PM Modi Netherlands Visit: India-Netherlands Strategic Partnership and Semiconductor Diplomacy

Why in News Prime Minister Narendra Modi arrived in The Hague, Netherlands on May 15, 2026 for a two-day official visit (May 15-17), the second leg of his five-nation tour. The visit will formalise a Strategic Partnership between India and the Netherlands. The Netherlands is India’s 4th largest investor (cumulative FDI ~USD 55.6 billion) and home to ASML – the world’s sole manufacturer of Extreme Ultraviolet (EUV) lithography machines, which are essential for advanced semiconductor fabrication. India’s India Semiconductor Mission (ISM) makes this visit strategically significant.

India-Netherlands Bilateral – Snapshot

The Strategic Partnership – Significance

A “Strategic Partnership” is a formal diplomatic upgrade denoting sustained, structured engagement across multiple high-priority domains. For India, strategic partnerships are relatively selective:

The India-Netherlands partnership will cover: semiconductors and technology, water management, green hydrogen, AI and digital infrastructure, and defence cooperation.

ASML and Semiconductor Diplomacy

What Is ASML?

Advanced Semiconductor Materials Lithography (ASML), headquartered in Veldhoven, Netherlands (near Eindhoven), is the world’s only manufacturer of EUV (Extreme Ultraviolet) lithography machines – the equipment needed to print transistor patterns on chips at 5 nm, 3 nm, and 2 nm nodes.

Why It Matters for India

• Advanced chip fabrication (below 7 nm) requires EUV machines – no EUV = no leading-edge chips
• India’s India Semiconductor Mission (ISM) – launched February 2024, outlay Rs 76,000 crore – aims to build domestic fab capacity
• ASML machines are export-controlled (Dutch and US government permission required); access is geopolitically gated
• The Netherlands controls technology transfer in this space; a Strategic Partnership opens the pathway for technology dialogue

Current Status

• ASML has agreed to engage with India on training, component manufacturing, and R&D collaboration (not yet machine sales – those require government-level export approvals)
• Dutch government has strategic interest in diversifying its semiconductor customer base beyond China

Water Management – A Unique Dutch Expertise

The Netherlands is the global leader in delta and coastal water management – relevant to India’s:

• Flooding vulnerabilities (Assam, Bihar, coastal Andhra Pradesh)
• Urban flooding (Mumbai, Chennai, Hyderabad)
• Agricultural water management (command area development, drip irrigation)

Existing cooperation: Indo-Dutch Joint Working Committee on Water Management (active since 2013); Dutch companies like Deltares, Royal HaskoningDHV, and Arcadis have India projects.

Green Hydrogen – Netherlands Angle

• Netherlands is building Delta Rhine Corridor (a hydrogen pipeline network)
• Indian green hydrogen exporters (ACME, Adani Green, NTPC) have discussed potential supply to European hydrogen markets
• India-EFTA TEPA (October 2025): EFTA includes Norway but not Netherlands (Netherlands is EU); however, the India-EU bilateral also has a green energy partnership track
• Netherlands’ Rotterdam port is positioned as Europe’s hydrogen import hub – India as a future supplier

UPSC Relevance

GS Paper 2 – International Relations

• India-Europe bilateral relations; strategic partnerships
• India’s semiconductor diplomacy; technology access and geopolitics

GS Paper 3 – Science and Technology, Economy

• India Semiconductor Mission; chip manufacturing; EUV technology
• Green hydrogen; water management

Mains Angles

1. India’s semiconductor mission requires access to advanced lithography technology controlled by the Netherlands (ASML). Discuss how technology diplomacy shapes India’s strategic partnerships with European nations.
2. The Netherlands is India’s 4th largest investor despite being a small European country. Examine the sectors and institutional mechanisms that drive this economic relationship.
3. Water management cooperation with the Netherlands can address India’s flood and drought vulnerabilities. Assess the potential and the implementation challenges.

Facts Corner – Knowledgepedia

ASML: Advanced Semiconductor Materials Lithography; HQ Veldhoven, Netherlands (near Eindhoven); world monopoly on EUV (Extreme Ultraviolet) lithography machines; also makes DUV (Deep Ultraviolet) machines; essential for semiconductor fabrication below 7 nm.

India Semiconductor Mission (ISM): Launched February 2024 under MeitY; outlay Rs 76,000 crore (USD ~9 billion); aims to support fabrication, OSAT (Outsourced Semiconductor Assembly and Test), and design.

ISM approved projects (by 2026): Tata Electronics (Dholera, with PSMC of Taiwan); CG Power (Sanand, with Renesas of Japan); Kaynes Semicon (Sanand, with SJ Semiconductor of China – later revised); ISMC (with Tower Semiconductor of Israel, paused).

EUV machine: Costs approximately USD 150-200 million per machine; uses 13.5 nm wavelength light; produced only by ASML in Veldhoven; each machine contains 100,000 parts from 5,000 suppliers across 40 countries.

Netherlands-India FDI: Partly routing; many multinationals incorporate in Netherlands (Shell, Unilever, IKEA) for tax/legal structures before investing in India – so the cumulative figure of ~USD 55.6 bn includes pass-through investment.

Delta Rhine Corridor (Netherlands): Underground hydrogen pipeline network connecting Rotterdam, Antwerp, and German industrial zones; operational target 2026.

India-EFTA TEPA: Trade and Economic Partnership Agreement; signed in March 2024; operational since October 2025; EFTA = Iceland, Liechtenstein, Norway, Switzerland (NOT Netherlands – Netherlands is EU member).