Luxembourg Deputy Prime Minister and Foreign Minister Xavier Bettel is on a three-day official visit to India, with External Affairs Minister S. Jaishankar holding bilateral talks in New Delhi. The visit highlights the growing India-Luxembourg partnership, spanning trade, investment and financial cooperation, as well as space, digital technologies, green technologies and health. Bettel will also visit IIT Madras and inaugurate a new SES campus in Chennai, demonstrating practical cooperation beyond diplomatic discussions.
Luxembourg is positioning itself as a strategic gateway for Indian companies to access European markets, according to Lex Delles, Luxembourg's Minister of the Economy. Speaking to Business Standard, Delles emphasized that the country wants Indian companies to use Luxembourg as a gateway to Europe while also facilitating Luxembourg companies' expansion into India. The partnership approach focuses on building complementary relationships where companies from both nations can work together to enhance their market reach.
The collaboration framework identifies space, green steel, and financial services as primary areas for cooperation between Luxembourg and India. Luxembourg brings expertise in satellite communications through companies like SES, while India's growing private space ecosystem focuses on satellite manufacturing and launch capabilities. In steel, Luxembourg's strong industry, including companies like ArcelorMittal, is developing green steel and R&D activities in India. The financial services sector also presents significant opportunities for bilateral cooperation.
Luxembourg has set an ambitious target to increase green energy production to 37% by 2030, currently producing around 25% of its own energy. The country maintains an integrated electricity market with Germany and is developing green steel technologies that could benefit from Indian capabilities. Delles noted that while Luxembourg lacks natural resources like the North Sea for renewable energy, the country is focusing on developing clean energy solutions within its specific limitations.
The India-EU Free Trade Agreement provides a crucial framework for enhanced India-Luxembourg cooperation, as reported by Business Standard. Luxembourg's position as a small, open economy with political stability and predictable economic policies makes it particularly attractive for companies seeking access to European markets. EAM Jaishankar thanked Luxembourg for its strong support for the India-EU Free Trade Agreement, saying it could open new horizons for supply chain resilience and diversification. The country's international business environment, with 5,000 Indians living in Luxembourg and multilingual capabilities, facilitates easy access to European ecosystems and clear business rules under the FTA.
