The first meeting between India and Luxembourg in 20 years results in three new bilateral agreements
- India and Luxembourg have signed three new bilateral agreements after leaders of the two countries held their first formal interaction in over two decades.
- All three agreements are in the financial space to promote trade ties between India and Luxembourg with the latter being the third largest foreign investor in India.
- The Ministry of External Affairs Joint Secretary revelaled that discussions around the India-EU Trade and Investment Agreement have been initiated and an agreement between space agencies in both countries may be signed soon.
Delhi’s has been ramping up its relations in Europe. Of the six virtual summits this month, four have been within the continent — first the EU, then Denmark and Italy and now Luxembourg.
“The meeting focused constructive engagement on our bilateral relationship, especially given the strength of the Luxembourg economy and our needs. It focused on the financial sector, fin-tech, green financing and space applications,” said Ministry of External Affairs Joint Secretary Sandeep Chakravorty.
AdvertisementThe three agreements that have been signed are:
- Luxembourg Stock Exchange with State Bank of India (SBI)
- Luxembourg Stock Exchange with the India International Stock Exchange (INX)
- LuxInnovation and Invest India
The third agreement between LuxInnovation and Invest India is to support and develop mutual business cooperation between Indian and Luxembourg companies, especially when it comes, promoting and facilitating inbound FDI.
“Luxembourg Stock Exchange and funds based out of Luxembourg are the third largest investors in India. Foreign portfolio investments from Luxembourg total more than ₹3 lakh crore. It is the largest after the US and Mauritius,” said Chakravorty.
Upcoming agreement in the space sector
The Indian Space Research Organisation’s (ISRO) commercial arm, New Space India Limited (NSIL), launched four satellites for Luxembourg just last week.
According to Chakravorty, the bilateral relationship between the two countries may be further strengthened with an agreement between ISRO and Luxembourg space organisation. “There is a lot of potential between the two countries when it comes to cooperation in space,” he said without divulging any further details.
AdvertisementIndia’s invites Luxembourg to join the International Solar Alliance
Bettel mentioned Luxembourg’s financing mechanisms available in Luxembourg and asked Modi to encourage Indian companies to raise capital for environmentally friendly green projects in the country. In fact, the first ‘masala’ bonds were raised in Luxembourg and many Indian companies are listed on the Luxembourg Stock Exchange.
During his address, Modi also invited Luxembourg to join the International Solar Alliance — an initiative launched by India between 121 countries with a focus on the utilisation of solar power. It is the second largest grouping of states worldwide after the United Nations. According to Chakravorty, Beetle indicated that he may take Modi up on the offer.
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