India–Netherlands: Strengthening Bilateral Cooperation and Strategic Ties

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Background

• India and the Netherlands established diplomatic relations in 1947, completing 75 years of diplomatic ties in 2022.
• Both countries share strong political, economic and trade relations, supported by regular high-level visits and cooperation in various sectors.
• Water, Agriculture and Health (WAH) are the three key areas of cooperation between India and the Netherlands, along with technology and innovation, to promote sustainable development and strengthen bilateral ties.

Key Areas of Cooperation

• Renewable Energy: India and the Netherlands cooperate in renewable energy and climate change initiatives. The Netherlands signed the Framework Agreement of the International Solar Alliance (ISA) in May 2018. India is one of the convening countries of the Global Commission on Adaptation (GCA), headquartered in the Netherlands. The Netherlands also joined the Coalition for Disaster Resilient Infrastructure (CDRI) in 2021.

• Science, Technology and Space Cooperation: The Netherlands Organization for Scientific Research (NWO) works with major Indian research institutions, including the Department of Science and Technology (DST), Department of Biotechnology (DBT), and Ministry of Electronics and Information Technology (MeitY). In February 2025, both countries held the 9th Meeting of the Joint Working Group on Science and Technology in New Delhi to strengthen research and technological cooperation.

• Strategic Partnership and Indo-Pacific Cooperation: India and the Netherlands agreed to elevate their bilateral relationship to a Strategic Partnership for 2026–2030, focusing on regular high-level discussions and stronger cooperation in key sectors. The Netherlands’ 2020 Indo-Pacific guidelines identify India as an important partner. Both countries support a free, open and inclusive Indo-Pacific region.

• Trade and Commercial Relations: Trade and investment are important pillars of India–Netherlands relations. The Netherlands is India’s 11th-largest trading partner globally, its third-largest export destination for goods worldwide and the largest in Europe. In FY 2024–25, bilateral merchandise trade reached USD 27.8 billion, accounting for around 2.40% of India’s total merchandise trade. The Netherlands is also the fourth-largest investor in India.

• Ports, Shipping and Inland Waterways: India and the Netherlands signed a Memorandum of Understanding (MoU) on Ports, Maritime Transport and Logistics in 2008, which was most recently extended in October 2025. Cooperation focuses on research and development, shipbuilding, innovation, sustainable shipping and maritime logistics.

• Agriculture and Food Processing: Agriculture is a key area of bilateral cooperation, supported by a Joint Working Group. Both countries have discussed progress towards establishing 25 Centres of Excellence (CoEs) in agriculture and horticulture. They have also agreed to explore cooperation in the seed sector through a dedicated work plan to improve coordination and implementation.

• Healthcare and Public Health: India and the Netherlands cooperate through a Joint Working Group under their MoU on Healthcare and Public Health. Their partnership focuses on research into emerging health challenges, particularly communicable diseases and antimicrobial resistance (AMR). The healthcare cooperation MoU was most recently extended in 2025.

• Indian Diaspora and Students: The Netherlands is home to the largest population of people of Indian origin in mainland Europe, with approximately 300,000 people of Indian origin, including around 200,000 members of the Surinamese Hindustani community. The Indian diaspora is well integrated into Dutch society and plays an important role in strengthening cultural, educational and people-to-people ties between the two countries.

Importance of the Partnership

• Trade and Economic Cooperation: The Netherlands serves as an important gateway for Indian businesses to access European Union (EU) markets. At the same time, Dutch companies benefit from India’s large consumer market, skilled workforce and growing business opportunities.

• Renewable Energy and Climate Change: The Netherlands’ expertise in water management and renewable energy, combined with India’s growing clean energy sector, creates opportunities to reduce carbon emissions, promote green growth and improve climate resilience.

• Stronger and More Resilient Supply Chains: Cooperation in semiconductors, smart manufacturing and digital infrastructure can help both countries build reliable supply chains, reduce dependence on a single country and strengthen technological security.

• Indo-Pacific Cooperation and Strategic Partnership: India and the Netherlands share a common vision of a free, open and rules-based Indo-Pacific region. Their cooperation connects India’s regional role with the Netherlands’ maritime interests, helping promote regional stability, security and international cooperation.

Challenges

• Impact of the EU’s Carbon Border Adjustment Mechanism (CBAM): The EU’s carbon tax policy may increase costs for Indian exports, especially steel, aluminium and other carbon-intensive manufactured goods, making them less competitive in the European market.

• Export Controls and Trade Barriers: Strict Western restrictions on the transfer of critical technologies may create challenges for India in accessing advanced technologies and strengthening industrial cooperation with European countries.

• Delays in Infrastructure Projects: Large-scale urban water management and infrastructure projects in India may face delays due to bureaucratic hurdles, coordination issues between different levels of government and difficulties in local implementation.

• Differences in Foreign Policy Priorities: The Netherlands’ focus on NATO and European security may sometimes differ from India’s emphasis on strategic autonomy and security cooperation in the Indo-Pacific. These differences could create challenges in aligning their geopolitical priorities.

Conclusion

India–Netherlands Relations: From Trade Cooperation to a Technology-Driven Strategic Partnership: The relationship between India and the Netherlands has evolved beyond traditional trade and economic cooperation into a broader partnership focused on technology, innovation, renewable energy, digital transformation and sustainable development. Both countries are strengthening collaboration in areas such as semiconductors, artificial intelligence, water management, healthcare and green energy. This growing partnership creates new opportunities for investment, research, job creation and long-term economic growth.

Promoting Free Trade and Sustainable Economic Growth: India and the Netherlands have significant opportunities to reduce trade barriers, improve market access and strengthen supply chain connectivity between India and the European Union (EU). By making trade policies more efficient and aligning trade mechanisms with climate goals, both countries can encourage green investments, promote clean technologies and support low-carbon industries. Such cooperation can contribute to sustainable economic growth, stronger trade relations and climate resilience across Europe and the Indo-Pacific region.