Table of Contents
What happened?
- India and Luxembourg on Thursday held their first bilateral summit in two decades and signed three agreements,
- To push their business and investment partnership.
The 3 Agreements
- MoU between India International Exchange (India INX) and Luxembourg Stock Exchange.
- Provides for cooperation in financial services industry, maintenance of orderly markets in securities respective country, ESG (environmental, social and governance) and green finance in the local market.
- MoU between State Bank of India and
Luxembourg Stock Exchange.
- Provides for cooperation in financial services, industry maintenance of orderly markets in securities respective country, ESG (environmental, social and governance) and green finance in the local market.
- MoU between Invest India and Luxinnovation.
- This will support and develop mutual business cooperation between Indian and Luxembourg companies, including promotion and facilitation of inbound FDI, coming from or proposed by Indian and Luxembourgish investors.
International Solar Alliance (ISA)
- Luxembourg announced to join the International Solar Alliance (ISA).
- India also invited it to join the Coalition for Disaster Resilient Infrastructure (CDRI)
- The two Prime Ministers at the Summit exchanged views on strengthening India-Luxembourg relationship in the post-COVID world,
- Especially in the areas of financial technology, green financing, space applications, digital innovations and start-ups.
To increase partnership
- The Prime Minister suggested that India and Luxembourg have immense potential to increase trade partnerships.
- “We have a good partnership in the field of steel, financial technology, digital domain but there is a chance of taking it further.
- I am happy that our space agency recently launched Luxembourg`s four satellites.”
- Luxembourg is the 5th largest investor from the EU after the Netherlands, Germany, France, Cyprus.
- It is the 15th largest foreign investor in India.
- It is the third largest source of Foreign Portfolio Investments (FPI) investments in India after US and Mauritius.
Steel sector
- India and Luxembourg have a longstanding cooperation in the Steel sector.
- Luxembourgish company Paul Wurth has been in India for the last two decades and playing an important role in upgrading the steel sector in India in collaboration with SAIL, TISCO, and Jindal Steel among others.
- ArcelorMittal, the world’s largest steel-producing company, is based out of Luxembourg.
- Environment
- Luxembourg companies were taking a growing interest in India’s various initiatives related to
- The environment, clean energy and sustainable technologies, including the Clean Ganga Mission.
How Luxemburg could be helpful to India?
- Luxembourg, as a leading international financial centre in Europe, can act as an important bridge,
- To help connect India’s financial services industry with international markets and reach European and global investors.
- Luxembourg’s importance stems from it being one of the founding members of the
- European Union (EU),
- As well as one of the three official headquarters to the EU’s institutions along with Brussels and Strasbourg.
conclusion
- The two leaders expressed their determination to promote effective and reformed multilateralism and
- A rules-based multilateral order with the United Nations (UN) and the World Trade Organisation (WTO) at its core.
- The term Inner Six is referred to the six founding member states of the European Communities. European Community Market (EEC) was founded on the basis of the Rome treaty in 1957.
Q) Which among the following is not the Inner Six country?
- Belgium
- France
- Italy
- Poland
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