The first meeting between India and Luxembourg in 20 years results in three new bilateral agreements

The first meeting between India and Luxembourg in 20 years results in three new bilateral agreements
Indian Prime Minister Narendra Modi speaking at the Virtual Summit between India and Luxembourg today on November 19Live webcast
  • 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.
The first ever meeting between the leaders of India and Luxembourg in 20 years has yielded fruitful results with three new bilateral agreements signed between the two countries. And, since Luxembourg is a founding member of the European Union (EU), discussion around the India EU trade and investment agreement were also initiated.

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.

Advertisement
The 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 agreements with the Luxembourg Stock Exchange provide for cooperation in the financial services industry. It will enable the maintenance of security markets in both counties with a focus on ESG (environmental, social and governance) and green finance in the local market.

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.
Advertisement


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.

Advertisement
India’s invites Luxembourg to join the International Solar Alliance
Prime Minister Narendra Modi and Luxembourg counterpart Xavier Bettel also discussed issues of terrorism and climate change.

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.

Advertisement
SEE ALSO:
Loan moratorium case: India’s power sector players want the Supreme Court to ‘plug’ the loopholes in RBI’s restructuring scheme

Wipro CEO Delaporte’s new plan could give the Indian IT services giant the edge it needs to catch up to its peers, according to analysts

Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months

{{}}