- Luxembourg Relations

India enjoys friendly and warm relations with Luxembourg. Relations are further strengthened through regular exchange of high-level visits between the two countries.

Political Relations:

Bilateral Visits:In the recent past, important visits from India to Luxembourg include the following:

- Mrs Preneet Kaur, Minister of State for External Affairs on 18 April, 2012; - Smt. Meira Kumar, Hon'ble Speaker of led a high level Parliamentary Delegation from June 10-13, 2010; - Mr. , Minister of Overseas Indian Affairs from 29-30 September 2009 during which an Agreement on Social Security was signed; and - Mr. , Minister of Steel, Chemicals and Fertilizers, in September 2006. - Sh K R Narayanan, Hon’ble President of India visited Luxembourg in September 1998.

The visits from Luxembourg to India include the following:

- Mr. Laurent Mosar, President of the Chamber of Deputies led a Parliamentary delegation to New Delhi from 28 February - 2 March 2012 at the invitation of the Hon'ble Speaker of the Lok Sabha, Smt. MeiraKumar. The delegationhad meetings with Hon’ble Speaker, Lok Sabha, Leader of Opposition, Minister of Parliamentary Affairs, MOS(PK) and Chairman, Standing Committee on External Affairs; - Mr. JeannotKrecke, Minister of Economy and Foreign Trade, visited India from 9-14 January 2010 leading an economic delegation. He, earlier in April 2007 also, had led an Economic Mission to India; - Mr. Luc Frieden, Minister of Budget and Treasury had visited in January 2007, - Mr. Jean Asselborn, Deputy Prime Minister and Foreign Minister, in February, 2007; - In 1999 the Luxembourg Prime Minister had visited India.

The Hereditary Crown Duke of Luxembourg was scheduled to visit India in November, 2013, along with a business delegation. However, this visit was postponed due to political crisis in Luxembourg which has led to holding of early elections in October, 2013. The visit is now being scheduled in November 2014.

Cooperation in multilateral Fora (UNO): United Nations: Luxembourg has extended its support to India's permanent seat in the UNSC during the visit of President KR Narayanan in 1998 and had co-sponsored the G-4 resolution in 2005. It has also extended its support to India's candidature to UNSC for the period 2011-12 on reciprocal basis. Luxembourg had opposed embargoes against India in the aftermath of the nuclear tests of 1998. India supported Luxembourg’s candidature for the successful bid to the non- permanent membership of the UN Security Council for the period 2013-2014 at the election held on 18 October 2012. Embassy in Luxembourg: During the State visit of the Hon'ble late President K. R. Narayanan to Luxembourg in September 1998, it was agreed by both sides to open their Embassies in each other's Capitals. However, while Luxembourg opened its Embassy in New Delhi in February 2002, India is yet to do so in Luxembourg. Luxembourg also has an Honorary Consulate in Kolkata and Mumbai and has requested for appointing two Honorary Consuls in Bangalore and Hyderabad. At present, Ambassador of India in Brussels is also accredited to Luxembourg in addition to an Honorary Consul General stationed in Luxembourg.

Important Bilateral Treaties and Agreements:

- Memorandum on Cooperation in the field of health, signed in New Delhi on 8 May 1996. - Cultural agreement, signed in New Delhi on 10 September 1996. - Agreement on cooperation for supply of equipment for cold chain system for blood and blood products, signed in New Delhi on 15 April 1997. - Bilateral Investment Protection Agreement (BIPPA) signed in November, 1997 with BLEU. - Air Services Agreement, signed in New Delhi, on 8 January 2001. The ratification process on the Luxembourg side was completed on 9 May 2003. The Luxembourg side has requested for response on similar process having been completed by the Indian side. Indian response is awaited. - Agreement by exchange of letters on steel technology, signed in New Delhi in February 2003. - Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, signed in New Delhi on 2 June 2008. (The agreement entered into force initially on 9 January 2009 and the revised agreement incorporating provisions on exchange of information on request between tax administrations utilizing the MFN clause in the agreement also entered into force on 1 January 2010 for Luxembourg and on 1 April 2010 for India.) - Social Security Agreement signed on 30 September 2009 and entered into force on 1 June 2011.

Commercial Relations:

Luxembourg companies particularly in sectors such as steel, automotive equipment and IT are exploring opportunities in India to diversify their markets. In its efforts to strengthen relations with India, Luxembourg opened its Embassy in Delhi in 2002. The other countries where Luxembourg has Embassies in Asia are China, Japan and Thailand.

The full range of bilateral economic relations is discussed under the framework of India-Belgium-Luxembourg Economic Union (BLEU) Economic Joint Commission. The 13th round of meeting of India-BLEU JCM took place on 01-02 July, 2013. During the meeting, India and Luxembourg noted the improvement in their trade in the past few years and acknowledged the need for more focused dialogue to further intensify economic cooperation.

India and Luxembourg have a longstanding cooperation in the steel sector. A bilateral Agreement to cooperate in steel technology was signed in February, 2003 to increase exchanges in the steel sector. The Paul Wurth Company, which has been in India for the last two decades, is playing an important role in upgrading steel sector in India in collaboration with SAIL, TISCO, Jindal Steel, etc. (Most of Luxembourg exports to India are made to the Paul Wurth Company.) Other Luxembourg based companies such as ArcelorMittal, John Zink International Luxembourg (known as Koch Chemical Technology Group India Pvt. Ltd in India) which supplies low emission and clean combustion equipment to Refineries / Petro-Chemical and Fertilizer Plants; Husky, Dometic, CERATIZIT, EMDI Europe S.A. (EMDI) etc are also present in India.

Another area where cooperation has been growing has been the civil aviation sector. Chennai is the Indian hub for Luxembourg's all-cargo airline Cargolux. Many Indian freight forwarders work with Cargolux to route their European exports efficiently and rapidly (garments, shoes, machinery, original spare parts for European car makers, etc.). An aviation agreement was signed in 2004 to formalize this relationship. Cargolux has been operating 3 scheduled weekly flights ex-Chennai since 2004. These flights were temporarily suspended for some time on account of high fuel and operating costs. However, the flights have resumed in May 2009.

Luxembourg had organized an economic mission to India in January 2010 for developing bilateral trade and business relations. The high-level trade delegation, headed by MrJeannotKrecké, Minister of Economy and Foreign Trade went to Delhi, Kolkata and Bombay for seminars and business-to-business contacts. Luxembourg also places special emphasis on cooperation in the automotive sector. Luxembourg companies participated in the Auto Expo in New Delhi (January 5-11, 2010). More than a dozen companies are present in this field. With India fast developing its own auto-components sector, Luxembourg companies are looking for synergies in the sector.

Luxembourg is home to one of the largest investment fund industry in the world. Luxembourg based investment funds hold a substantial banking and asset management market share in portfolio investments in India. There are about 150 foreign owned banks in Luxembourg, however none from India. Luxembourg is keen on Indian banks opening branches in Luxembourg which could provide opportunities to tap on local expertise and gain from the proximity to the European Investment Bank, which is headquartered in Luxembourg. More than 100 Indian companies are listed on the Luxembourg stock exchange through global depository receipts.

Bilateral Trade:Bilateral trade between India and Luxembourg stood at € 52.1 million in 2013 (January to December) with exports from India to Luxembourg at € 39.5 million and imports to India at € 12.6. The major items of India’s exports to Luxembourg were textiles and garments, chemicals and engineering products. The major items of India’s imports from Luxembourg were engineering goods, chemicals, base metals, plastics and allied products. The bilateral trade has decreased by 18% when compared to 2012 during which period it stood at € 63.4 million. During meeting of the 13th India-BLEU JCM has set a target of € 200 million to be achieved by 2015 for India Luxembourg bilateral trade.

Bilateral Investment:FDI flows from Luxembourg to India between 2000 and 2013 are about US$ 489 million, making it the 25th most important investor in India. The sectors that attracted maximum investments from Luxembourg include trading, computer software & hardware, services sector, agricultural machinery and chemicals.

Indian community:

There are around 700 Indians in Luxembourg of which 300 are PIOs and remaining 200 are Indian passport holders, while others have acquired various nationalities. There is one Indian Association which coordinates cultural and other activities of the Indian community in Luxembourg. In March 2009, an Indian Business Chamber of Luxembourg (IBCL) was constituted to promote commercial relations between India and Luxembourg. The Chamber expects to facilitate business activities and assist in the setting up of business ventures.

For more information and latest updates please visit Embassy of India to Belgium, Luxembourg and European Union website: http://www.indembassy.be./

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July 2014