Digital innovations and start-ups receive significant impetus at the India-Luxembourg Virtual Summit

PM Modi emphasised that the belief in democracy is the strength of the partnership between India and Luxembourg as the two sides signed three pacts at their first bilateral summit to push their business and investment partnership.

November 19, 2020

Prime Ministers of India and Luxembourg attended the first stand-alone virtual meet to strengthen bilateral cooperation between the two nations.

Three agreements were signed during this summit targeting financial technology, digital innovations, start-ups, and space applications.

The two nations are eager to explore the amalgamation of the Digital India and Digital Luxembourg initiatives.

The bilateral trade 2018-19 was US$ 161.98 million and FDI flows from Luxembourg to India from 2000-2019 was about US$ 2.84 billion.

The Prime Minister of India, H.E. Shri Narendra Modi and the PM of the Grand Duchy of Luxembourg, H.E. Mr Xavier Bettel, attended the first-ever India-Luxembourg Virtual Summit on 19th November 2020, wherein they exchanged views on strengthening India-Luxembourg relationship especially in this post-COVID world, targeting the areas of financial technology, green financing, space applications, digital innovations and start-ups. The summit saw the signing of 3 agreements which included an MoU between Indian International Exchange (India INX) and Luxembourg Stock Exchange, MoU between State Bank of India and Luxembourg Stock Exchange, and MoU between Invest India and Luxinnovation.

In the wake of pandemic COVID-19,  both nations are strengthening in the areas of financial technology, green financing, space applications, digital innovations and start-ups and increase cooperation to combat the challenges posed by the pandemic, terrorism and climate change. The two countries are also promoting digitalisation through “Digital India” programme and “Digital Luxembourg” and are eager to explore the convergence between the two. Apart from this the countries are also collaborating in the field of neurodegenerative diseases, higher education, and research. To facilitate and expand cultural and people-to-people ties the two countries intend to conclude a Migration and Mobility agreement. In July the virtual summer between India and the European Union (EU) was held to intensify the India-EU relationship through strengthening cooperation in areas of common interest in the Indo-Pacific region, and through comprehensive, sustainable and rules-base connectivity. 

The diplomatic relations between India and Luxembourg were established around 1947. Since then India and Luxembourg enjoy close, warm, and friendly relations, rooted in shared commitment to the Rule of the Law, democratic values, and development. India and Luxembourg have enjoyed a longstanding cooperation in the steel sector. Luxembourg Company ‘Paul Wurth Company’ has been in India for the last two decades and plays an important role in upgrading the steel sector in India in collaboration with SAIL, TISCO, Jindal Steel etc. Trade and investment comprise important elements of India-Luxembourg relations. The bilateral trade between India-Luxembourg in the year 2018-19 was US$ 161.98 million (€147.18 million). India’s exports to Luxembourg mainly consisted of engineering products, textiles and garments and chemicals while India mainly imported engineering goods, base metals, chemicals, etc. The major items of India’s imports from Luxembourg are engineering goods, base metals, Plastics and articles. Foreign Direct Investment flows from Luxembourg to India between April 2000 and June 2019 were about US$ 2.84 billion (€2.58 billion), making it the 16th largest investor in India. This first independent Summit between India and Luxembourg in the past two decades is a significant milestone wherein both countries ensure their commitment towards deepening the bilateral relations and cooperation in regional and multilateral fora on matters of mutual and global interest.