GIBF E Magazine AUG-SEPT-2019 GIBF The Business Tycoons Magazine Aug-Sept | Page 29

Investment in Netherlands
In the UNCTAD 2018 World Investment Report, the Netherlands was ranked the sixth country in the
world (and first among European nations) for inward FDI flows in 2017, losing a place compared to
the previous year. In 2017, FDI influx to the Netherlands reached almost USD 58 billion, a decrease
of 32% from 2016, following the global trend. Total FDI stocks stood at USD 974.7 billion, roughly
127.8% of the country's GDP (with a 17% increase year-on-year). The main investing countries are
the US (20.5% of total stocks), Luxembourg (13.9%), United Kingdom (9.5%) and Switzerland
(5.8%). The vast majority of investments are allocated in the financial and insurance services
(80.8%), with the manufacturing sector also playing an important part (12%).
Strong Points
Highly developed communication and transport infrastructures
A qualified, productive and multilingual workforce that makes it suitable for export trade
A strategic geographical location, which makes it a gateway to the main European markets
Exports are diversified and external accounts are in surplus thanks to export-friendly structures
and infrastructure.
Weak Points:
High costs of the workforce
The small size of the internal market
A great dependence on the world economic situation and, in particular, the EU
Government Measures to Motivate FDI:
Since January 2007, the Dutch tax environment for international companies has become even more
attractive. For example, the corporate tax rate has been lowered to a rate well below the EU average.
Similarly, the new quadripartite government coalition is continuing its efforts by introducing an
expansionary fiscal policy providing for a further decline in income tax and increased spending in the
areas of social affairs, defence and education. The declared goal is to increase household spending
and thereby mitigate one of the main weaknesses of its internal market. All government measures can
be consulted on the website of the Netherlands Foreign Investment Agency.
SMARTER
INVESTING:
Experience &
Discipline
IMPORT-EXPORT
The main commodities
exported by India to
Netherlands: petroleum
oils,medicaments,
grapes, fresh or dried .
The major commodities
imported by India from
Netherlands : polyacetals,
ferrous waste aluminium
waste and scrap.
INDIA NETHERLANDS
TRADE RELATIONS
India and the Netherlands
have a bilateral trade of
US$ 8.77 billion. Indian
Exports to the Netherlands
grew at 14.7%, while
Indian Imports grew at
18.2%. During the current
financial year, FY 2018-
2019, total two- way trade
stood at US$6.28 billion.
Netherlands GDP Growth Rate
Consulate General of
the Kingdom of the
Netherlands
1st floor, Forbes Building,
Charanjit Rai Marg,
Azad Maidan, Fort,
Mumbai 400 001
India