India-Luxembourg Summit to give push to foreign portfolio investments

NEW DELHI: India-Luxembourg Summit on Thursday, the first in last two decades, will be an opportunity to lay the platform for cooperation between Delhi and the European nation (15th largest foreign investor in India) in a post-COVID world.

Luxembourg is the third largest source of Foreign Portfolio Investments (FPI) investments in India after US and Mauritius accounting for approximately 8.5% of these investments.

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.

The Prime Minister has met with Prime Minister Bettel three times in the past – on the margins of the Paris COP21 meeting (December 2015); Shanghai Cooperation Organization Summit Kazakhstan (June 2017) and on the sidelines of UNGA in September 2019. Bettel has also extended invitations to Prime Minister to visit Luxembourg.

Economic relationship between India and Luxembourg highlights Luxembourg’s strength as an important global financial centre.

Luxembourg is the 5th largest investor from the EU after the Netherlands, Germany, France, Cyprus and the 15th largest investor in India; since July 2014, Luxembourg’s cumulative investment in India has more than doubled – from USD 1.088 billion to USD 3.082 billion (March 2020).

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.

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ArcelorMittal, the world’s largest steel-producing company, is based out of Luxembourg and recently entered into a joint-venture (JV) in India partnering with Nippon Steel (Japan’s biggest steel-producer) as AM/NS India.

The JV also acquired the Essar Steel India Limited in 2019. In June 2020, AM/NS India announced plans to invest Rs.5000 crores to ramp up capacity at its Hazira plant, with plans to spend another Rs.20,000 crores on future capacity expansion. It has also announced plans to invest Rs.2000 crores to expand capacities of its existing plants in Odisha.

Luxembourg Stock Exchange was the first stock exchange globally to list Masala Bonds in 2008.

Luxembourg and India have vibrant cooperation in space sector. Recently, Kleos Space S.A., a Luxembourg-based space-powered Radio Frequency Reconnaissance (RF) data-as-a-service (DaaS) company, has provided an update on the Kleos Scouting Mission launching on the Indian Space Research Organisation’s (ISRO) PSLV-C49 Mission from Satish Dhawan Space Centre (SDSC) in the Sriharikota Range in India (SHAR).

NewSpace India Limited (NSIL) announced (via Spaceflight Inc.) that the launch of the four Kleos satellites planned on-board PSLV-C49 mission is being targeted during the first half of November 2020, based on the current status of activity planning.

Kleos Space is launching the Scouting satellites under a rideshare contract with Spaceflight Inc, with the launch managed by NSIL, an Indian company. The Kleos’ Scouting Mission four satellites have been mission-ready since the middle of 2019 and were shipped to the launch site in February 2020, anticipating the launch in March 2020.



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