During the visit of Prime Minister Modi to the Netherlands last June, he launched together with Dutch Prime Minister Rutte, the “India-Netherlands Financial Corridor”.
The “India-Netherlands Financial Corridor” is working both ways :
In our work at the Netherlands Embassy, we have noticed that for the introduction of technologies into the Indian economy, huge volumes of investment capital are needed.
As far as capital for private investments is concerned, the Netherlands already plays an important role, being the 4th largest source of Foreign Direct Investment for India.
But for investments in India’s public infrastructure and agriculture infrastructure we have to mobilize more European and Dutch private and public capital. From sovereign funds and pension funds for example.
This is the first stream of the INFC: capital flows from the Netherlands to India.
Twenty percent of all India’s exports to Europe, enter Europe through the Netherlands.
India is the 5th largest source of FDI for the Netherlands, many Indian companies choosing the Netherlands as the location of their European head office or distribution center.
And then, of course, with the new flights of Jet Airways, the total number of daily, direct flights between India and the Netherlands goes from 1 in the beginning of 2016 to 5 at the end of 2017.
We can strengthen that “hub role” of the Netherlands even further. We need to create the eco system for Indian companies and banks -from India and from the UK - to establish themselves in the Netherlands.
ASSOCHAM and the Indian Institute of Chartered Accountants (IICA) already have their European head office in the Netherlands and Amity Universities just announced that they will open a school for expatriate pupils.
This is the second stream of the INFC: Indian institutions and banks from India (and the UK) settling in the Netherlands and by doing so creating the eco system in the Netherlands to be the best alternative for the UK post-Brexit..
The India Netherlands Financial Corridor is a platform, a reference group and I am very happy that the Indo Dutch Chamber of Commerce and Sciences (IDCBS) plays an active role on how to increase both flows of the India Netherlands Financial Corridor.
Indo Dutch Financial Corridor (IDFC)is a platform that will boost the financial sector opportunities for Indian companies in The Netherlands and vice versa.
IDFC through its activities will enhance the position of The Netherlands in the EU market as the Financial Hub for Indian companies on one side and it will enhance position of India in Dutch market by showcasing relevant opportunities in financial sector. IDFC was launched by Maarten van der Berg, Vice Minister, Ministry of Economic Affairs of the Netherlands on 18th May’2017 at residence of Dutch Ambassador H.E. AlphonsusStoelinga in presence of various key stakeholders.
IDFC brings key stakeholders in India-Netherlands business together to promote opportunities in financial sector between India and the Netherlands. This platform is managed by ASSOCHAM Europe, Indo Dutch Chamber of Business and Sciences and ICAI Netherlands.
IFDC is supported by NFIA, Amsterdam inbusiness, RVO, Dutch Embassy, Indian Embassy and various other relevant decision making bodies involved in trade and economic relations between India and The Netherlands.
With increasing trade between The Netherlands and India, IDFC will be an excellent catalyst to boost the overall relations.
