India and the Netherlands upgraded their bilateral relationship to a strategic partnership following comprehensive talks between Prime Minister Narendra Modi and his Dutch counterpart, Rob Jetten, in The Hague. The leaders also witnessed the signing of a pivotal agreement between Tata Electronics and ASML, aimed at supporting the establishment of a semiconductor fabrication plant in Gujarat's Dholera region. Prime Minister Modi hailed this collaboration as a significant milestone in India's journey to build a robust semiconductor ecosystem within the country.
Strategic Partnership Focus Areas
Dutch Foreign Minister Tom Berendsen, in an interview with TOI, elaborated that the new strategic partnership will concentrate on trade and investment, security, innovation, and people-to-people ties. The two prime ministers welcomed the partnership between Tata Electronics and ASML for India's first front-end semiconductor Fab in Gujarat, as confirmed by the Ministry of External Affairs (MEA).
ASML's Role in Semiconductor Manufacturing
The Netherlands boasts one of the world's most advanced semiconductor ecosystems, with Dutch multinational ASML being the leading supplier of high-precision lithography equipment—a critical requirement in the manufacturing of semiconductor chips. Prime Minister Modi expressed optimism, stating, "Semiconductor chips will be manufactured in India using ASML's equipment. The optimism towards India is clearly visible in all of your words today. We guarantee that this optimism will translate into an outcome." He made these remarks during a roundtable with Dutch CEOs.
New Golden Era in India-Europe Relations
Modi declared that the year 2026 marks the beginning of a new golden era in India-Europe relations. "This year, we signed the historic India-EU Free Trade Agreement. This agreement, between the world's two largest democratic and responsible powers, will become a strong foundation for shared prosperity," he said.
Key Decisions and Future Roadmap
Ahead of his meeting with the Dutch PM, Modi indicated that the two countries would take several decisions during his visit, including elevating the trusted relationship to a strategic partnership and launching an ambitious joint roadmap in green hydrogen to ensure technology ties are future-ready. According to the MEA, Modi's visit focused on building upon the momentum of high-level engagements and close cooperation spanning diverse sectors, including defence, security, innovation, green hydrogen, semiconductors, and a strategic partnership on water.
The Netherlands is one of India's largest trade destinations in Europe, with bilateral trade worth $27.8 billion in 2024-25, and it stands as India's fourth-largest investor, with cumulative FDI of $55.6 billion.
