NETHERLANDS Trends and Developments Contributed by: Edith Nordmann and Thomas Klaarenbeek, ACG International
How Indian Companies Can Structure Their European Expansion Through the Netherlands India and the Netherlands have entered a new phase in their bilateral relationship. With the elevation of their relationship to a Strategic Partnership for 2026–2030 and the conclusion of negotiations on the India–EU Free Trade Agreement, the commercial case for Indi - an companies expanding into Europe has become stronger than ever. In that context, the Netherlands is increasingly becoming India’s gateway to Europe. Its position is not based on geography alone: the Netherlands com - bines world-class logistics, a highly international busi - ness environment, legal certainty, English-language dispute resolution and direct access to the European internal market. For Indian companies, this makes the Netherlands a practical platform from which to structure, manage and grow their European operations. For businesses, however, market access is only one part of the equation. Successful expansion into Europe requires a sound legal structure, clear contracts, reli - able dispute resolution, compliance with EU regula - tions and a realistic understanding of employment, tax, customs and governance requirements. The key question is therefore not only whether the Netherlands can serve as a gateway to Europe, but how that gateway should be structured. Incorporation alone is not enough. Companies should determine at an early stage which entity will enter into contracts with European customers, who will bear liability, which law will apply, how disputes will be resolved and how EU regulatory obligations will be managed within the wider group. This article discusses why the Netherlands is increas - ingly used as a European hub for Indian businesses and highlights the main legal, economical and practi - cal considerations for companies seeking to use the Netherlands as their entry point into Europe. A new phase in India–Netherlands relations The relationship between India and the Netherlands has developed into a modern economic partnership
built on trade, investment, innovation and institutional co-operation. The commercial relationship is already substantial. In the financial year 2023–2024, the Netherlands was India’s 11th-largest merchandise trading part - ner worldwide and its largest merchandise trading partner in the European Union. Total merchandise trade between India and the Netherlands stood at USD27.341 billion, accounting for 2.46% of India’s total merchandise trade. The Netherlands was also India’s largest merchan - dise export destination in Europe and its third-largest worldwide, after the United States and the United Arab Emirates. In the same financial year, India exported goods worth USD22.367 billion to the Netherlands, representing 5.12% of India’s total merchandise exports. The Netherlands is also a major investment partner, ranking as the fourth-largest source of cumu - lative foreign direct investment into India. The relationship is reflected not only in trade and investment figures, but also in corporate presence: more than 300 Dutch companies are active in India, while more than 300 Indian companies have estab - lished a presence in the Netherlands. These include major Indian IT, pharmaceutical, manufacturing and food businesses, as well as several significant Indian acquisitions of Dutch companies in sectors such as steel, mobility, software, life sciences and hospitality. In recent years, however, the relationship has become broader and more strategic. It now covers not only trade in goods, but also technology, innovation, sus - tainability, water management, agriculture, semicon - ductors, pharmaceuticals, maritime co-operation, cyber security and the energy transition. The Strategic Partnership Roadmap for 2026–2030 reflects this broader development. It identifies areas of co-operation with direct relevance for businesses, including renewable energy, telecommunications, maritime, infrastructure, urban development, electron - ics, semiconductors, agriculture, pharmaceuticals, medical technology, textiles, metals and innovation.
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