India and the Netherlands established diplomatic relations way back in 1947. The relationship has steadily evolved from mutual trade to a much larger canvas of collaborations in myriad avenues. Prime Minister Narendra Modi’s visit this month has further cemented the ties to expand cooperation in water resources, semiconductors, innovation, defence, sustainability and mobility.
India and the Netherlands have now adopted the Roadmap of Strategic Partnership for the next 5 years. This road map is expected to enhance growth in fields of innovation, technology, water management, defence and sustainability. This aspect is further accentuated by India-EU Free Trade Agreement, signed earlier this year. Besides trade metrics of around 28 billion USD, the two nations have cultural ties which are probably, the edifice of the relationship. As India emerges as a large, growing economy and market in the Indo-Pacific, the Netherlands is central to being the logistics and technology hub of Europe.
The Netherlands is India’s largest merchandise export destination in Europe and the third largest in the world after the United States and the United Arab Emirates. In Financial Year 2024-2025, India exported $22.763 billion worth of goods to the Netherlands. The merchandise exports to the Netherlands account for 5 percent of India’s total merchandise exports. The merchandise imports from the Netherlands account for 0.57% of India’s total merchandise imports which are likely to undergo an increase in volumes, steadily.
Industry ecosystems of both countries are evolving to keep pace with the changing demand patterns. The supply chains are now far more complex, diverse, and optimized to meet the new structures. Indian semiconductor and electronics industry have undergone a sea change over the last two decades. These have primarily been in the product domain, the evolution of the retail channel and an enabling policy landscape.
A notable outcome of this partnership is signing of a Memorandum of Understanding (MoU) between Tata Electronics and ASML to advance the semiconductor manufacturing ecosystem in India. ASML is the world leader in production and development of lithographic machines, an integral part of any semiconductor fabrication endeavour. Through this partnership, ASML will enable the establishment and successful ramp up of Tata Electronics upcoming 300 mm (12-inch) semiconductor fab in Dholera, Gujarat. There is a vast scope of ASML establishing operations in India to cater to Asia Pacific as well.
Currently, while a significant share of Indian demand in semiconductors is met by imports, the Indian landscape is being ushered into an era wherein besides the design aspects, the manufacturing of these vital chips as well as several components is being indigenized through an astute policy support and incentivized production from the government of India. This is a critical arena for long standing partnerships between the two nations. Connecting the Dutch Semicon Competence Centre to Indian Semiconductor Mission will be crucial.
In any thriving democracy, the government, private sector and education system must work together to build a strong talent pool to meet the demands of the industry. International collaborations are the key to this overall effort. India with an enviable STEM education base has the potential to be the ‘Talent Powerhouse” of the world. The Netherlands has cutting edge universities with advanced research and development facilities which can be a key enabler to build and train joint technological workforce of the future. To this end, work on the Implementation of Memorandum of Understanding on Mobility and Migration will be the key to enabling outcomes in the future. Memorandum of Cooperation between Eindhoven University of Technology and University of Twente with six leading Indian technical institutes for a brain bridge in semiconductors has a potential to be very successful in the future.
The Netherlands is a world leader in water management. Enhanced cooperation on the Kalpasar Project in Gujarat which aims to construct a massive dam across the Gulf of Khambat could be another area of Indo-Dutch collaboration in the future. The structure will impound the waters of seven rivers that currently empty into the sea, creating a vast freshwater reservoir. There has been a significant progress in Urban Water Infrastructure Resilience program of the India-led global Coalition for Disaster Resilient Infrastructure (CDRI), through which the Netherlands shares its expertise. Establishment of a Centre of Excellence on Water under the Ministry of Jal Shakti, in collaboration with the Ministry of Infrastructure and Water Management, Government of the Netherlands, at the Indian Institute of Technology Delhi, as agreed by both nations is an important waypoint in this domain.
There is a large scope of collaborations in defense and space between the two countries. Maritime cooperation through naval exercises and involvement in the Information Fusion Centre – Indian Ocean Region (IFC-IOR) is a very enabling step. There is a huge scope for an increased cooperation in the Indo-Pacific Oceans Initiative (IPOI) and joint exercises for interoperability as well as jointness in military logistics can be configured for a long-term impact. With a highly developed space sector in India, expertise sharing and joint projects could be explored.
Sustainability and renewable energy are two sectors which are tailormade for Indo-Dutch collaborations. Sharing of best practices and deepening of knowledge and technology sharing will accrue a large impact on climate adaptation and mitigation. The joint working group on renewable energy which is being set up will promote knowledge of each other’s industrial ecosystems and facilitate industrial partnerships and cooperation in green hydrogen, bioenergy, bio-chemicals or circular feedstocks, renewables and battery storage. Enhanced cooperation in solid waste and water management, circular economy, Urban Active Mobility, zero emission transportation and urban sustainability are many more avenues of cooperation.
Technology and security are interrelated and with politics having its skin in the game- the chances of confrontation decrease as international collaborations is a crucial variable in the overall equation of geopolitics. Diversifying supply chains also comes with additional advantages of adaptation of technology, embracing of collaborative best practices and open-source communities, besides making technology more inclusive by bridging the digital divide.
Ideological conflicts and nuclear arsenals led to the erstwhile cold war. Technology, while driving Industry 4.0 and contributing to new domains for betterment of mankind, possesses the potential to unleash the ‘Coldest war’. In these uncertain and transactional times, India and the Netherlands can be a right example of partners in growth, despite geographical underpinnings. More collaborations between the two countries can be trailblazers in forging great impact for Europe and the Indian subcontinent in the future.
Anurag Awasthi is a veteran, and CEO of Escape Velocity Mediaworks. He is a known policy expert and a columnist who writes extensively on critical technologies, security and geopolitics. Views are personal.
