The Hindu Business Line : Amsterdam markets itself as EU hub for India Inc

Recently in Amsterdam The city of Amsterdam is all set to try and replicate the success it has had with inviting Indian IT firms to its shores by wooing companies in other sectors as well. The Netherlands, and Amsterdam in particular, is actively calling companies in the life sciences, health, infrastructure, logistics and agro industry to set up base there for their European operations.

“More and more Indian businesses are choosing the Amsterdam region as the operating base for their Pan-European activities. Large IT service providers such as Tata Consultancy Services, Infosys Technologies and Wipro Technologies were the first to come, establishing offices in the new business centre in the southern part of the city.

“In their wake came enterprises and investors from other sectors. These Indian companies have been carving themselves a place in the established order and have developed into full service businesses,” Mr Lodewijk Asscher, Amsterdam’s Deputy Mayor, told Business Line during a visit arranged by Amsterdam Partners, the city’s promotional arm.

Tax-friendly

Besides, Mr Asscher said that Amsterdam has on offer an attractive tax climate for foreign firms and professionals. “The corporate tax rate is lower than the European average, and the tax treaty between India and the Netherlands safeguards against a double levy. Expats benefit from an exemption rule, meaning that 30 per cent of their Dutch income is effectively tax-free. Moreover, they and their families can now also take advantage of a recently introduced fast-track application procedure for residence permits,” he said.

‘Good European base’

TCS, which has been among the flag bearers of the Indian industry and has headquartered its European operations in Amsterdam, echoes the sentiment. “We started out as an IT applications developer, but today we have evolved into an IT services provider with a full service concept. The largest part of our turnover comes from advising our customers on how they can improve the efficiency of their businesses, and from developing and implementing solutions to support this.

“Our clients require us to be able to give them direct support, and to be familiar with their markets and working environments. This is why we chose Amsterdam. Not only are most of the large European companies based or represented here, it’s also a good base from where to better serve the European continental market,” TCS’ Director Europe Mr Girish Ramachandran said.

In a bid to step up the interactions between the business community of both countries, Mr Asscher will be in New Delhi to attend a FICCI-Amsterdam Chamber of Commerce- Meeting on Monday along with a Dutch delegation. The Netherlands Foreign Investment Agency (NFIA), in association with Amsterdam Metropolitan Area and NASSCOM, is also hoping to ramp up its engagements with IT companies based out of Bangalore through a focused executive briefing, titled ’Amsterdam – IT Hub for Europe’.

Business relations between the two countries are expected to get a further boost with business leaders from both sides set to engage one another at the high-level Netherlands-India Business Meet 2008 (NIBM) being organised on November 20-21, 2008 in Amsterdam.