NFIA to interact with Indian IT companies for investments in the Netherlands

- Vice Mayor of the City of Amsterdam to interact with leading Indian corporates

Bangalore, October 09, 2008 – The Netherlands Foreign Investment Agency (NFIA) in association with Amsterdam Metropolitan Area and NASSCOM, announced its plans to increase its interaction with India’s leading corporates in Bangalore. NFIA will reach out to leading corporates in the Information Technology sector through a focused executive briefing titled – ‘Amsterdam – IT Hub for Europe’ on Tuesday, October 14th, 2008, starting at 4:30 p.m. at the Grand Ashok Hotel in Bangalore. The briefing in Bangalore is the first in a series of two events.
Companies interested in attending the executive briefing can register at Itevent {at} nfia-india(.)com.
Journalists who would like to attend the executive briefing session, please write to meha {at} nfia-india(.)com.

The executive briefing will showcase the strengths and advantages that the Netherlands offers as a strategic business destination for corporates who want to establish or expand their operations in Europe. Many leading Indian corporations such as TCS, Tata Steel, Wipro, Suzlon Energy, Genpact, Moser Baer, Infosys, Aurobindo Pharma, and Polaris Software, have already taken advantage of the benefits the Netherlands offers in this respect.

The executive briefing will commence with a keynote address by NASSCOM and a presentation by Mr. Lodewijk Asscher, Vice Mayor, City of Amsterdam on ‘Think IT, Think Amsterdam’. The strengths of the Netherlands as a bridge-head to Europe will be exemplified through first hand experiences of leading Indian and global multinationals – TCS, Satyam, Wipro and Cisco Systems. A panel discussion will highlight how Indian companies can set up IT business operations in the Netherlands and where they can get assistance and advice on such important issues as registration of a branch or subsidiary, taxation, visa and immigration.

The executive briefing session coincides with the visit of an official and economic delegation from The Netherlands headed by the Vice Mayor of the City of Amsterdam, Mr. Lodewijk Asscher. The delegation will be interacting with Indian companies to promote the Netherlands as an investment destination and will include the Deputy Mayor of the City of Amstelveen, the Director Foreign Investment of the City of Amsterdam and business leaders from the Amsterdam Chamber of Commerce, KLM, Rabobank, Ernst & Young, NYSE Euronext, among others.

Mr. Robert V. Schipper, Executive Director, NFIA India said, “We have more than 5000 foreign companies having operations in the Netherlands. At the moment around 50 of these companies are headquartered in India and their number is rapidly increasing. In 2007 alone, more than 10 Indian companies have set up or acquired new operations in the Netherlands, which emphasizes the fact that the Netherlands offers great advantages to the new age businesses and it has emerged as the preferred choice amongst Indian companies as a strategic investment destination.”

Past studies indicate that Europe accounts for around 30% of the global IT services market. According to IDC estimates, IT services spending in Western Europe is expected to grow at a CAGR of 11% in the medium term. Gartner opines that Western Europe is expected to become the next frontier for growth. The India-based IT service providers in general have not penetrated the Western European IT services market to the extent they have in the US market, but all indications are that this is the next target growth area for offshore services, suggests the research firm. Naturally, Indian players are looking at Europe to offset the slowdown in the US.

“NFIA recognizes the investment potential that India has on offer and has ambitious plans for attracting investments from major Indian businesses looking to expand their operations in Europe. The seminars will enable us to showcase to our target audience the advantages of having a business set up in the Netherlands,” added Mr Schipper.

The pro-business environment of the Netherlands is underlined by high rankings in recent international competitiveness studies, such as those of the Economist Intelligence unit. One particularly attractive feature of the Netherlands business environment is the Dutch tax climate for international companies. In 2007 the corporate tax rate has been lowered to 25.5%, which is below the EU average. Dividend tax has been reduced from 25% to 15%. Furthermore, a patent box with a 10% tax rate on income from innovations was introduced. The Netherlands has no withholding tax on interest and royalties and has tax treaties with over 80 countries including India in order to avoid double taxation and bring withholding tax on dividends even down to zero. In addition to the stable fiscal climate, the Netherlands offers an international business environment, excellent infrastructure, highly educated and multilingual workforce and an enviable quality of life making it an ideal investment destination in Europe.

About NFIA India
The Netherlands Foreign Investment Agency (NFIA) was initiated by the Netherlands Ministry of Economic Affairs to attract foreign investments into The Netherlands. Going by the enthusiastic response of the Indian companies, Netherlands Ministry of Economic Affairs decided last year to set up an office of its inward investment agency, the Netherlands Foreign Investment Agency (NFIA), as part of The Netherlands Embassy in New Delhi. The Agency’s task is to promote the unique position of the Netherlands as a gateway to Europe and a bridgehead for Indian companies to successfully conquer the European market. The NFIA office in New Delhi assists and advises Indian companies who wish to take advantage of the excellent Dutch business environment as a strategic base to cover Europe. For more information on NFIA India, please log on to http://www.nfia-india.com

For further information, please contact: Murali R, Mob 9945511831