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The Heart of Europe ✪ Per Capita $113,044 (1St)

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The Heart of Europe ✪ Per Capita $113,044 (1St) THE FINANCIAL EXPRESS (ALL EDITIONS) JUNE 23, 2009 AN EXPRESS INTERNATIONAL REPORT AT A GLANCE Area 2,586 sq km Population 500,000 (40 % are foreigners) Broadening ties with India Languages Luxembourgish, German, French, English Currency Euro Political System Constitutional Monarchy Parliamentary Democracy Head of State HRH Grand Duke Henri GDP (PPP) 2008 estimate ✪ Total $40.025 billion (97th) ✪ Per capita $82,306 (2nd) GDP (nominal) 2008 estimate ✪ Total $54.973 billion (65th) The Heart of Europe ✪ Per capita $113,044 (1st) Pursuing a pro-active economic development policy, Luxembourg is taking concrete Main industries Banking and financial serv- steps to expand beyond European borders. Hitherto unknown in India, it is ices, iron and steel, infor- gradually increasing its presence and aims to attract sizeable Indian investment mation technology, telecommunications, cargo transportation, food pro- s you scan the map of Europe, Knebeler, elaborating on the concept of tions and agencies of the European cessing, chemicals, metal you will come across a tiny dot commuter population. Knebeler, "Daily Union. Post World War II era has wit- products, engineering, nestled between Belgium, thousands of workers from neighboring nessed the nation making a rapid tires, glass, aluminum, France and Germany. Hardly Germany, France and Belgium come to progress in the economic sphere. The tourism noticeable, that tiny dot is Lux- work in Luxembourg and leave in the economy is largely dependent on the Aembourg - one of the most prosperous Eu- evening for their respective nations. Cur- banking, steel, and industrial sectors. ropean countries. rently, it is estimated that nearly Main export partners Luxembourg's economic prosperity 160,000 cross border workers commute Access to decision makers Germany 21%, France hinges on its geography. Positioned at an between Luxembourg and its neigh- Underlining the importance of Luxem- 16.3%, Belgium 9.2%, enviable location where it has several of bors". Due to this, Luxembourg's job bourg as a hub for business, Knebeler United Kingdom 8.3%, the most industrialized and prosperous na- market is exceptional in Europe. The sit- makes a vital point. "While every coun- Italy 7.5%, Spain 6.6%, tions of Europe as its neighbors, Luxem- uation began to change in the 90s when try in Europe can offer more or less the Netherlands 4.3% bourg has seen a significant flow of invest- the international commuters really same red carpet to the business and in- ment from these countries. Informs started to come in large numbers. This vestor community in terms of incentives, Jean-Claude Knebeler, Director of For- economic immigration was welcome amenities et al, one thing that sets Lux- Main import partners eign Trade, "Located between the two considering the lack of local workforce. embourg apart is the accessibility to de- Belgium 28.2%, Germany largest markets of Europe - France and A high wage level, a low unemployment cision makers. Whether you are a small 21.8%, the People's Repub- Germany, Luxembourg makes for an ideal rate, moderate tax rates and multicultur- or a mid sized or a large corporation, you lic of China 12.8%, France destination to conduct business. We have alism: all these factors lie behind the won't have to wait endlessly to get an au- 9.6%, Netherlands 5.1% an efficient air, road and rail network that decision of the international commuters dience with the relevant Minister to dis- connects to all the leading ports, cargo to come and work on the other side of cuss your case, which is the case with hubs and airports in Europe. We are indeed the border, points out Knebeler. other nations". a small nation but we are so strategically Notwithstanding its small size Luxem- Perhaps it is because of this speed and placed that within a one -hour flight you bourg has played a key role in the forma- efficiency that runs in its system which has can cover all the markets which constitute tion of numerous organizations that have enabled it to stave off the crisis. At a time 80% of Europe's GDP- in essence are any changed the face of Europe post World when the reputation of countries all over Indian company's target in the EU." War II. Luxembourg is a founding mem- the world had taken a beating due to the Size does matter. With a population ber of the European Union, NATO, OECD, economic slowdown, Luxembourg was of under half a million inhabitants of the United Nations, Benelux, and the one of the few nations less affected. Says which nearly 42% are foreigners, Lux- Western European Union, reflecting the Knebeler, "Our ability to stay afloat de- embourg holds the distinction of the sec- political consensus in favour of economic, spite the crisis can be partly attributed to ond highest GDP per capita in the world political, and military integration. The our small size, as the government could - a statistic flawed due to the presence of city of Luxembourg, the capital and react swiftly to the crisis, using ressources a large commuter workforce. Says largest city, is the seat of several institu- stockpiled during better times." MESSAGE IBCL to ances, air cargo, information tunities in Luxembourg. technology and consulting. The financial sector in gen- On the other hand, I am very eral is one of the most promis- further ties pleased that an ever growing ing fields. Being listed on the number of Indian companies Luxembourg stock exchange IBCL’s launch has paved the way discover Luxembourg as an through global depository re- ideal location to establish a per- ceipts has become the preferred for furthering relationship manent base. Located in the solution for Indian companies between the two countries. heart of Europe, Luxembourg is who want to have access to the a gateway to the European mar- huge euro-zone capital mar- elations between India and Luxem- ket with more than 500 million kets. On the other hand, Luxem- bourg have stepped into a new direc- consumers. Due to its political bourg is home to the second Rtion. The recent launch of the In- H.E. Marc Courte, and social stability, skilled and largest investment fund indus- dian Business Chamber of Luxembourg is Ambassador of multilingual workforce, state- try in the world. It holds a very testimony to the fact that the two countries Luxembourg to India of-the-art infrastructures, excel- significant market share in port- are taking bilateral relations very seriously. lent connectivity to markets, fa- folio investments in India. For This includes a much closer business rela- take great pleasure in ad- vorable legal environment and Indian banks, a presence in Lux- tion and opening up of opportunities where dressing you in this special attractive tax climate, Luxem- embourg can give easy access corporates can look at setting up bases in Iissue dedicated to Luxem- bourg offers an exceptional to the whole European single each other's country. bourg. range of assets and opportuni- market, allows to tap the mu- In the ongoing economic scenario Small size, Over the last years, the Lux- ties for doing business. tual funds expertise and to gain where recession has played spoilsport and outstanding effects. embourg government has Let me highlight a few exam- from the proximity to the head- thereby halted many a countries eco- taken several steps to further ples of the complementary quarters of the European In- nomic prosperity, Luxembourg and India broaden its relationship with In- character of our economies: vestment Bank, one of the are two nations which have by and large dia, especially with the aim to India's automotive industry biggest infrastructure lenders remained unaffected by this turmoil. The promote trade and investment is thriving. Luxembourg on the in the world. reason lies in the size of the two countries between our two countries. other hand has a very active au- I am convinced that new - India due to its large size and population Luxembourg has become better tomotive components industry. horizons in our economic rela- has a high domestic consumption while known in India especially since Most cars produced in Europe tions will be opened soon : A Luxembourg though small but with a fan- Lakshmi Mittal established today have parts "Made in Lux- bilateral agreement to avoid tastic location and a huge commuter pop- headquarters of ArcelorMittal, embourg" inside them. As India double taxation has been ulation has been witnessing progress in all the world's leading steel com- starts exporting cars to Europe, adopted and will enter into spheres of industry. pany, in our capital. If he did so, there is ample space for highly force very shortly. The agree- "The two countries can make the best it is because Luxembourg has a interesting synergies between ment will boost the bilateral of the situation by forging closer ties and lot to offer, especially in terms of the respective industries. trade and stimulate the flow of launch of IBCL is the first step in this di- an attractive business and legal Many Indian companies capital, technology, and per- rection", stated Sudhir Kumar Kohli, framework. I am glad to see that need a solid logistical base to sonnel from India to Luxem- President, Indian Business Chamber of our bilateral trade has tripled distribute their products in Eu- bourg and vice-versa. Luxembourg. between 2002 to 2007, reach- rope. To those of you who have I would like to conclude by For India, Luxembourg is one destina- ing a peak of 52 million euros. a European customer base: encouraging you to visit Luxem- tion which will suit the needs of Indian Yet there is most certainly room have you thought about the nu- bourg and see for yourself the businessmen as it is regarded a hub of lo- Fall in love.
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