Information about India

Below are few facts and figures about India. For more detailed general information about India, visit "Overview".

Unless stated otherwise, the information is sourced from the The Agency for International Business Cooperation (De Economische Voorlichtingsdienst (EVD)) and the Central Bureau of Statistics.

For the most up-to-date figures, please visit the website of CBS: http://www.cbs.nl/ and EVD: http://www.evd.nl/

Facts & Figures

Facts & Figures India

Government

Head of State

President Pratibha Patil

Prime Minister Dr. Manmohan Singh
Minister of Foreign Affairs Shri S.M. Krishna
Minister of Trade and Industry Anand Sharma
Minister of Finance Pranab Mukherjee
Form of Government Federal Republic

Demographic profile

Population growth 1,3% per year (2004 - 2015)
Population 1,148,000,000
Birth rate (per 1000 inhabitants) 22,22 (2008) 
Deseased rate (per 1000 inhabitants) 6,4 (2008)
Income category Low income
Life expectancy male 66,87 years
Life expectancy female 71,9 years
Fertility rate total births per woman 2,76

Economic profile

GNI (Atlas method) US$ 1,069.4 billion (20057)
GNI per capita (Atlas method) US$ 950 (2007)
GDP US$ 1,171.0 billion (2007)
GDP Growth (annual %) 6.7% (2009 CIA World Fact Book)
GDP per capita 1016
GDP per inhabitant US$ 490
Rise of consumerprices 3,8% (2003/2004)
Exchange rate 1 Rupee = 0,0149824 Euro
Economic growth 5,3% (february 2009)
Inflation 7.8% (2008)
Employees per sector Agriculture 60%, Industry and Trade 17%, Services and Government 23%
Unemployment rate 6.8% (2008)
Export US$ 175.7 billion f.o.b (2008)
Most important products Machine components, textiles, jewelery and precious stones, software, petroleum products, chemicals, leather
Most important partners United States of America, China, United Arab Emirates
Currency Rupee (Rs)
Foreign debt US$ 125,5 billion (2005)
Debt-service ratio 9,2% (2005)

Geographical features

Total surface (sq. km) 3,3 million
Surface of Forest (sq. km) 677 thousand
Agricultural land (% of total surface) 60,6
Time difference compared to the Netherlands

+4.5 (wintertime)

+3.5 (summertime)

Market profile

Time required to start a business (days) 35
Market capitalization of listed companies (% of GDP) 68.6
Fixed line and mobile phone subscribers (per 1,000 people) 127.7
Internet users (per 1,000 people) 54.8

Population

Language Hindi, English
Religion Hindu (83%), Muslim (11%), Others (6%)
between 0 - 14 32.70%
between 15 - 64 62.30%
65 years and older 5.0%

Important cities

Mumbai (Bombay)
Kolkata (Calcutta)
New Delhi (Capital)
Chennai (Madras)
Bangalore
Hyderabad
Ahmedabad

Foreign Trade

Total import to India US$ 65,2 billion
Total export to India US$ 52,7 million
Export from the Netherlands to India € 1,58 billion
Import from the Netherlands to India € 1,79 billion
Prominent trading partners

Import from: USA, Belgium, UK, Japan, Germany, China

Export to: USA, UK, Germany, Japan, Belgium, China

Relations with the Netherlands

Ambassador in the Netherlands H.E. Ms. Bhaswati Mukherjee
Indian community in the Netherlands 14,682

Growth sectors

Expecting high export of services IT
Rapid growth of national consumption Automotive components
Growth of investments (national and international) Textiles
Growth sectors Pharmaceuticals, Health, Tea Industry, Agriculture, Energy, Petrochemical, Foodprocessing, Durable consumer goods, Electronics, IT

Source:

EVD http://www.evd.nl/ , CBS http://www.cbs.nl/ , Census India http://www.censusindia.net/ , World Bank http://go.worldbank.org/63DY8HX2R0/ , EIU http://www.eiu.com/

Interesting facts about India:

  • Tea industry in India generates income and livelihood for nearly 20 million people in the country
  • AT Kearney ranks India as the 6th most attractive investment destination
  • India has been ranked as the top destination for retailers in AT Kearney’s Global Retail Development Index (GRID)
  • Global Economic Survey ranks India as the sixth-fastest growing country in terms of Construction
  • India has the fifth largest Electricity generation capacity in the World
  • India has an extensive road network of 3.3 million km – the second largest in the World
  • Roads carry about 70% of the freight and 85% of the passenger traffic
  • India has 125 airports; of these 11 are designated international airports
  • In 2004-2005, Indian airports handled 60 million passengers and 1.3 million tonnes of cargo
  • India is one of the ten largest retail markets in the world
  • Travel and Tourism is a US$12 billion (by revenu) industry in India
  • 3.5 million international tourist arrivals in India in 2005
  • India is among the top 10 global suppliers of aluminium and steel in the world
  • About 35 million tonnes of steel is produced in India
  • India is also the largest producer of sponge iron in the world
  • India is amongst the largest producers of cotton
  • India is the largest consumer of gold jewellery in the world; accounts for about 20% of world consumption
  • India is the largest diamond cutting and polishing centre in the world
  • Healthcare delivery is one of the largest service-sector industries in India
  • The Indian Institues of Technology (IITs) have been ranked the third best technology universities in the world for 2005, according to the prestigious Times Higher Education Supplement (THES)

Climate & location
India is really a sub-continent having rammed into the belly of Asia forcing up the mighty Himalayas along its Land Borders and leaving a vast peninsula to the south.
China, Nepal and Bhutan are India's neighbours to the north and north-east with Pakistan and Afghanistan to the north-west. To the east of India lies Myanmar, while surrounded by India's eastern and north-eastern states is Bangladesh. India is the connection between the oriental influences of South East Asia and the mainly Muslim countries of Central Asia and the Middle East.
India is the 7th largest country by land area and is usually split, by geographical distinction, into 4 regions: the northern mountain region, the Indo-Gangetic Plain, the desert area and the southern peninsula. Whilst the southern peninsula covers the same region; in our regional summaries the others have been adjusted to match trading partners, economy and accessibility.

The climate of India is dominated by the Asiatic monsoon and has 4 seasons:

  • Winter (December to February ) - The winter months are pleasant throughout India with bright sunny days, except in the mountainous regions of the North where the temperature can fall steeply associated with heavy snowfalls.
  • Summer (March to June) – Dry and hot. Humidity varies by region. The main rivers of the gangetic plain maintain their flow most of the year as melt water from the Himalayas increase over the summer.
  • South West Monsoon (June to September) – The dominant season providing the majority of the rainfall.
  • Post Monsoon (October to November) – Drier winds from the North, more comfortable temperatures. Wedding season in many states.
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Overview

History India

History
India has a long and rich history. Between 3000 and 1700 B.C., the Harappa culture flourished in the Indus valley (the present Pakistan and North India). Around 1500 B.C., the Aryan tribes arrived from in north-west of India, having travelled from Central Asia. The relationship with other tribes created a system of castes, Sanskrit, the Vedic scriptures, and the religious philosophy that would finally result in Indian civilisation and the Hindu faith as we know them today. In the sixth century B.C. Buddhism and Jainism came into existence in India. India experienced peaks of dynastic power and flourished culturally during the Maurya empire (third century B.C.), the Gupta period (4th-5th century A.D.), the maritime Chola dynasty (9th to middle of the 13th century A.D.) and the reign of the Islam Mongol sultans (from 1526 until 1862).

Even in classical antiquity, maritime and caravan trade took place between India and Europe, travelling via the Middle East. After the establishment of the European trading companies (in the 16th century), the trade between India and Western Europe increased significantly. The first Europeans to set foot on the Indian coast were the Portuguese in 1498 (Vasco da Gama), followed by the Brits (East-India Company), the Dutch Verenigde Oost-Indische Compagnie (VOC), the French and the Danish. From 1602 until around 1750, the VOC was the main trader of Indian goods within Asia (cotton, silk, opium) and with Europe (cotton, silk, saltpetre and indigo). This position was then claimed by the Brits, who by 1850 ruled over most of India. The last Dutch settlements were handed over to Britain in 1824. In 1857 around 60% of the country was directly controlled by Britain, and the other 40% was controlled by maharajas and other native sovereigns who had to acknowledge Britain’s sovereignty. In the same year, the Indian regiments of the British colonial army revolted and were violently crushed during what is now known as the Sepoy mutiny. In 1858, as a response to the mutiny, the East India Company was dismantled and the reign of India was handed over to the British crown.

In about 1920, the native organisation the India National Congress became a nationalist mass movement for independence, which rose above religion, caste and ethnic origins. The movement was initially closely associated with, and finally led by Mahatma Gandhi. On 15th August 1947, India got its independence, and the last viceroy, Lord Mountbatten, handed the administration over to Prime Minister Jawaharlal Nehru. 
Pressure from the Jinnah-led Muslim league, which campaigned for a homeland for Muslims, meant the British decided to divide British India into secular India and Islam West and East Pakistan. This division was a black page in the history of the sub continent, which determines the relations between the countries to this very day. It resulted in mass migration, and about one million deaths as the result of ethnic and religious riots. On 3rd January 1948 Ghandhi – who had peacefully fought against the split – was shot and killed in Delhi by a Hindu fanatic.
After Gandhi’s death, Jawaharlal Nehru succeeded him and launched the industrialisation of India. He was later followed by his daughter, Indira Gandhi in 1966. The present ruling coalition in India is led by the Congress party. 

The four cornerstones of the Congress’s policies were democracy, secularism, socialism and non-alignment. In the early years after Independence. The policies with regard to the economy were strictly regulated, focused on the country itself and on remaining as self-sufficient as possible. After an electoral defeat in 1977, Indira Gandhi returned as prime minister in 1980. Her son Rajiv succeeded her in 1984, when she was murdered by her body guard (a Sikh extremist). Rajiv Gandhi’s policies concentrated on the gradual economic liberalisation of India. After Rajiv’s murder by Sri-Lankan Tamil extremists in 1991, the new Prime Minister Rao, with the help of the IMF, introduced drastic economic liberalisation measures. Despite this, the popularity of Congress diminished, and the party lost its dominant position. From 1996 the country has had several coalition governments.

Government
India has been a federal republic since the Constitution of India came into force in January 1950. India currently consists of 28 states in 7 union territories. After 1956, the states became increasingly organised according to linguistic criteria.
The head of state is the president, who is elected by parliament every five years. On 25th July 2002, dr. A.P.J. Abdul Kalam was elected as president. Kalam is a Muslim and the scientific brain behind India’s rocket programme. The governors of the states are appointed by the president.
India is a parliamentary democracy. Parliament, which is based on the British government structure, consists of the Council of States, which is elected by the state parliament, and the House of the People, with 545 members, 543 of whom are elected by constituencies and 2 of whom are appointed by the president. In the House of the People, 79 seats are reserved for representatives of the lowest castes/outcastes (“Scheduled Castes��?) and 40 for members of indigenous people (“Scheduled Tribes��?). The House of the People is elected directly every 5 years through a constituency voting system, based upon universal suffrage. The leader of the largest party becomes prime minister and selects his Cabinet. The state parliament elections do not run parallel to the federal parliament elections. Partly due to the deconstruction of the central planning system, a decentralisation process has been in progress since the end of the eighties, with as a result that the power of the states with regard to economic and social matters is slowly increasing. Currently the states are still mostly financially dependent on the centre.
The Constitution of India from 1950 established an independent justice system, based upon British common law. The judiciary also functions as arbiter in competence disputes between federal and state governments. Each state has its own courts of justice, and the High Court is in New Delhi.

Internal Policy
India has been independent for 56 years, with the Congress party ruling for 45 years. In the nineties, certain new, important trends emerged in Indian politics. The decades-long political supremacy of the Congress Party was replaced by the emergence of another player, the “Bharatiya Janata Party��? (Indian People’s Party, BJP). The Congress Party also remained, together with a number of smaller, regional and other parties. This is connected to the rise of weak and unstable multi-party coalitions and the growing influence of regional parties on the central decision-making process. 
In 1996 the Hindu-nationalist BJP, which had only taken a few years to grow into India’s largest party, took over the helm from the Congress Party, lead by prime-minister Atal Bihari Vajpayee. This government only lasted 13 days. The next BJP government lasted from March 1998 until April 1999. The elections of September/October 1999 were won by the National Democratic Alliance (NDA), a new bloc of fifteen regional, Hindu and secular parties, lead by the BJP.
Although the mandate of the National Democratic Alliance, lead by Prime Minister Vajpayee, only finished in October 2004, the prime minister called for early elections in April/May 2004, confident that he would be re-elected. These elections resulted in an unexpected win for the Congress party, lead by Sonia Gandhi. She nominated Dr. Manmohan Singh, one of the main architects of India’s liberalisation as the new Indian prime minister. Together with a group of 68 ministers, he leads a coalition government, the “United Progressive Alliance��? (UPA). The UPA government is a minority government, which is supported by a bloc of leftist parties. Governing with a large coalition consisting mainly of regional parties is a challenge. This has slowed down the e decision-making process. 

The Indian Prime Minister Manmohan Singh has set a number of medium-term priorities. These consist, first of all, of the further reform of the state system (less bureaucracy and less corruption). Secondly the economy will be liberalised further (privatisation, more foreign investments, more free market processes). Thirdly, there will be more of a focus on fighting poverty, especially in rural areas (unlocking rural areas, increasing agricultural output). And lastly, efforts will be made to recover lost ground with regard to modernisation, and the physical infrastructure (roads, ports, airports) will be improved and expanded.

Human Rights
In India, most of the democratic fundamental rights are secure. Legal certainty has been guaranteed by the constitution. Any violations of the basic rights recorded in the constitution can be taken directly to the Federal High Court and the state High Courts. In practice, legal proceedings can take a long time, and access to legal representation etc. can depends on one’s social position. India has a National Committee for Human Rights (and similar committees in a number of states) since 1993. It is one of the few countries in the region that have signed important international human rights treaties such as the International Covenant on Civil and Political Rights. In 1993, India ratified the UN Treaty on Women and the UN Convention on the Rights of the Child.

Despite the extensive constitutional/legal safeguards, violations of human rights are not unheard of. Although it is illegal, child labour does occur in India. A major problem, for instance, is the specific group of children who live in bondage as debt slaves. In addition, an increasing number of Nepalese girls are being sexually exploited in the large Indian cities.
Violence against women and communal and caste violence remain a worrying trend. However, in the last decades a lot of work has been done to combat these problems. A large number of governmental and non-governmental organisations have been set up to eradicate the results of these social ills. Due to the work of these organisations, the proliferation of media coverage and the increase in income, education and awareness, accountability has increased and the situation has improved.

India’s ancient caste system means part of the population is still excluded from wealth and decision-making. The caste system was officially abolished in the constitution, and many measures have been brought in to uplift traditionally disadvantaged people. In practice the rules and limitations of the caste systems are sometimes still adhered to, especially in rural areas in the lesser developed parts of India.

Social Situation
Throughout the years, ever since India’s independence, human development and the struggle against poverty have been at the top of the Indian government’s agenda. Government programs have mainly focused on increasing employment and food subsidies. Although India has managed to eliminate structural famine, slow down the population growth, gradually improve the social indicators, and marginally reduce the way a person’s caste influences his/her economic chances, poverty and inequality of income are still a major issue. At present mainly the upcoming (urban) middle classes are profiting from the current economic developments.

Economic State of Affairs
India was typified as a sleeping giant for years. After its independence in 1947, India adopted a socialist system, relying on its own knowledge, power and insights. Principles were import substitution, non-alignment, and a certain level of autarky. This economic strategy led to a financial crisis at the beginning of the nineties. The loss of the Soviet Union as India’s traditional ally, the emergence of China and increasing globalisation meant that the policymakers in New Delhi finally realised that things had to change radically. Reforms, liberalisation and a better integration into the world economy were key. Predictions are that the Indian economy will overtake Germany in 2023 and Japan in 2032, by which time India will be the largest economy in the world after China and the US. Currently the growth rate of the Indian economy is 8% - 9% a year.

The Indian economy is marked by its diversity. On the one side, it is one of the most industrialised countries in the world, but on the other hand is it one of the poorest countries in Asia. There are also significant differences in wealth and development between, and even within, the individual states.

The Indian government is taking steps to integrate India further into the international economic structure. The current government is trying to modernise the current economy through reforms, including fiscal reforms (inc. the introduction of VAT), the creation of special economic zones, the partial breakdown of tariff walls, the adjustment of patent regulations to Trade Related Aspects of Intellectual Property Rights (TRIPS) standards, and a commitment to the reduction of bureaucracy and corruption and the development of the country’s inadequate physical infrastructure. Another important development in the economic reforms of the last few years has been the continuing decentralisation, with power shifting from the federal government to the states, enabling them to increasingly determine the speed of economic and social reforms themselves. There is also a lot of international attention for India as an important upcoming economy. The continuous high economic growth rate (2004: 7.5%, 2005: 8.1 %, prognosis 2006: 7.6%) and the government’s reform strategy, in as far as it is put into practice, provide Dutch businesses with a lot of opportunities.

Environmental Policies
The growth rate of the economy and the population has lead to the over-exploitation of natural resources such as water, soil, biodiversity and energy, increasing pollution and causing climate change. The World Bank estimates that the costs of environmental degradation in India are around 4.5 to 8% of the BNP. In the seventies, the Indian government started drawing up regulations to prevent domestic and industrial pollution. “Pollution Control Boards��? were set up, at national and at state level, which are meant to ensure that emissions into the surface water and the air do not exceed the set limits. The Environmental Protection Act enables the government to close down factories and cut off the electricity and/or water supply if environmental rules are violated, and to limit the location of industrial sites or to introduce special regulations for such sites. Civilians can also start proceedings against polluting activities based upon this law. Certain categories of industries require an environmental effect report. The implementation of all this, however, leaves much to be desired and especially the large cities have to deal with extreme air pollution.

Foreign Policy and Security Policy
After its independence, India appointed itself as leader of the Non-Aligned Movement, which consisted of states that considered themselves not formally aligned to any country or power bloc. As a response to the chilly relation with China in the sixties (bilateral border dispute and first Chinese nuclear tests), and the creation of an American-Pakistani “alliance��?, India approached the USSR. The USSR became India’s most important partner in trade, and supplied more than 80% of India’s arms. When the USSR was dissolved, the traditional cornerstones of the foreign policy (“non-alignment��? and the relation with the USSR) disappeared.

India has been trying to obtain a more prominent role on the world stage for quite some time. This is shown, for instance, by their lobbying for a permanent seat in the UN Security Council. Nuclear arms and improvement of rocket technology are also part of this strategy. India openly became a nuclear power in 1998. India considers the Nuclear Non-Proliferation Treaty (NPT), according to which only five countries are recognised as nuclear weapon states (including neighbouring China), to be discriminating (only countries who held nuclear tests before 1964 are able to join: China joined in 1962, India tested a “peaceful nuclear explosive device��? in 1974).
In the past few years, bilateral contacts have intensified with the US, Russia, Japan, Australia, Iran, Burma/Myanmar, and countries within the EU, including the Netherlands. The relations with China are also improving steadily. Both countries still have a number of unsettled border disputes, but it looks as if they do not want to stop these from developing relations in other areas. The trade between the countries has increased significantly since the nineties.

India’s dominance over the sub continent is the most important factor with regard to the mutual relations within the region. India is a supporter of regional integration within the framework of the South Asian Association for Regional Cooperation (SAARC), but is initially only forming bilateral relations with its neighbouring countries. In addition, India is trying to strengthen the relation with (regional) trade blocs such as ASEAN, ASEM and APEC.

Since 1947 (the partition of British India), the relations between India and Pakistan have been mainly determined by the Kashmir conflict. In 1999 the relations between the two countries worsened and threatened to lead to a large-scale military conflict. In 2002, after a terrorist attack on the Indian parliament on the 13th of December and a number of terrorist attacks in Kashmir in May, both countries ended up facing each other with a large number of troops once more. In November 2003, the two countries entered into a cease-fire, and they are now making progress, improving their relationship based upon measures aimed at increasing trust between the countries. Traffic links and diplomatic relations have been restored, and a cease-fire along the Line of Control, the line that divides Kashmir, has been held since 26th November 2003. 

Relations with the EU
For quite some time, India was only interested in the EU as a trading partner. The EU member states jointly are India’s largest trading partner, worth 22.5% of the total Indian import and 23.6% of the total Indian export. For the EU, where imports are concerned, India takes 16th place (just 1.5% of the EU’s total import comes from India) and where exports are concerned it takes 14th place (just 1.7% of the EU’s total export goes to India). Most of India’s imports come from the UK, Belgium, Germany, France and the Netherlands. The most important imports from the EU are engines, gemstones and jewellery, and chemical products. The most important Indian export products to the EU are textiles and clothing, machinery, agricultural products, gemstones and jewellery.

Since India is increasingly profiling itself as a regional super power and is looking to join with other large entities such as the EU and the US, the other aspects of the relation have now become more interesting.

The framework for the relation between the EU and India is the Cooperation Agreement on Partnership and Development, signed in 1994. This includes the EC-India Joint Commission, which meets roughly every 18 months. The Joint Commission includes three subcommittees for trade, development aid, and economic cooperation. In 1994 a Joint Political Statement was signed, which forms the basis of the political dialogue between the EU and India.

There is an annual India-EU summit, which was started in June 2000, the location of which alternates between New Delhi and the capital of the current President of the European Council. The summit in November 2004, chaired by the Netherlands, resulted in a Strategic Partnership with India. The EU has a partnership with five other countries: Canada, China, Japan, Russia and the US. The partnership will be dealt with in more detail in a so-called Joint Action Plan, which has already resulted in a large number of workgroups and initiatives. In addition to a more intensive relation with the EU, India is also strongly values the bilateral relations with the member countries.

For more information about the resolution of the European Parliament (EP) with regard to India, please contact the EP information desk in The Hague (+31 (0)70 3624941) or visit the EP website (View the website).

Relations with the Netherlands
The Netherlands and India entered into diplomatic relations immediately after India’s independence.

When one looks at the export and import volume, the Netherlands and India are not significant trading partners. Dutch exports to India may have increased by 42% in 2004, but in spite of this, the Dutch share in Indian imports is getting smaller. The total Dutch export to India is only 0.2 percent of all Dutch export. The Netherlands is an important investor in India, however. In view of the tremendous trading and investment potential of the Indian market, there seems to be room for improvement for the Dutch export of goods to and the Dutch investments in India. Therefore, the Dutch Trade Board (DTB) has set up a public-private workgroup and has drawn up an action plan to promote the economic relations with India. India has a large range of tools at its disposal. The Netherlands has an expansive trading network in India, consisting of the embassy in New Delhi, the consulate general in Mumbai, and two Netherlands Business Support Offices in Chennai and Ahmedabad. A council for Agriculture, Nature and Food Quality is situated at the embassy with a view to the Dutch interests in the agricultural sector. There is also a bilateral workgroup in India which aims to remove the barriers with regard to plant health between India and the Netherlands. The Ministry of Economic Affairs is currently making preparations for the assignment of a scientific and technical attaché (STA) and is also preparing to open an office for the Netherlands Foreign Investment Agency (NFIA).

There is bilateral cultural and educational collaboration between various field organisations (universities, theatres, museums) in the Netherlands and India. The cooperation between Indian and Dutch scientists is furthered through joint multi-disciplinary (mainly socio-economic) research (e.g. through the “Indo-Dutch Programme on Alternatives in Development��? (IDPAD) and the “Kerala Research Programme on Local level Development��?), exchange-programmes and seminars. The Dutch government provides grants to Indian students within the framework of the Huygens programme (OC&W) and the “Netherlands Fellowship Programme��? (OS).

In view of the rich heritage from the period during which the VOC had trading posts in India, the Netherlands sees the mutual cultural legacy from the 17th and 18th centuries as an important basis for cultural cooperation, and supports various related activities. The Netherlands is aiming to broaden the cultural cooperation, with an emphasis on the maintenance of the mutual cultural heritage. The Netherlands will enter into an MoU with India, on the basis of the existing cultural agreement. In addition to the mutual cultural heritage, the MoU will focus on visual arts, film, new media, music, design, and contacts with the Hindu community in the Netherlands (more than 130,000 people with a Suriname-Indian background and around 20,000 Indians). An MoU between the Netherlands and India will also be drawn up for the restoration of the VOC archives.
In June 2006, the cabinet approved an inter-ministerial policy document that will form the framework for the relations with India during the coming years. Considering the Indian context, the expected developments and the Indian priorities, the Netherlands will mainly use its bilateral relations with India for economic, scientific and technical, and cultural collaboration. The increase in intensity of these relations requires the further adjustment of the Dutch immigration policy, which has therefore been given priority. To promote international security and regional stability, the Netherlands will collaborate with India and its neighbours on counter-terrorism, water management, environmental management, development cooperation and sustainable energy. Finally, the Netherlands will work with India on international legal order and human rights, both through its bilateral relations and through multilateral channels.
Visits
Starting in the eighties, the bilateral relation with India has been intensified through visits from, amongst others, Queen Beatrix (1986), Prince Claus (1981, 1988 and 1991) and Prime Minister Lubbers (1987, 1993) to India, and visits from Prime Minister Premier Rajiv Gandhi (1985) and president Venkataraman (1988) to the Netherlands. The visits emphasised the increased Dutch interest in India.
In the nineties a number of exchanges at ministerial level took place. In May 1995, Minister Jorritsma visited with a large delegation of companies, and the (then) Indian minister of Trade Chidambaram visited the Netherlands in the same year. In 1996 secretary of state of Economic Affairs Van Dok travelled to India. In September 1997 minister Venkataraman of Surface Transport visited the Netherlands, followed by minister of Trade Hegde in 1998. Minister Pronk visited India several times, e.g. in 1995 and 1996. In November 1999, Prime Minister Kok and minister Herfkens visited India, followed by state secretary Ybema in 2000, who also took 50 companies and organisations with him. Minister van Aartsen made a brief visit in 2001. Minister Herfkens visited at the end of 2002. In November 2002, state secretary Van Ardenne-Van der Hoeven and state secretary Wijn visited India together, accompanied by a delegation of representatives from 25 businesses and (educational) facilities.

At the beginning of February 2004, the state secretary for Housing, Regional Development and the Environment Van Geel visited India to take part in the “Delhi Sustainable Development Summit��?, organised by the renowned “The Energy and Resource Institute’ (TERI)��?, for the second time. In the middle of February 2004 minister of Foreign Affairs Bot visited as member of the annual Ministerial EU-Troika India. Minister of Economic Affairs Brinkhorst visited New Delhi at the end of February 2004. The main purpose iof this visit was a discussion of the state of affairs with regard to the WTO negotiations and India’s position regarding this.
Prime Minister Manmohan Singh and Minister of Trade and Industry Kamal Nath visited the Netherlands within the framework of the EU-India summit, chaired by the Netherlands in November 2004. In June 2005, four Indian ministers (Trade & Industry, Tourism, Civilian Aviation, Information & Broadcasting) visited the Netherlands. In October 2005, Minister Brinkhorst of Economic Affairs visited India. Defence Secretary van der Knaap visited India at the beginning of December 2005. In January 2006, Prime Minister Balkenende visited India, followed in April by a visit by the chairpersons of various parliamentary parties.

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Aangestoken door het Indiase ondernemervirus

Hij was journalist, zij werkte als projectmanager voor het Rode Kruis. Maar sinds Jack Leenaars en Noreen van Holstein in India wonen, ontpopten zij zich als ondernemers die overal kansen zien. "Dit land werkt aanstekelijk."

Niet makkelijk
Jack Leenaars werd aangestoken door het Indiase ondernemervirus. Na vijf jaar stopte hij als correspondent en richtte DelhiByCycle op, dat fietstours organiseert voor toeristen door Delhi’s oude stad. “Als journalist fietste ik al veel door de oude stad. Het is prachtig om die ervaring met anderen te delen,” vertelt hij. Makkelijk is het natuurlijk niet, ondernemen in India. Leenaars: “De bureaucratie kan heel frustrerend zijn.” Van Holstein: “En het is verrekte lastig om constante kwaliteit te leveren. Daar moet je strak op blijven letten.”

Elke dag een nieuw idee
Het tweetal heeft nog veel meer ondernemersplannen. Van Holstein: “Als je je oren en ogen openhoudt, krijg je hier elke dag een nieuw idee. Alles is anders dan in Nederland. Een autorit van Breda naar Amsterdam is dodelijk saai, hier is alles een chaos. Er is zoveel bedrijvigheid. Dat werkt inspirerend.” Naast Gotcha! Impact Media werkt Van Holstein aan het uitrollen van een servieslijn voor zowel de Indiase markt als de Europese markt. “Dat is nu het meest concrete idee.”

 

 

 

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Azië is hot

India is dé opkomende markt die de laatste jaren in het Westen de meeste bedrijfsovernames deed, zo blijkt uit een KPMG-rapport. De accountantsorganisatie telde 410 Indiase ‘transacties’ sinds 2003, waarbij het gaat om minstens 10 procent Indiaas bedrijfsbelang. Daar zitten hele spectaculaire overnames bij. Neem ‘s werelds grootste staalfabrikant Arcelor, een Spaans/Frans/Luxemburgs conglomeraat. Die fuseerde in 2006 met het Indiase Mittal Steel. Of Tata Steel, een tak van de Indiase Tata Group. De onderneming verwierf in 2007 voor 8,7 miljard euro het Nederlands-Britse staalbedrijf Corus. En dan was er dit jaar de overname van Vredestein Banden door Apollo Tyres, India’s grootste bandenfabrikant. Naar verluidt telden de Indiërs 300 miljoen euro neer voor het bedrijf. Big, bigger… Hoe zijn al deze Indiase overnames te verklaren? Allereerst is er India’s uitdijende economie, die in het wereldwijde crisisjaar 2008 nog altijd met 7,4 procent groeide. Maar goed, China kent nóg indrukwekkender groeicijfers. Er is dus meer aan de hand. Rutger de Bruijn, één van de oprichters van NexusNovus, een adviesbureau voor bedrijven die de Indiase markt op willen, verklaart de trek naar het Westen onder meer uit de enorme grootte van Indiase bedrijven. Grootte heeft ruimte nodig. Grootte stelt bedrijven in staat omvangrijke overnames te doen. De Tata Group bijvoorbeeld telt 360.000 werknemers wereldwijd en kent een jaaromzet van 47 miljard euro. “India heeft dergelijke megaondernemingen omdat de overheid zo waanzinnig inefficiënt is”, aldus De Bruijn. “Daardoor loont het voor bedrijven om zoveel mogelijk activiteiten binnenshuis te houden. Uitbesteden verzandt immers onherroepelijk in bureaucratie.” Beledigend De ondernemer wijst er verder op dat India in een hoog tempo een van ‘s werelds grootste consumentenmarkten wordt. Gopal Ramanathan, zelf geboren in India, beaamt dat. Hij is directeur van KPMG’s High Growth Markets Practice. “Vooral voor die interne markt zijn Indiase bedrijven hard op zoek naar kennis. Die verwerven ze door in het buitenland bedrijven op te kopen.” Kennis is voor India onmisbaar. De Bruijn: “China staat voor goedkope producten. India’s sterkste troef is zijn gigantische talent pool. Alleen al in de Indiase IT-sector studeren jaarlijks 200.000 mensen af.” Een andere verklaring voor India’s overnamedrift is dat het land zich, veel meer dan bijvoorbeeld China, richt op het Westen. Ramanathan: “De Britse kolonisatie speelde hierin een doorslaggevende rol. Indiërs spreken daardoor veel beter Engels dan Chinezen.” De Bruijn: “Indiërs hebben zelfs een lichte hekel aan alles wat Oosters is. Hen ‘Aziaten’ noemen, vinden ze ronduit beledigend.” Tijdbom Maar niet alles is hosanna in superIndia. Zo is de ongebreideld groeiende bevolking (ruim 1,1 miljard inwoners) een probleem. Want hoe voed je die? Ramanathan: “India kent met een gemiddelde leeftijd van 25 jaar de jongste bevolking ter wereld. Familieplanning ligt politiek zeer gevoelig omdat kinderen nog steeds worden gezien als oudedagsvoorziening. Een tikkende tijdbom.” Verder blijft de inkomensongelijkheid schrijnend. Meer dan een kwart van de Indiase bevolking leeft onder de armoedegrens. De Bruijn: “In essentie is India een middeleeuwse maatschappij met een Westers georienteerde toplaag. Het land kent ook nog 24 hoofdtalen, zes grote religies en een kastensysteem. India draait op veel verschillende snelheden. Dat gaat een keer problemen opleveren.” Omarm Niettemin is het Indiase zelfvertrouwen in no time enorm gegroeid. De Bruijn: “Acht jaar geleden reisde ik door India. Veel chaos, armoede en ellende. In 2006 keerde ik terug. It changed overnight. Er heerste zoveel ruwe energie dat ik er helemaal door aangestoken raakte.” De Bruijn, die zelf sinds drie jaar woont in Bangalore, het Indiase Silicon Valley, ziet in de Indiase overnamewoede geen bedreiging – eerder grote kansen. “Hoe meer ervaring Nederlandse ondernemers opdoen met Indiase bedrijven in het Westen, hoe sneller ze zelf de stap zetten naar de Indiase markt.” Ramanathan: “Indiase bedrijven hebben een enorme behoefte om te leren en om samen te werken. Waarom zouden we dat in Nederland niet toejuichen? India en het Westen kunnen op die manier samen bloeien.”  back to top.

LETTER OF INTENT MEMORANDUM OF UNDERSTANDING FOR STRENGTHENING THE COOPERATION BETWEEN THE MINISTRY OF CORPORATE AFFAIRS OF INDIA AND THE MINISTRY OF ECONOMIC AFFAIRS, AGRICULTURE AND INNOVATION OF THE NETHERLANDS IN THE AREA OF CORPORATE GOVERNANCE AND

The representatives of the Ministry for Corporate Affairs of the Republic of India and the Ministry of Economic Affairs, Agriculture and Innovation of the Kingdom of the Netherlands (hereinafter referred to as the ‘Signatories’); Noting with great satisfaction that bilateral trade and investment between India and the Netherlands increased substantially in the last decade; Considering that in a globalized economy sustainability is a prerequisite for longterm economic growth and that responsible business practices are vitally important elements of trade and investment; Considering that both governments support cooperation between knowledge institutes, small and large companies and consumers; Being convinced that extended and deepened bilateral economic partnership between India and the Netherlands is of mutual benefit for the development and well-being of the people of both countries and will further promote the friendly relations between the two countries; Noting the importance of mutual cooperation for exchange of knowledge and information in the areas of corporate governance and corporate social responsibility, including corporate regulation, professions of accountancy and company secretaryship, responsible business practices, corporate disclosures and reporting, etc., is of relevance to many stakeholders including governments,consumers, business partners, shareholder, investors, employees, and societal actors. Have decided as follows: SECTION 1 The signatories will strengthen and intensify the bilateral cooperation by establishing a bilateral Working Group on corporate governance and corporate social responsibility. The Working Group is aimed at assisting stakeholders from both countries in learning from the experiences of each other in the areas of corporate governance and corporate social responsibility, including corporate regulation, professions of accountancy and company secretaryship, responsible business practices, corporate disclosures and reporting, etc. SECTION 2 The signatories can define, by mutual consent, various areas of cooperation, on the basis of suggestions of the stakeholders in both countries. SECTION 3 The working group will meet at mutually decided regular intervals and at least twice in a year. The meetings of the Working Group will include the following: • Monitor the process of implementation of the cooperation; • Discuss specific activities and measures to enhance the range and quality of cooperation under this Letter of Intent; • Propose areas of cooperation. The Working Group will be co-chaired by the Secretary, Ministry of Corporate Affairs of the Republic of India, and the Secretary-General Ministry of Economic Affairs, Agriculture and Innovation of the Netherlands. An official from each side will be designated as single point of contact. Members of the Working Group may include the representatives from the Government, Regulatory Authorities, Trade and Industry Chambers, Institutions and other stakeholder groups. The Working Group may also set up sub-groups on various subject areas on mutually decided principles. SECTION 4 The activities of the Working Group will be determined by both signatories upon mutual arrangement. Depending on the arrangements reached, the activities will be undertaken through further dialogue and contacts at Government, Institutional and business level. The activities may, inter alia, include the following: a. organizing bilateral consultations and expert talks, b. mutual information and invitation to meetings and conferences dealing with the issues covering this Letter of Intent,c. organizing events, workshops etc in the framework of cooperation on relevant issues, d. strengthening and deepening the dialogue with and between the stakeholders in the respective countries. Any communications to the press or media regarding the activities of the Working Group shall only be as mutually agreed by both signatories. SECTION 5 Any project or activity in cooperation between the Signatories will be subject to its own financial resources and mutually decided conditions. The costs of exchange visits under the approved activities under this Letter of Intent will be shared on mutually decided terms. SECTION 6 Any differences relating to the interpretation or implementation of this Letter of Intent will be settled amicably between the Signatories through diplomatic channels. SECTION 7 With respect to the cooperation activities established under this Letter of Intent, each Signatory will provide, in accordance with its laws and regulations, the best possible conditions for implementation. SECTION 8 This Letter of Intent does not create any rights or obligations under international law. This Letter of Intent may be terminated by either signatory at any time. Signed in duplicate on the 7th of June 2011, in the English language. D. K. Mittal Bob Hiensch Secretary, Ministry for Corporate Affairs Netherlands Ambassador to India Government of India Government of Netherlands back to top.