Country Introduction

The Netherlands is situated in northwestern Europe and borders on Germany to the east, Belgium to the south, and the North sea to the west and north. The name "Netherlands" means "Low Lands" in reference to the nation's topography as an alluvial plain. Differences in altitude are minimal. Almost one-quarter of the landmass is below sea level, protected from the encroaching sea by dikes and dunes. The Netherlands is also a relatively small country (13,297 square miles [34,425 square kilometers]) without surface water. The Netherlands is divided in twelve provinces. Amsterdam (730,000 inhabitants) is the capital, but the government meets in The Hague (440,000 inhabitants). Utrecht (235,000 inhabitants) is the transportation hub, while the port city of Rotterdam (590,000 inhabitants) constitutes the economic heartland. These four cities together with a string of interconnected towns, form the Randstad, which has a population of 6,100,000.

 The official language of the Netherlands is Standard Dutch. This language is used in all official matters, by the media, and at schools and universities. Dutch closely resembles German in both syntax and spelling. It freely borrows words and technical terms from French and especially English. The complex relationship of the Dutch people with the sea is notable. The sea has historically been both adversary and ally. The Dutch used to repel foreign invaders by deliberately piercing river dikes. However, if not for the extensive waterworks, 65 percent of the Netherlands would be flooded permanently. The Dutch take great pride in their struggle against the sea and reclaiming of land, which they view as mastery over nature. . Dutch national identity emerged during the sixteenth and seventeenth centuries, especially in the struggle for independence from Catholic Spain during the Eighty Year War (15681648). The Dutch people received independence from the House of Habsburg in the Treaty of Munster in 1648. The Netherlands was temporarily unified with Belgium after the Congress of Vienna. The Catholic Belgian elite sought its freedom from the Protestant Dutch, and Belgium became independent in 1839. The Netherlands was one of the poorest nations in northwestern Europe by 1750. In 1813, at the end of the French occupation (17951813), William I of the House of Orange-Nassau accepted the throne and became the first Dutch king. The Dutch nobility never had a position of prominence and influence in Dutch society. Only after constitutional reforms in 1851 did the nation begin its ascent to industrialization. . The Netherlands had a population of 15,898,331 in 2000. It is the most densely populated country in Europe (1,196 inhabitants per square mile [462 per square kilometer] in 1996). There are 2,700,000 foreign residents. The majority, approximately 780,000, originate from the European Union, including 432,000 Germans. Other sizable groups are Surinamese (297,000), Turks (300,000), Moroccans (252,000), and Antilleans (99,000). The average life expectancy in 1996 was 75.2 years for men and 80.7 years for women, while the infant mortality rate was 5.1 per 1,000. The rapid expansion of the Dutch merchant fleet enabled the establishment of a worldwide network of trade relations that created naval dominance and increasing wealth for the merchant class. Handicapped by a small population (670,000 inhabitants in 1622) and besieged by growing English and French might, the Dutch Republic began to decline. Paradoxically, at that time, the conspicuous consumption of the wealthy merchant class

 A woman selling cheese at the market in Alkmaar. The Netherlands has an advanced free market economy. resulted in the so-called Golden Age. Stately canal houses were constructed in Amsterdam, and great works of art were commissioned. The Netherlands has an advanced free market economy. The Dutch pride themselves on having an economy that performs smoothly, known as the polder model, which hinges on periodic negotiations among labor unions, employers' associations, and the government to control wage scales and taxes. The labor force consisted of 7,097,000 persons in 1999; the unemployed numbered 292,000. The annual gross national product (GNP) amounted to 323 billion euros ($373 billion) in 1997. Imports totaled about 55 percent of GNP; and exports totaled 61 percent. The average income after taxes is 20,000 euros ($23,160). The Netherlands never had a major wave of industrialization but remained firmly oriented toward agriculture, trade, and service industries. Two percent of the Dutch population are employed in the highly mechanized agricultural sector (which includes the fishing industry), 24 percent are employed in the industrial sector, and 74 percent work in service industries. Dutch exports can be divided into five main categories: agricultural products, 15 percent; natural or enriched fuels, 6 percent; chemical products, 17 percent; industrial products, 12 percent; and machinery, 24 percent. Germany is the principal trading partner. Two-thirds of Dutch exports go to five nations: Germany, Belgium, France, the United States, and the United Kingdom. Those five trading partners account for 61 percent of Dutch imports. Dutch children are praised for successful performance at school. It is firmly believed that a good education and fluency in English are a sure road to success. Many children thus seek additional education after finishing high school. Approximately 70 percent of the adult population receives formal education after high

school, and 20 percent of the adult population has received higher vocational training (HBO) or attended a university. The main political parties are the PvdA (social democrats), VVD (conservatives), and CDA (Christian democrats). These parties are supplemented by a large number of smaller parties, ranging from socialist and nationalist to religious and green. Dutch cabinets are invariably coalitions of the major political parties. Open debate and negotiation toward consensus are part of Dutch political culture. Principal Government Officials Head of State--Queen Beatrix Prime Minister--Mark Rutte Minister of Finance--Jan Kees de Jager Deputy Prime Minister and Minister of Economic Affairs, Agriculture and Innovation--Maxime Verhagen Foreign Minister--Uri Rosenthal Defense Minister--Hans Hillen Ambassador to the United States--Renee Jones-Bos Ambassador to the United Nations--Herman Schaper

Demographic Profile

Geography Area: 41,526 sq. km. (16,485 sq. mi.); about half the size of South Carolina. Cities: Capital--Amsterdam (pop. 767,457). Other cities--The Hague, seat of government (488,553); Rotterdam (593,049); Utrecht (307,081). Terrain: Coastal lowland. Climate: Northern maritime, with cool summers and mild winters. People Population: 16.6 million. Nationality: Noun--Dutchmen and Dutchwomen. Adjective--Dutch. Ethnic groups: Predominantly Dutch; large minority communities are Moroccans, Turks, Surinamese, and Dutch Caribbean. Religions: Largest groups are Roman Catholic, Protestant, and Muslim. Language: Dutch. Health: Infant mortality rate-4.4/1000 Education: Year compulsory-13. Attendance-nearly 100%. Literacy-98% Civilian employment (2009, 7.887 million): industry--16.6%; services--81.8%; agriculture-1.6%. Life expectancy- 78.3 year for men and 82.3 year for women. Subdivisions: 12 provinces. Political parties: Christian Democratic Appeal (CDA), Freedom Party (PVV), Labor Party (PvdA), Liberal Party (VVD), Socialist Party (SP), other minor parties. Suffrage: Universal at 18.

Economy* GDP (2011): $705.7 billion. GDP growth (2011 est.): 1.6%. GDP per capita (2011): $ 42,300. Natural resources: Natural gas, petroleum, fertile soil. Agriculture (2% of GDP): Products--dairy, poultry, meat, livestock, flower bulbs, cut flowers, vegetables and fruits, sugar beets, potatoes, wheat, barley. Industry (24% of GDP): Types--agro-industries, steel and aluminum, metal and engineering products, electric machinery and equipment, bulk chemicals, natural gas, petroleum products, construction, transport equipment, microelectronics, fishing. Services (74% of GDP): Types--trade, hotels, restaurants, transport, storage and communication, financial (banking and insurance) and business services, care, and other. Trade (2010): Exports--$523.3 billion f.o.b.: machinery and transport equipment, chemicals, mineral fuels, processed food and tobacco, agricultural products. Imports--$468.4 billion f.o.b.: mineral fuels and crude petroleum, machinery, transportation equipment, chemicals, mineral fuels and crude petroleum, consumer goods, foodstuffs. Major trading partners (exports/imports--EU (74.0%/53.3%), Germany (24.2%/17.7%), Belgium (11.1%/9.6%), China (1.5%/9.3%), United Kingdom (8.04%/6.7%), and U.S. (4.6%/7.6%), and France (8.7%/4.5%)..

Sectors of the Economy Services account for about three-quarters of the national income and are primarily in transportation, distribution, logistics, and financial areas such as banking and insurance. Industrial activity generates about a fourth of the national product and is dominated by the metalworking, oil refining, chemical, and food processing industries. The agriculture and fisheries sector account for some 2% of GDP.

General Economic & Industries overviews

Overview Different economic sectors of selected country

Our objective is to focus on sectors outlined by the City of Rotterdam and Ministry of Trade: Agriculture Energy/Water Infrastructure Bio Medical/Pharma Logistics/Port Related Services Creative Industry/Media/Film ICT/ Information Technology

Dutch exports can be divided into five main categories: agricultural products, 15 percent; natural or enriched fuels, 6 percent; chemical products, 17 percent; industrial products, 12 percent; and machinery, 24 percent. Germany is the principal trading partner. Two-thirds of Dutch exports go to five nations: Germany, Belgium, France, the United States, and the United Kingdom. Those five trading partners account for 61 percent of Dutch imports. The Dutch economy is dependent on foreign trade. Like most developed nations, during the second half of the 20th century the Dutch economy underwent a transformation in which agriculture and industry declined in importance while services came to dominate the economic activity. Nonetheless, the nation's fertile soil and deposits of natural gas and oil mean that both agriculture and industry remain competitive with similar sectors in other nations. Agriculture and fishing are highly profitable even though they account only for a small percentage of employment and of the nation's GDP. Since the 1940s, Dutch agriculture has become highly mechanized and technologically sophisticated. Dutch farmers use the latest technology to maximize crop yields and livestock production. Techniques such as scientific soil analysis and increased use of fertilizers and pesticides have been largely responsible for doubling crop yields during the century. Crops and livestock provide both exports and products which fuel the nation's domestic food-processing industries. Despite the small size of the country, the Netherlands is the world's third-largest exporter of agricultural products. The main industries in the Netherlands are agribusiness , metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, and microelectronics. The Dutch have significant oil and natural gas fields in the North Sea. This forms the basis for the nation's large energy industry. With such resources

companies such as Royal Dutch Shell have gained markets around the globe. Most of the kingdom's energy resources are exported to EU countries. Other major industrial employers include the Dutch State Mines and the Royal Netherlands Blast Furnaces and Steelworks (both of which are partially-owned by the government). Construction accounts for about 6 percent of GDP and is partially propelled by government spending on infrastructure projects. Services dominate the Dutch economy. The main segments of the service sector are transportation, goods distribution, financial services, and tourism. One of the areas of greatest growth, however, is telecommunications, especially personal communications services. Computer services are also experiencing dramatic growth. Small companies which specialize in various types of service have done the best in the nation's economy over the past decade, but there is increasing consolidation in some areas of the service sector as large corporations buy or merge with the more profitable firms.

General overview of Trade and Commerce

Emissions trading is a flexible policy instrument which the Dutch government is using to improve the living environment. In the Netherlands there are two emissions trading systems, one for emissions of carbon dioxide (CO2) and one for emissions of nitrogen oxides (NOx). Characteristics of emissions trading in the Netherlands 1. An emission permit: obligatory participants draw up a monitoring protocol that they then submit for approval to the NEa. In the event of approval, the director of the NEa issues the company with an emission permit. 2. Receiving emission allowances: licensed companies are allocated emission allowances by the government. 3. Monitoring: during the emissions year companies monitor their emissions in accordance with a monitoring protocol. 4. Verified emission report: at the end of an emissions year, companies with an emission permit report their emissions to the NEa in an emission report. They have this report checked by a verifier. 5. Turning in of emission allowances: companies compensate the quota laid down in the emission report by turning in emission allowances to the registry. 6. The supervisor: in the Netherlands, the NEa supervises these two systems.

Almost 160 million people live within a 300-mile radius of Rotterdam. This includes more than half of the population of the EU. As a result, the Netherlands is perfectly positioned as a gateway for goods being imported into the EU. In addition, Dutch goods are easily exported throughout the region. In all, 80 percent of Dutch exports go to other nations within the EU and 70 percent of goods imported into the Netherlands come from the EU. Asia accounts for only 17 percent of the nation's exports and 7 percent of its imports. The largest individual destination for Dutch goods is Germany at 27 percent, followed by Belgium-Luxembourg at 13 percent, France at 11 percent, the United Kingdom at 10 percent, and Italy at 6 percent. Imports are divided between Germany with 20 percent of the total, Belgium-Luxembourg with 11 percent, the United Kingdom with 10 percent, the United States with 9 percent, and France with 7 percent. The Dutch are the ninth-largest trading partner with the United States and the third-largest in Europe. The United States has its largest trade surplus with the Netherlands, averaging US$10 billion per year.

The Netherlands leads its EU partners in issues such as trade liberalization and the privatization of key industries such as telecommunications and transportation. Thus, it is in a good position to continue its trade surplus. In 1999, its trade surplus in both goods and services amounted to US$18 billion. This represented a 6 percent growth rate over the previous year and accounted for 6 percent of the kingdom's GDP. Dutch exports are concentrated in products that tend to do well even during periods of recession. These exports include food and agricultural products and energy resources. In 1998, the Dutch exported US$169 billion worth of goods and services and imported US$152 billion. This represented a 5 percent increase in exports over the previous year and continued a trend of positive growth in exports which extends back into the 1980s. Services were the fastest growing exports and increased 6.9 percent in 1998, while the export of manufactured goods increased by 3 percent.

Trade (expressed in billions of US$): Netherlands exports 1975 1980 1985 1990 1995 1998 39.939 85.046 78.008 131.775 196.276 199.624 Imports 40.854 88.392 73.268 126.098 176.874 185.104

Present Trade Relations with India / Gujarat

Introduction :
Netherlands is one of the largest investor in India today, with longstanding connections that go back to several centuries.

India Netherlands Relations

1.Since 1947, Indo-Dutch relations have been excellent, marked by strong economic and commercial ties, based on foundation of shared democratic ideals, pluralism, multiculturalism and rule of law. Indo-Dutch relations have been multi-faceted and encompass close cooperation in various areas including political, economy, academics and culture. Since the early 1980s, the Dutch Government has identified India as an important economic partner. The relations underwent further intensification after Indias economic liberalisation in the 1990s with growing recognition of India as an attractive trade and investment partner. 2. In light of convergence of economic and political interests, the two countries see value in enhanced dialogue and have constantly striven to strengthen bilateral relations by leveraging each others strengths and are currently collaborating in strengthening and expanding the framework of cooperation in various areas like trade and investment, science and technology, information and communication technology, education and culture. 3. There have been periodic high-level exchanges including the visit of Prime Minister Dr. Manmohan Singh to Netherlands in 2004, followed by visits of Dutch Prime Minister Mr. Jan Peter Balkenende in January 2006 and the second State visit of Queen Beatrix to India in 2007. Other visits include:Visits from Netherlands: _ November 2007: Foreign Trade Minister Mr. Frank Heemskerk. _ February 2008: Transport & Water Mgmt Minister Mr. Camiel Eurlings _ February 2009: Foreign Trade Minister Mr. Frank Heemskerk _ October 2009: Social Affairs & Employment Minister Mr. Piet H. Donner _ April 2011: Infrastructure & Environment Minister Mrs. Melanie Schultz VHaegen. _ July 2011: Foreign Minister Dr. Uri Rosenthal _ November 2011: Minister of Agriculture and Foreign Trade Mr. Henk Bleker. Visits from India: _ March 2008: Minister of Science, Technology & Earth Sciences Shri Kapil Sibal _ May 2008: Minister of State Food Processing Industries, Shri Subodh Kant. _ June 2008: Minister of Overseas Indian Affairs, Shri Vayalar Ravi _ September 2008: Minister of Law & Justice, Shri H.R. Bhardwaj _ November 2008: President ICCR, Dr. Karan Singh.

_ November 2008: Finance Minister, Shri P. Chidambaram _ September 2009: Minister of Overseas Indian Affairs, Shri Vayalar Ravi. _ May 2010: Visit of Minister of State for Communication & IT, Shri Sachin Pilot _ September 2011: Minister of Overseas Indian Affairs, Shri Vayalar Ravi. _ April 2012: Minister of Shipping, Shri G.K.Vasan 4. With the new Dutch Government having taken over in October 2010 and as part of the outcome of the Foreign Office Consultations held in January 2011, a number of highlevel visits have taken place from Netherlands to carry forward the momentum of bilateral engagement at Ministerial level. These include visits by Dutch Minister of Infrastructure & Environment as well as by Mayors of Rotterdam, Amsterdam and The Hague with delegations. 5. Foreign Minister Prof. Dr. Uri Rosenthal made an official visit to India from 4-6 July 2011, at invitation of Hon'ble External Affairs Minister (EAM). Dutch FM and EAM had extensive discussions on wide range of bilateral, regional and international issues. EAM drew attention to opportunities for Dutch investment in logistics, water management and communications, as the two sides agreed to redouble efforts to enhance trade and economic ties. FM Rosenthal also met National Security Adviser to discuss issues of strategic importance. 6. Shri Vayalar Ravi, Honble Minister of Overseas Indian Affairs and Civil Aviation, visited Netherlands from 24-26 September 2011 and met Mr. Henk Kamp, Dutch Minister of Social Affairs & Employment to discuss bilateral issues. He also inaugurated the first Annual Diaspora Conference in The Hague on 25 September 2011. 7. Dutch Minister for Agriculture & Foreign Trade Mr. Henk Bleker visited India in November 2011. Mayor of City of The Hague Jozias van Aartsen visited New Delhi and Mumbai in December 2011 and had meetings with MOS(EA), MOS(HRD) and President of ICCR. Mayor offered six scholarships for Indian students to study at The Hague Academy of International Law in The Hague. New areas of enhanced bilateral cooperation were explored during visit of Dutch Trade Mission led by Mayor of Amsterdam E.van der Laan to Mumbai, Pune and Bangalore from 25-31 March 2012. This was followed by visit of Union Minister of Shipping Shri G.K.Vasan accompanied by Secretary (Shipping) and delegation to Netherlands from 1-2 April 2012, to attend the launch ceremony of a Dredger acquired by Dredging Corporation of India Ltd (DCI) from Dutch supplier - IHC Merwede at the Ijssel shipyard in Rotterdam.

Economic and Trade Relations 8. Trade and investment cooperation - a key component of India-Netherlands Relationship - has shown satisfactory growth over the years. Two-way trade has continued to grow steadily, and crossed Euro 5 billion mark in 2010. Netherlands remains among the

top ten partners of India in terms of trade volume with positive balance of trade in favour of India. It is also the one of largest investor in terms of foreign direct investment into India during the period April to 2000 to February 2011, amounting to US $ 5.618 billion (4.37 % of total inflows into India). Indian investments into Netherlands during 2008-09 amounted to $ 2788 million, which was 17.2% of total investments abroad from India. In 2009-10 the investments were $ 737 million.

NRI/PIO community
9. Netherlands has second largest population of people of Indian origin in Europe (next only to UK). It is home to about 220,000 Indian and Surinami Hindustani Diaspora, wholly integrated into Dutch society. Although their forebears left India nearly 150 years ago, the Hindustani-Surinami community has deep cultural links with India and is active in promoting cultural cooperation through well-established institutions. There has been a Member of Parliament from the community. Prominent Surinamese are members of Municipal Councils, like current Dy Mayor of Hague Municipality Mr. Rabin Baldewsingh.

Culture and Education

10. The two sides have had regular exchanges in cultural and educational fields including Indology, Arts and contemporary issues. Indo-Dutch cultural cooperation has been based on establishment of cultural institutions, exchange of scholars, cooperation and exchanges in Education & Science, Art & Culture, Literature and Mass Media.

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