INDIA and Luxembourg enjoy a cordial and amicable relationship built on a foundation of mutual understanding and collaboration across various fronts. Diplomatic ties between the two nations were established in 1948 and this year marks their 75th anniversary. Luxembourg set up its Embassy in New Delhi in February 2002.
Spate of MOUs
In November 2020, a virtual bilateral summit had brought together the Prime Ministers of the two nations.
Issues related to a broad spectrum of bilateral relations were discussed then. The summit had yielded several noteworthy agreements, including Memoranda of Understanding (MOUs) between India International Exchange and Luxembourg Stock Exchange, State Bank of India and Luxembourg Stock Exchange, Invest India and Luxinnovation. In addition, Luxembourg’s accession to the International Solar Alliance in February 2021 and the signing of an MoU between SEBI and Luxembourg Regulator CSSF in June 2021 have further solidified collaboration.
Multilateral support
Luxembourg has been a staunch supporter of India at multilateral forums, recognising its contributions to the United Nations (UN).
Luxembourg joined as a co-sponsor of the G-4 resolution in the UN General Assembly in 2005, backing India’s aspiration for a permanent seat in the UN Security Council. The two countries have reciprocally supported each other’s candidatures for non-permanent membership in the UN Human Rights Council (UNHRC).
Luxembourg stood firmly against embargoes on India following its nuclear tests in 1998 and advocated for India’s inclusion in critical global bodies such as the Nuclear Suppliers Group (NSG) and the Missile Technology Control Regime (MTCR).
Economic ties
Trade and investment form the bedrock of India-Luxembourg relations, with several crucial agreements serving as the framework for enhanced economic cooperation. The Double Taxation Avoidance Treaty, Social Security Agreement, and Civil Aviation Agreement have paved the way for increased trade and investment flows.
Notably, bilateral trade reached US$ 81.94 million in 2021-22, and Luxembourg’s foreign direct investment inflows to India have amounted to US$ 4.3 billion since April 2000. The India-BelgiumLuxembourg-Economic Union Joint Commission serves as an essential platform for fostering economic and commercial dialogues. Indian companies find opportunities to raise capital through the Luxembourg Stock Exchange, while Luxembourgbased investment funds hold significant shares in portfolio investments in India.
Diverse collaboration
Space cooperation has also emerged as a notable area of collaboration, with Luxembourg-headquartered Kleos Space SA successfully deploying nanosatellites in partnership with an Indian mission. Cultural ties between the two nations are further cemented through art, with Luxembourg proudly hosting a statue of Mahatma Gandhi sculpted by Amar Nath Sehgal, an Indian artist who has deep connections with both countries.
Vibrant Indian community
The Indian community in Luxembourg has witnessed a remarkable growth, experiencing an increase of over 20 per cent since 2018, with a total of 3,354 individuals as of 2021. Many community members are employed in the IT and service sectors, making significant contributions to the local economy.
Around 550 individuals hold Person of Indian Origin (PIO) or Overseas Citizenship of India (OCI) cards, further strengthening their ties with India. Organisations such as the Indian Association Luxembourg (IAL) and Indian Business Chamber of Luxembourg (IBCL) actively promote cultural interactions and facilitate business activities, fostering a sense of unity and camaraderie between the two nations
