Current Economic Situation has not Reduced Interest in India, Says Netherlands Minister India, Netherlands set up Joint Economic and Trade Committee

In a meeting with the Union Minister of Commerce & Industry Shri Anand Sharma here today, Ms. Lilianne Ploumen, Minister of Foreign Trade and Development Cooperation, Netherlands, strongly asserted that despite the gloomy economic situation worldwide, “the economic situation is still better in India than in most of the developed nations.” She conveyed Shri Sharma that the “recent downturn has not reduced the interest of Netherlands in India.” The Netherlands Minister is here in India with forty Dutch entrepreneurs to further boost trade ties between the two nations.

India and Netherlands have also agreed to set up a Joint Economic and Trade Committee (JETC) which will provide a platform for both sides to engage on investment & trade issues. Shri Sharma further conveyed that given the increasing economic and trade engagement, there is a need for a structured mechanism for institutional interaction, and as a result this Committee should “eventually be upgraded to the level of Joint Economic Council.”

Shri Sharma said that India and Netherlands should cooperate in areas like water management, agro processing, urban infrastructure, preparation of sports infrastructure, waste management and sanitation. Speaking to media persons after the meeting, Ms. Ploumen said that agriculture and healthcare are the key areas of cooperation between the two nations. Apart from it, she added, “urban planning, infrastructure works, water management, which we are very famous for, are the areas where we want further cooperation.”

On the issue of India-European Union Broad based Trade and Investment agreement (BTIA), Shri Sharma said that “we have a very good agreement on the table.” Shri Sharma reiterated that Mode IV in Services and Data Secure status are very important for India. He also stressed the need to embrace incremental approach. On this issue, Ms. Ploumen said that “the Netherlands is a country that really relies on free trade and free trade agreements. And as a country, we are very much looking forward to finalise free trade agreement between the EU and India and to make sure that we can all address those issues.”

Both the leaders also discussed matters related to food security. Shri Sharma informed her of the legislative developments in India regarding food security. Referring to his recent meetings with the US Trade Representative Mr. Michael Froman in Washington and Brunei, Shri Sharma pointed out that WTO negotiations should take care of the food security issues. G-33 proposal in this regard needs to be given due consideration. He also stressed the need for internal balance with regard to Trade Facilitation proposals.

Netherlands is India’s 4th largest trading partner in Europe. India’s exports to the Netherlands were USD 10 billion in 2012, while the imports were USD 2.63 billions during the same year. Netherlands is the sixth largest investor in terms of FDI inflows into India with FDI flow of around USD 9.37 billion, which is 4.72% of total FDI inflows into India during the period April 2000 to June 2013.