Overall Situation

Netherlands is 6th largest economy in the Euro zone despite being a small country. It has well
defined and developed financial eco system. Its noted for its stable industrial relations, trade
surplus, low unemployment and inflation rate.

India on the other hand, is a developing economy and still adjusting with other developed global
economies. The financial system, in India, is still developing from banking system reforms to trade
policies, every aspect is dynamic.

Foreign Investment

Netherlands, being small country, always had its roots ties up with foreign trade and operations.
Foreign Trade has always been a significant income generation source, exports being 677.87 billion
Ranked 6th. 52% more than India, all this has led Netherlands to a foreign investment and capital inflow
friendly nation from the very beginning, with major decision of this front being taken in 1961 with
acceptance of Article VIII of the Fund’s article of Agreement.

India, post-independence, emphasised to Inward Looking Strategy wherein the nation looked to reduce
imports and increase exports, to support the local industries. But eventually the decision was reversed
due to its certain negative implications on nation’s debt, foreign reserves and eventually L.P.G
(Liberalisation-privatisation-globalisation) policy was introduced and eventually foreign capital inflow
was welcomed with $81.72 billions being FDI inflow just in the year of 2020-2021.

Outlook- Monetary Policies

Netherlands, stance has always being of Moderate Monetarism. It acknowledged the crucial role of
fiscal policies, fixed exchange rates and wage development in supporting price stability. But as time
went on, rather than trying to stabilize the fluctuations and stimulating the economy, it was found
out the Dutch authorities kept lying on the topic of price stability. And with further developments
and inherited situation, the Dutch monetary policy has just became pure exchange rate policy.

Indian monetary strategy, before 1991, has mainly been anti inflationary. But after the revolutionary
policy of LPG, the monetary policies has changed a lot with recent development being, setting up of
Monetary Policy Committee, which looks after changing monetary policy time to time. Further the
current CRR rate and SLR rate stand at 4.00% and 18.00%.

Governing body for EXIM policies

Netherlands has no separate governing body for policies formulation. Basically the foreign trade
policies are based on 4 commitments; to the Atlantic Cooperation to European integration,
to international development and to international law. Other concerning activities are handled by
the Netherlands Ministry of Foreign Affairs, the boards is active from last 50 years focused on
developing sustainable trade relations.

India on the other hand, has a different governing body whose sole concern is to formulate foreign
trade policies. Its known as the Directorate General of Foreign Trade (DGFT), the governing body
for the promotion and facilitation of exports and imports under the Ministry of Commerce and
Industry. Normally a member of Indian Administrative Services having rendered for 30 years or
more is appointed as DGFT.

Schemes under EXIM Policies

Netherlands has no specified schemes for the matter of foreign trade. Foreign trade related matters
are directly handled and treated individually by the government regulated body of Netherlands
Ministry of Foreign Affairs.

In India, EXIM policies has more than 10 schemes, defined by the concerned bodies of Ministry of
foreign Affairs. The schemes acts as guidelines for the exporters and importers, which are updated
every 5 years generally. Few of the main schemes being IEC (Importer – Exporter code ), MEIS, SEIS
and EPCG scheme.

Differences Netherlands India

1)Overview Netherlands is 6th largest
economy in the Euro zone
despite being a small country.
It has well defined and
developed financial eco
system. Its noted for its stable
industrial relations, trade
surplus, low unemployment
and inflation rate.
India on the other hand, is a
developing economy and still
adjusting with other
developed global economies.
The financial system, in India,
is still developing from banking
system reforms to trade
policies, every aspect is
dynamic.

2)Foreign Capital inflow Netherlands, being small India, post-independence,

country, always had its roots
ties up with foreign trade and
operations. Foreign Trade has
always been a significant
income generation source,
exports being 677.87 billion
Ranked 6th. 52% more than
India, all this has led
Netherlands to a foreign
investment and capital inflow
friendly nation from the very
beginning, with major decision
of this front being taken in 1961
with acceptance of Article VIII
of the Fund’s article of
Agreement.
emphasised to Inward Looking
Strategy wherein the nation
looked to reduce imports and
increase exports, to support the
local industries. But eventually
the decision was reversed due
to its certain negative
implications on nation’s debt,
foreign reserves and eventually
L.P.G (Liberalisation-
privatisation-globalisation)
policy was introduced and
eventually foreign capital inflow
was welcomed with $81.72
billions being FDI inflow just in
the year of 2020-2021.

3) Governing body for EXIM Netherlands has no separate India on the other hand, has a
policies governing body for policies different governing body
formulation. Basically the whose sole concern is to

4) Schemes under EXIM
Policies
5) Outlook- Monetary Policies
6) Difference from numbers
point of view
foreign trade policies are
based on 4 commitments; to
the Atlantic Cooperation
to European integration,
to international
development and
to international law. Other
concerning activities are
handled by the Netherlands
Ministry of Foreign Affairs, the
boards is active from last 50
years focused on developing
sustainable trade relations.
Netherlands has no specified
schemes for the matter of
foreign trade. Foreign trade
related matters are directly
handled and treated
individually by the government
regulated body of Netherlands
Ministry of Foreign Affairs.
Netherlands, stance has
always being of Moderate
Monetarism. It acknowledged
the crucial role of fiscal
policies, fixed exchange rates
and wage development in
supporting price stability. But
as time went on, rather than
trying to stabilize the
fluctuations and stimulating
the economy, it was found out
the Dutch authorities kept
lying on the topic of price
stability. And with further
developments and inherited
situation, the Dutch monetary
policy has just became pure
exchange rate policy.
India is the fifth largest
recipient of FDI inflows in the
entire world and stands in
63rd position in EoDB rank.
GDP being $1.84 trillion
formulate foreign trade
policies. Its known as the
Directorate General of Foreign
Trade (DGFT), the governing
body for the promotion and
facilitation of exports and
imports under the Ministry of
Commerce and Industry.
Normally a member of Indian
Administrative Services having
rendered for 30 years or more
is appointed as DGFT.
In India, EXIM policies has
more than 10 schemes,
defined by the concerned
bodies of Ministry of foreign
Affairs. The schemes acts as
guidelines for the exporters
and importers, which are
updated every 5 years
generally. Few of the main
schemes being IEC (Importer –
Exporter code ), MEIS, SEIS
and EPCG scheme.
Indian monetary strategy,
before 1991, has mainly been
anti inflationary. But after the
revolutionary policy of LPG,
the monetary policies has
changed a lot with recent
development being, setting up
of Monetary Policy
Committee, which looks after
changing monetary policy time
to time. Further the current
CRR rate and SLR rate stand at
4.00% and 18.00%.
Netherlands is the first largest
recipient of inflows as it has a
good financial system.
Netherlands stands in 42nd
position in EoDB rank
Ranked 11th. 2 times GDP being $772.23 billion
more than Netherlands Ranked 19th.