MOU SIGNED BETWEEN INDIA AND NETHERLANDS FOR PROMOTION OF INVESTMENT
NETHERLANDS ECONOMIC AFFAIRS MINISTER MEETS JAITLEY
Date : 27 Feb 2004
Location : New Delhi
India and Netherlands have signed a Memorandum of Understanding (MOU) for promotion of investment between the two countries. Shri Arun Jaitley, Union Minister of Commerce & Industry, signed the MOU, here today evening, on behalf of Government of India whereas Mr. Laurens-Jan-Bringkhorst, Minister of Economic Affairs, for the Government of Netherlands. A Joint Investment Promotion Committee has been set up to promote investment cooperation, identify promising sectors and assist the private sector. Under the MOU, a ‘Programme for Cooperation with Emerging Markets’ would also be introduced in India, which would support setting up joint innovative pilot projects to generate substantial local employment, transferring knowledge, making extensive use of local SMEs in the supply chain and contribute to poverty alleviation.
During the meeting, both the Ministers discussed matters of negotiations in the WTO and emphasised the need to take forward the negotiations. Shri Jaitley told the Netherlands Minister that Indian economy had changed substantially during last few years and said that India would like to move forward in the various areas of WTO negotiations like services and manufacturing. "We don’t want to see the year 2004 gone as non-year in WTO negotiations", Shri Jaitley said. The economically developed nations have to take initiative in this regard, he added. Both the Ministers stressed the fact that there seem to be far greater understanding between India and the EU.
The two Ministers acknowledged that the signing of MOU would provide fillip to the investment in both the countries. About 4 pilot projects with an average project size of Euro 1 million per investment, contributing 50% of the project cost would be taken up. Netherlands is an important trading partner of India in the EU. During the first seven months 2003-04, the bilateral trade has shown a significant growth of about 26%. The Netherlands is ranked 7th in the list of countries from which FDI has been approved in India. Total FDI approved from Netherlands during 1991-2003 is US $ 2.43 billion, out of which the inflow is US $ 1.37 billion.