Indo-Dutch Business Seminar
November 25, 2002, New Delhi

Speech by H E Mr. Joop Wijn, Hon'ble Minister of Foreign Trade, Govt. of Netherlands

Ladies and Gentlemen,

India is a beautiful country, rich in history, nature and culture. But above all, rich in entrepreneurial spirit. And that is something that binds us. Trade and enterprise have coursed through the veins of both our countrymen for centuries, and that offers a wealth of opportunities.

Over the past few days, this has been demonstrated again and again during my visit here.

This is the first time that a joint trade mission has been initiated at the initiative of Economic Affairs and Development Cooperation.

The purpose of this joint mission is to enter into a dialogue with India regarding the promotion of direct overseas investments and a good entrepreneurial climate.

The underlying intention is that these will contribute towards sustainable economic development. Furthermore, the mission also serves to promote trade, investments and cooperation between the Netherlands and India.

After China, India is the largest emerging market. Worldwide, India belongs to the group of fastest growing economies, with a growth of 5 to 6% per year.

India has the 13th - largest economy in the world and is the third-largest in Asia after Japan and China, but ahead of South Korea.

India has succeeded in keeping its head well above water at difficult times, for example during the Asia crisis.

The Netherlands attaches great importance to the bilateral economic relations it has with India.

This a expressed through the various visits back and forth, such as the visit of my predecessor Mr. Ybema with the trade mission in January 2000 and the recent visit by Minister Maran of Industry and Trade to the Netherlands with a large number of company representatives in February 2002.

Also, the business community has no difficulty in finding its way to India. Some 2400 companies did business in India in 2001. In addition, 108 Dutch companies are based in India. I have the pleasure of meeting a large number of you during this visit.

Dutch goods export to India amounted to 0.2% of the overall Dutch export in 2001, with a total turnover of €537 million. Industry, with chemical products, machines and transport material represented the lion's share of this trade volume.

Despite the fact that Dutch export to other Emerging Markets in Asia showed a drop in 2001, export to India remains constant. If we consider the origin of Indian imports, then the Netherlands assumes a modest 16th place.

Dutch goods import from India has shown a rising trend in recent years, with a total import volume of €881 million in 2001. This concerns 80% industrial products, representing manufactured goods such as clothing, yarn, textiles and chemical products, and 20% agricultural products.

In the period 2000 - 2001, the Netherlands achieved 11th place as the destination country for Indian exports.

The Netherlands is a major investor in India. In the period 1991-2001, the Netherlands was the seventh-largest investor.

In 2001, the total volume of Dutch investments in India was € 618 million. An interesting development is that the member states are determining the local investment climate to an increasing extent.

Although, based on the figures, the Netherlands is a principal trade and investment partner of India, there is still much room for improvement. During our visit, it has become evident that Dutch companies like to do business with India, which I applaud.

We provide expertise and know-how in many fields, from logistics to finance, and from distribution to water management.

The companies that have accompanied me on this mission are expert in their field and combine this with a good dose of entrepreneurial spirit.

I have now arrived at the most important principle of the mission : Business for Development. How can we, together with you, the business community, join forces in order to intensify trade and investments and in this way promote sustainable economic growth?

There are a large number of industries where many opportunities are available for development, such as the capital goods sector, infrastructure, port development, the environment, the medical sector, ICT and the chemical industry. These are sectors where Dutch companies can offer considerable added value.

Market access and market forces are essential conditions for the development of the private sector. In the first place, this concerns better access for Indian products on the international markets.

The European Union plays an important role, as they must give a good example with regard to global trade liberalisation.

As Minister of international trade, I regard this as an important personal task to fulfil. The Netherlands is keen to be bridge builder for India to the rest of Europe. We not only offer our own strong sales market, but also good hinterland connections with North-West Europe.

Where it concerns global trade liberalisation, I attach great importance to speeding up the negotiations with a view to the 5th Ministerial Conference planned for 10-14 September 2003 in Cancun.

The Netherlands' trading spirit means that is a strong advocate of trade liberalisation. I can therefore concur with the demand made by India, amongst other countries, when it comes to broader market access for textiles and a more transparent approach to anti-dumping.

A successful WTO round is in the interests of all the participating countries.

The improvement of market access and market forces also applies to the Indian market. India will also have to make greater effort to open its own market and improve regulation of the market.

The Indian economy is still regarded by many companies as being quite closed, and it is the promotion of private investments in particular that offer the means to stimulate development.

A good entrepreneurial climate for both Indian and overseas companies is another prerequisite for realising sustainable economic development.

India has much to offer the Netherlands. A highly skilled population and an enormous market and labour potential.

In short: India, a land rich in opportunities. It has one of the most rapidly growing economies in the world, and the limits have not yet been reached.

India offers an important sales market for Dutch companies, with a growing middle class, representing about 50 million people.

Although the Indian government is gradually opening the market to international trade and investments, a critical aside must nevertheless be made.

Many Dutch companies encounter difficulties when doing business.

This concerns the extensive corruption, the slow rate of economic reform, the rigid labour regulations and the deficient infrastructure. If the Indian market is willing to open up even further, then an entrepreneurial climate will be created that no good entrepreneur can afford to ignore.

And nor can we. This mission and the establishment of many Dutch companies in India is proof of that.

It is only right that the Netherlands is one of the largest investors in India, and that is a good thing. Enterprise is good for development. It creates jobs and prosperity.

You - companies from the Netherlands and India - can build further on that: by entering into trade relations, or perhaps even joint ventures. By sharing know-how and expertise, enhancing your opportunities and being stronger together.

This seminar offers an ideal opportunity to make it happen. You should be able to find your own counterpart amongst the companies present here today. Here are the people with the know-now, plans or investments you are seeking.

Make good use of that. It is beneficial for you, your company and your country, and, even better: for our collective prosperity.

Ladies and Gentlemen,

I don't think you need any more encouragement. I am sure that today, too, fruitful discussions will be held. The past days have shown that the Indian and Dutch Governments and businesses understand each other very well and are good partners.

In short, there is every reason to have confidence in a great future.

Let us - India and the Netherlands - join forces to make sure of that.