Under the agreement both countries could also encourage greater research collaborations among their universities, foundations, industry and the health services, an official statement said.
The Memorandum of Understanding (MoU) was signed by Health and Family Welfare Minister Ghulam Nabi Azad and his Dutch counterpart Edith I Schippers.
Azad said the strengthening of cooperation between the two countries would result in mutually beneficial exchanges.
"This is a very positive development and a step forward from the sectoral MoU between respective food regulatory authorities in the area of food safety," he said.
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Azad expressed his happiness that the United Nations had recognised the importance of health in the next generation of global development goals beyond 2015, suggesting an illustrative goal of "ensuring healthy lives".
The agreement coincides with the ongoing debate on the development goals the global community should set next, he added.
Schippers had visited New Delhi in May 2012 when the both countries explored the possibilities of cooperation in public health and drug regulatory mechanisms.