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					                                  Embassy of India
                                    The Hague

No. HAG/COM/201/2/2007                                       March 16, 2010


       Economic and Commercial Report for the month of February 2010


1.     GDP

       GDP of the Netherlands was US $ 789.7 billion in 2009 as reported by Word
Fact Book.

        The Dutch economy grew by 0.3 percent in the fourth quarter compared to the
third quarters. This was lower than the 0.5 percent improvement in the third quarter,
although for the second consecutive quarter, quarter-on-quarter growth was positive
after four quarters of negative growth.

        According to the first provisional estimates conducted by the Central Bureau
for Statistics (CBS), the Dutch economy shrank by 2.2 percent in the fourth quarter of
2009 relative to the same quarter in 2008. For the full 2009 year, an unprecedented
negative growth by 4.0 percent was recorded. This is the biggest contraction in one
year that CBS has ever measured. The previous record dates from 1931 when the
economy shrank by 3.6 percent. The largest decline after the Second World War was
by 1.2 percent in 1982.
(Source : CBS)

2.     Inflation

     The Dutch inflation rate in January was 0.8 percent, 0.3 percentage point lower
than in December. Inflation fell for the first time in five months. The decrease in
January was mainly due to the six-monthly adjustment of energy rates in that month.
Electricity became 5.0 percent cheaper compared to December. And although gas
became 1.0 percent more expensive, it was still 21 percent cheaper than in January
2009.

    Energy prices were down by over 17 percent on January 2009. The energy rates
depend indirectly on the oil prices and are adjusted twice a year in the Netherlands.
This is why the changes in oil prices influence the inflation rate after some delay.

    Food prices in January were down by 2.0 percent on the same year-earlier month.
In December this was 1.1 percent.

     Dutch inflation in January according to the European harmonised method (HICP)
was 0.4 percent. According to the Eurostat estimate, the inflation rate in the euro area
for January was 1.0 percent.
 (Source : CBS)
                                            2




3.    Total Dutch trade during period January - December 2009 compared with
same period in the previous year and balance of trade during the previous year:

Total Trade      Total Trade      Rate    of Total             Total          Balance of
during period    during period    growth     imports           exports        Trade
ending           ending           compared during 2009         during 2009    during 2009
December         December         to   same
2008             2009             period in
                                  2008

(bln Euro)       (bln Euro)                   (bln Euro)       (bln Euro)     (bln Euro)
706. 401         585.453          -17.12%     275.876          309.576        33.699
(Provisional figures - Source : Central Bureau for Statistics, Netherlands)


4. Total trade in Euro and its growth to 10 major countries during the period
January-December 2009:

                                                               (All figures in bln Euros)
Country                Dutch imports Dutch exports               Total trade
Germany                       54.411           74.591                            129.003
Belgium                       27.384           34.190                             61.574
UK                            16.807           26.156                             42.963
France                        13.688           27.597                             41.285
USA                           23.453           14.042                             37.496
China                         21.913            4.609                             26.522
Italy                           6.448          16.057                             22.505
Spain                           4.739          10.619                             15.359
Russia                          9.728           4.478                             14.206
Norway                          6.883           3.226                             10.109
(Provisional figures - Source : Central Bureau for Statistics, Netherlands)
                                                        3


                 Total Dutch Trade with 10 major countries during January to December
                                                  2009

     140

     120

     100
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     80
                                                                                                   Series2
     60
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     40

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5.            Total trade in Euro and its growth with India by top 10 commodities:

Total trade with India (Provisional figures):

Period                  Total      Imports Total Exports Total trade
                        from India          to India           mln Euro
                        mln Euro            mln Euro
December 2009                        230.9            146.2                                     377.1
 Total (Jan-Dec 09)                   2393             1693                                      4087
(Provisional figures - Source: Central Bureau for Statistics, Netherlands)

Trade figures of top 10 commodities :


              Imports from India during January-December 2009:


S.No.                      SITC                   Commodity                           Imports
                                                                                      ‘000 Euros
1                          33                     Petroleum products, related                      747309
                                                  materials
2                          84                     Articles of apparel and                          294106
                                                  clothing.
3                          78                     Road vehicles, incl. air-                        171323
                                                  cushion veh.
4.                         05                     Vegetables and fruit                             104982
5                          89                     Miscellaneous      manufact.                      94114
                                                  art., n.e.s.
6                          51                     Organic Chemical Products                         72639
7                          65                     Textile yarn, fabrics, made-                      70498
                                                  up art.
8                          77                     Electric machinery, n.e.s.                        69014
9                          75                     Office Machines                                   57023
                                           4


10                85                 Footwear                                           50893
(Provisional figures - Source : Central Bureau for Statistics, Netherlands)

                                                                    Petroleum products, related
              Imports from India of 10 major commodities during
                                                                    materials
                          January to December 2009
                                                                    Articles of apparel and clothing.

                                                                    Road vehicles, incl. air-cushion veh.

                                                                    Vegetables and fruit

                                                                    Miscellaneous manufact. art., n.e.s.

                                                                    Organic Chemical Products

                                                                    Textile yarn, fabrics, made-up art.

                                                                    Electric machinery, n.e.s.

                                                                    Office Machines

                                                                    Footwear




     Exports to India from the Netherlands during the period January-
December 2009:

                  SITC         Commodity                                Exports
S.No.                                                                   ‘000 Euros
1                 76            Telecommunications                              196836
2                 28            Metalliferous ores and metal scrap              188773
3                 51            Organic chemicals                               157874
4                 74            General industrial machinery                     96950
5                 72            Machinery spec. for particular indus             93847
6                 89            Miscellaneous manufact. art., n.e.s              78258
7                 57            Plastics in primary forms                        75477
8                 59            Chemical materials and products                  74605
                                n.e.s
9                 54            Medicinal      and    pharmaceutical             69489
                                products
10                33            Petroleum       products,       related          67864
                                materials
(Provisional figures - Source : Central Bureau for Statistics, Netherlands)
                                           5


                                                               Telecommunications
            Exports to India of 10 major items during
                  January to December 2009
                                                               Metalliferous ores and metal scrap

                                                               Organic chemicals

                                                               General industrial machinery

                                                               Machinery spec. for particular indus

                                                               Miscellaneous manufact. art., n.e.s

                                                               Plastics in primary forms

                                                               Chemical materials and products
                                                               n.e.s
                                                               Medicinal and pharmaceutical
                                                               products
                                                               Petroleum products, related
                                                               materials




6.     Total Dutch trade in Euro and its growth in trade in services (of five
       major categories)

Category               Total Trade in Total Trade in Rate of Growth
                       3rd quarter of 2009 3rd quarter of 2008
                       Million Euro        Million Euro            %
1. Other                     12579                13445        (-) 6.44
Commercial Services
2. Transportation              7757                     9535                       (-) 18.65
Services
3. Royalty and                 6871                     5681                         20.95
License Services
4. Travel Services             7824                     7783                          0.53
5. Computer and                1804                     1861                       (-) 3.06
Information Services


(Source : Statline CBS) Provisional figures)

7.     Major investments within and outside the country :

       The Netherlands ranks 5th in the list of countries in terms of cumulative FDI
inflows into India during the period April, 2000, to November 2009 with inflows
amounting to US $ 4.282 Bln 4.15 % of total inflows).

       The sectors attracting investments from the Netherlands have been: Computer
software & hardware; Services sector, financial and non-financial; Chemicals, other
than fertilizers; Housing & real estate; cement and gypsum products;
Telecommunications and Food Processing Industry. The technical collaborations from
the Netherlands have mainly been in the Hotel & Tourism Sector; Electrical
                                           6


Equipment (including computer software & electronics), Chemicals (other than
fertilizer), Industrial Machinery & Fuels (power & oil refinery).


        A large number of Dutch majors - Philips, Royal Dutch/Shell, Unilever, the
big three of Dutch banking - ABN AMRO, ING, and Rabobank - KLM, Akzo Nobel,
IHC Holland, SHV, Stork, DHV and others have a major presence in India in
important sectors of the economy and have been steadily planning additional
investments to expand their operations. At present there are about 115 Dutch
companies that have a presence in India.

8.     India’s investment interests :

       The Netherlands is also gradually becoming an attractive destination for
investments from India and figures amongst the top destinations. As per the Reserve
Bank of India, the Government of India cleared proposals worth about € 2.38 bln
($ 3.5 bln)(r.o.e. 1€ = $ 1.47) for investments by Indian organizations in the
Netherlands during the financial year 2008-09 (April-March).


        Some of the big corporate houses from India, like TCS, HCL, Wipro, Infosys,
Satyam, Moser Baer, Safal, Suzlon, ONGC Videsh and Jet Airways, to name a few,
have already based their Europe-wide operations and have impressive business
portfolios in the Netherlands. A new milestone was crossed by the Indian business
with the historic investment in steel giant Corus by Tatas. Indian companies with
cutting-edge capabilities in the field of renewable energy and optical media have also
established themselves in the Netherlands. Apollo Tyres in India acquired a majority
stakeholding in the Dutch producer of tyres, Vredestein during 2009. Recently, a
firm Nederlandse Radiateuren Fabriek (NRF), a producer of parts for trucks and earth
moving machines had been taken over by the Indian firm Banco Products. At present
there are approximately 40 Indian companies having establishments in the
Netherlands.



9.     No new major trading agreements proposed/finalised during the month of
February 2010.

10.   The five principal import sources during the period January - December
2009:
                                           (All figures in bln Euros)
                                   Country          Dutch imports
                   1.             Germany                     54.411
                   2.              Belgium                    27.384
                   3.               USA                       23.453
                   4.               China                     21.913
                   5.                UK                       16.807

(Provisional figures - Source : Central Bureau for Statistics, Netherlands)
                                           7



             Five principal import sources during January to December 2009


     60

     50

     40

     30                                                                       Dutch imports

     20

     10

     0
          Germany    Belgium      USA          China      UK




11.  The five principal export destinations during the period January –
December 2009 :

                               (All figures in bln Euros)
                                        Country           Dutch imports
                     1.                Germany                    74.591
                     2.                 Belgium                   34.190
                     3.                  France                   27.597
                     4.                    UK                     26.156
                     5.                   Italy                   16.057

(Provisional figures - Source : Central Bureau for Statistics, Netherlands)



             Five principal export sources during January to December 2009


     80

     70

     60

     50

     40                                                                       Dutch imports

     30

     20

     10

     0
          Germany    Belgium     France         UK       Italy
                                       8


12.   The five principal import items during the period January - December
2009:

                                                                     (000’s Euro)
      1    33   Petroleum products, related materials                       34350155
      2    75   Office machines                                             21542338
      3.   54   Medicinal and pharmaceutical products                       20854484
      4.   76   Telecommunications Equipment                                17324851
      5.   89   Miscellaneous manufact. art., n.e.s.                        12943454



           Five principal import items during January to December 2009



                                                        Petroleum products, related
                                                        materials
                                                        Office machines

                                                        Medicinal and pharmaceutical
                                                        products
                                                        Telecommunications Equipment

                                                        Miscellaneous manufact. art., n.e.s.




13.    The five principal export commodities during the period January -
December 2009:


                                                                          (Euro ‘000)
1.         75   Office Machines                                               25317858
2.         33   Petroleum products, related materials                         24444269
3.         54   Medicinal and pharmaceutical products                         20640470
4.         76   Telecommunications Equipment                                  15781353
5..        77   Electrical machinery                                          13985594
                                          9


             Five principal export items during January to December 2009




                                                               Office Machines

                                                               Petroleum products, related
                                                               materials
                                                               Medicinal and pharmaceutical
                                                               products
                                                               Telecommunications Equipment

                                                               Electrical machinery




14.    The top five items of imports from India to The Netherlands and top five
      items of imports by India from The Netherlands during the period
      January - November 2009:

Imports from India
S.No.          SITC           Commodity                               Imports
                                                                      ‘000 Euros
1               33            Petroleum       products,       related         747309
                              materials
2               84            Articles of apparel and clothing.                          294106
3               78            Road vehicles, incl. air-cushion veh.                      171323
4.              05            Vegetables and fruit                                       104982
5               89            Miscellaneous manufact. art., n.e.s.                        94114



         Fi ve top items of import from India during January to December 2009




                                                           Petroleum products, related
                                                           materials
                                                           Articles of apparel and clothing.

                                                           Road vehicles, incl. air-cushion veh.

                                                           Vegetables and fruit

                                                           Miscellaneous manufact. art., n.e.s.
                                          10


The top five items of exports to India from The Netherlands during the period
January – December 2009


Exports to India
                   SITC       Commodity                                    Exports
S.No.                                                                      ‘000 Euros
1                  76         Telecommunications                                   196836
2                  51         Organic chemicals                                    157874
3                  28         Metalliferous ores and metal scrap                   188773
4                  74         General industrial machinery                          96950
5                  72.        Machinery spec. for particular indus                  93847


           Five top items of export to India during January to December 2009




                                                            Telecommunications
                                                            Organic chemicals
                                                            Metalliferous ores and metal scrap
                                                            General industrial machinery
                                                            Machinery spec. for particular indus




15.  Economic and Commercial events participated by/in cooperation with the
Embassy during the month of January 2010:

   i.     Ambassador of India, Mr. Manbir Singh was a keynote speaker at the
          Rotary Club on 2nd February 2010 where he addressed the club on, among
          other topics, march of Indian economy in the post independence era and its
          resilience in the wake of current global financial downturn.


   ii.    In order to showcase the latest innovations in the Dutch food and
          agribusiness to the Indian government and industry, the West Holland
          Foreign Investment Agency organised a visit for the Indian Ambassador
          Mr. Manbir Singh in the city of Lassingerland on 18th February 2010.
          Ambassador visited the flower auction house. Ambassador visited
          Mosanto and Anthura (a greenhouse company engaged in producing and
          exporting Anthuriums) and Green Q (an improvement centre working on
          transfer of lab research to field crops). The visit provided an opportunity
          to explore the possibilities of exploring the vast potential for mutual
          cooperation in these areas.
                                          11




16.    Other misc. economic/industry news from the Netherlands :


(i) Companies form new organisation to promote sustainability

        According to Media reports, the Netherlands is taking far too long to make the
transition to a sustainable economy, according to a group of 34 companies. They are
therefore forming a new employers’ organisation as an alternative to the VNO-NCW.
The new organisation, called De Groene Zaak, will press for a quicker response to
environmental and climate problems. The 34 companies that have already joined De
Groene Zaak include large companies such as TNT, food producer Wessanen, health
insurer Menzis and car leasing company Athlon.

           De Groene Zaak wants above all to show that sustainable enterprise can be
profitable. According to the organisation, there are major opportunities for business.
Successful examples are Tendris, a pioneering company in energy-efficient LED
lighting, and Van Gansewinkel, a waste recycling company.

(ii) ING reports losses again for 2009

        Bank-insurance company ING made a loss of 935 million euro last year,
despite assigning billion in risk to the State. Its American mortgages and real estate
portfolio were chiefly responsible for the result, which was slightly worse than in the
disastrous 2008.

        ING announced its lower than expected figures on the day that French bank
BNP Paribas revealed that its profits had doubled to almost six billion euro, and a day
after Britain’s Barclays announced an explosion of profits.


(iii) TenCate Acquires UK Armour-plating Company AML

      Technical textiles company TenCate is taking over the UK armour-plating
company AML UK. TenCate announced the move without giving the takeover price-
tag.

       AML UK has annual sales of about 10 million pounds. The company
specialises in the design and production of materials for armour-plating vehicles.
TenCate operates in this segment itself with its Advanced Armour unit, which works
for the UK defence ministry among other clients. The transaction will be completed
this month.


(iv) Rotterdam Port Transhipments Drop Slightly Less Than Expected
       Transhipments of goods in the port of Rotterdam dropped by 8.1 percent last
year to 387 million tonnes, according to definitive figures released by Rotterdam Port
                                            12


Authority. At the end of last year, the port authority was still bracing itself for a drop
of 8.5 percent. Transhipments of oil however only declined by 4 percent, less than the
earlier projection of a 6 percent fall.

In the past 30 years, there has only once been a bigger decline (9 percent), at the
beginning of the 1980s. Last year, transhipments of iron-ore and scrap metal were
hardest hits, shrinking by nearly half from 2009.


(v) Hospitality Sales Drop 3.5 Percent in 4th Quarter

       Sales in the hospitality sector dropped by 3.5 percent on average in the 2009
fourth quarter from a year earlier. This marks the sixth successive quarter of declines,
sector organisation KHN reports based on a survey by research bureau Synovate.

       In the first quarter, hospitality businesses expect the average sales decline to
slow to 0.9 percent. The economic situation is the main factor blamed for depressing
sales, followed by the smoking ban and weather conditions. Nine out of 10
businesses are considering measures to bolster operating profits, the most frequently
named being energy savings, savings on purchasing, investments and personnel and
adapting offerings to guests.

    The sales drop was sharpest in the hotels and restaurants sectors at minus 4.8
percent and minus 5.6 percent respectively, and businesses in the major cities were
harder hit than in the other regions.


(vi) Unemployment Among Immigrants Remains Three Times Higher

       Last year, 11.0 percent of the non-western population in the Netherlands were
unemployed. The rate among them is nearly three times as high as in the native Dutch
population.

      Unemployment declined over the past years among whites and people with a
non-western background. But as a result of the economic crisis, unemployment in the
non-western population in the Netherlands has risen in 2009 for the first time since
2005, according to the Central Bureau for Statistics (CBS).

       Unemployment among white Dutch increased last year to 4.0 percent from 3.2
percent in 2008. The unemployment rate in the non-western population increased to
11.0 percent from 9.0 percent.

(vii) Electric Commercial Van Manufacturer Duracar Bankrupt
        Duracar, a producer of electric commercial vans, was declared bankrupt
yesterday. The company received promised funds from a UK investor on its account
too late, according to CEO Wim Steenbakkers.

      The young company never got further than the production of a handful of
prototypes. "It was not due to the customers, nor to the partners, nor to management,"
                                            13


says Steenbakkers. "The shares were sold in October to an English party, but due to
legal vicissitudes, the money did not get through."

     Duracar was set up in 2007 by businessman Paul Hamm. He later brought the
company into Econcern, which went under last year. The receiver of Econcern sold
Duracar to the unnamed UK investor.


(viii) Retail Sales Down 4.9 Percent in 2009
    Turnover of the Dutch retail trade in 2009 was down by 4.9 percent on 2008.
Volume dipped by 4.8 percent. Prices stayed about the same, according to the Central
Bureau for Statistics.

   Non-food retail was particularly hard hit by the turnover downturn in 2009, losing
more than 7 percent. Shops in consumer electronics, DIY and home furnishings saw a
massive dip in turnover. Drugstores saw a slight sales increase.

    Besides the non-food retailers, petrol stations also had substantially less turnover
than in 2008. Their turnover was over 11 percent below the 2008 level. This turnover
development was related to the sharp dip in fuel prices in 2009.

    Turnover of food, beverages and tobacco stores was up by almost 1 percent. In
contrast to previous years, supermarkets did not realise volume growth in 2009. Their
sales increased entirely due to price rises of nearly 2 percent.


(ix) Three Dutch Regions in Top-20 of EU’s Richest

       Three Dutch regions are among the 20 richest in the EU, Eurostat reported.

      The Netherlands had five regions in 2007 where GDP per head of the
population was more than one-quarter higher than the average throughout the EU.
Groningen, Utrecht and Noord-Holland were in the top 20 of EU regions with the
highest average per-capita GDP. They come 8th, 16th and 19th respectively.


(x) Schiphol Passenger Traffic Cut by 7.7 percent last year

    Schiphol Groep is forecasting that passenger numbers and freight volume "will
grow slightly" in the current year. It is projecting net profit "about the same as" the
figure for 2009.

    The airport group reported that 2009 net profit was down 29 percent at 132
million euros. Pre-tax profit was more than halved from 2008 to 124 million euros,
while revenues were about unchanged at 1.15 billion.

    Passenger numbers shrank by 7.7 percent last year, and freight volume plunged
17.7 percent. Schiphol will axe another 16 percent of its jobs this year. Last year, it
pruned the workforce by 5.4 percent to 2,395.
                                          14




(xi) Amsterdam Attracts 18 European Head Offices

     Last year, 105 foreign companies located in Amsterdam and environs, including
18 European head offices. Annual figures from the Amsterdam region showed that
the 105 international companies are creating 1,255 new jobs. In 2008, the same
number of foreign companies came to the capital and surrounding areas, but this only
created 750 new jobs. The city council noted the number of Asian companies
locating in the capital last year was notably higher than in the previous year: 37
compared with 31 in 2008. As well, 33 companies from North America and 35 from
Europe came to Amsterdam.

    As in 2008, the biggest number of new companies came from the ICT sector.
Other well-represented sectors are financial and business services and the creative
industry. According to the municipality, there are currently 1,900 international
companies based in the Amsterdam region. They provide some 17 percent of local
employment.


17.    Trade Enquiries handled by the Embassy during the month of January
2010 :

FROM NETHERLANDS:             27

FROM INDIA:                   44

(In addition to the above, 53 business enquiries on telephone were answered).

18.     Trade Publication

        The Embassy brought out the India Economic News Bulletin for February
2010.




                                                                         (K.K. Saini)
                                                             Second Secretary(E & C)


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