Why the visit comes at an opportune moment for both the countries: With the Netherlands looking to establish itself as India’s “Gateway to Europe”, Indo-Dutch trade relations might just get a fresh boost after PM Modi’s visit. The meeting will also open newer avenues after Dutch PM Rutte’s re-election in March this year.
With direct connectivity between the two nations improving with each passing year, it might be time to explore the lucrative travel, education and innovation opportunities both nations have in store for each other.
The visit also comes at an opportune time in relation to global governance challenges of mutual concern. Whereas the Paris Climate Accord is facing a setback, the Netherlands sees eye to eye with India in vocally emphasising its crucial importance. Similarly, the countries are able to find one another regarding cyber security challenges, with India following the Netherlands as the next host for the Global Conference on Cyberspace (GCCS, 23-24 November 2017) and co-chairing together with the Netherlands of the Global Forum for Cyber Expertise.
With the Netherlands and India being strong economic partners for each other and the values of democracy, pluralism and multiculturalism running through the veins of both the countries, this visit is crucial and a vital follow-up to PM Rutte’s last visit to India in June 2015. The latter visit reinvigorated ties, after the long interval following the last visit at the prime ministerial level by Dr Manmohan Singh in 2004.
PM Modi’s trip to The Hague comes with immense hope for areas of innovation, trade and tourism and might just be able to pen a new chapter for the perpetually evolving story shared by India and the Netherlands.
Mini Dixit is Senior Politics, -Cultural Affairs and Press Officer at the Netherlands embassy.