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

Welcome Address by Mr R S Lodha, President, FICCI

Her Excellency Mrs AMA van Ardenne, Hon'ble Minister for Development Cooperation of the Netherlands,
His Excellency Mr J G Wijn, Hon'ble Minister for Foreign Trade of the Netherlands,
His Excellency P F C Koch, Ambassador of the Netherlands in India
Distinguished Members of the Dutch Delegation,
Ladies and Gentlemen,

It is my proud privilege to accord a warm and heart welcome to Her Excellency Mrs van Ardenne and His Excellency Mr Jwop Wijn to this "Indo Dutch Business Conference" today. I also extend a warm welcome to the members of the visiting delegation from the land of bikes, dykes, windmills and blazing flower fields. I am extremely pleased that FICCI and The Royal Netherlands Embassy are jointly organizing this Conference.

If small is beautiful so is Netherlands. If small is commercially big it is Netherlands. If you are in search of a humane nation with empathy for all, it is India and the Netherlands share a long history of mutual economic and cultural interests and the multi-faceted Indo-Dutch relations have gained resilience, maturity and depth over the years. I am confident that our economic partnership will leapfrog in this century. I am happy that already our industry and businesses have joined hands to move our commercial and cultural relations to a higher orbit of growth.

Excellencies, as you are aware, India is already implementing second-generation reforms and there is a huge untapped potential to trade with and invest in India. We have several comparative advantages that investors can mobilise: productive and skilled labour, low priced locally sourced inputs and a reasonably stable infrastructure.

India is today one of the fastest growing economies in the world and as the world's second largest consumer base she provides an attractive destination for Dutch investments. India faces competition with confidence and welcomes FDI in almost all sectors of the economy.

Netherlands has a significant share in the total FDI approvals in India. Since the onset of liberalization, around 3.2% of FDI into India has come from the Netherlands. During last year, the situation was even more encouraging, Netherlands accounted for about 14% of all FDI approvals from April to November 2001. In cumulative terms, the Netherlands ranks 7th in terms of the number of approvals. There is tremendous scope for more investment in India. Keeping in view our strategy of developing different sectors of economy, we would welcome Dutch investment particularly in telecommunications, transportation industry, food processing and the services sector.

I would like to take this opportunity to request the Dutch investors to start implementing their approved projects. Telecommunications, Financial and Non-Financial Services and Food Processing Industries are the main sectors attracting Dutch investment. However, technology collaborations have been mainly in floriculture, electrical equipment, industrial machinery and chemicals.

Indian companies in turn can look forward to The Netherlands as a good base for expanding their European operations. The Netherlands represents not just a good market in its own right, but also as an excellent entry point for other markets in Western Europe.

Some of the globally renowned Dutch companies have entered key sectors after the initiation of the reform process in India. Today, perhaps all the major Dutch financial service companies are present in the Indian financial services sector.

While we are encouraged by these positive developments, there is still much scope for strengthening our commercial, economic and cultural interaction. This calls for a new vision of synergy between the two countries. It is time for us to focus on our complementarities in knowledge-based industries driven by research and development, since India is a remarkable resource of knowledge workers. It is time for us to focus on greater substance with specific sectoral thrusts. Agro-processing, floriculture, infrastructure areas of ports and inland waterways, airport modernisation projects, renewable energy are some of the key sectors where business linkages can be strengthened as not only the large companies have a stake but so do the small and medium enterprises of India and the Netherlands.

FICCI, India's apex business organization, representing 250,000 business units, which employ 20 million people, is a catalyst in the economic development of India since 1927. We have a long, cordial and constructive association with the Netherlands. FICCI had the privilege of hosting business meetings in honour of His Excellency Mr Wim Kok, the Hon'ble Prime Minister of the Netherlands when he visited India in 1999. FICCI, in conjunction with the Ministry of Industry, had organized a Technology Mission to the Netherlands in 1996 focussing on small and medium sectors in select areas of food processing and packaging, floriculture and pollution control equipment. Subsequently in 1997, to commemorate the 50th year of India's independence, FICCI along with the Indian Embassy in the Hague as well as Ministry of Commerce, Government of India, organized a "Made in India" exhibition in Amsterdam. Back-to-back with the Exhibition, FICCI in conjunction with the Ministry of Industry jointly organized an India Opportunity Seminar. This year in February, Mr Murasoli Maran, Minister of Commerce and Industry, Government of India was accompanied by a high powered FICCI Business Delegation to the Netherlands for the "Destination India" Seminar for exploring emerging opportunities for investments in the core sectors.

FICCI also enjoys excellent rapport with the business community of the Netherlands. Our Joint Business Council with VNO-NCW is more than a decade old.

I conclude by mentioning that, Excellencies your visit today will definitely impart momentum to our endeavours. During this Indo Dutch Business Conference new ideas will be generated and many useful new business contacts will be established fostering greater economic cooperation between our two great nations - a relationship which we are confident will go from strength to strength in the coming years.

Thank you.