Luxembourg

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Context

The Prime Minister, Shri Narendra Modi congratulated Luc Frieden for becoming Prime Minister of Luxembourg.

About

Luxembourg is a small European country, landlocked by Belgium, France and Germany.
It’s mostly rural, with dense Ardennes Forest and nature parks in the north, rocky gorges of the Mullerthal region in the east and the Moselle River valley in the southeast.
Its capital, Luxembourg City, is famed for its fortified medieval old town perched on sheer cliffs.
Luxembourg is one of the most important financial centres globally.
Several Indian companies have raised capital by issuing Global Depositary Receipts at the Luxembourg Stock Exchange.
Luxembourg-based investment funds hold substantial banking and asset management market share in portfolio investments in India.
It is also the third-largest source of Foreign Portfolio Investments (FPI) in India.

India- Luxembourg Relationship

Economic partnership:

Both nations have a long history of collaboration in the steel sector, and the leaders’ urged firms, notably SMEs and startups, to look into new ways to deepen the economic partnership.
Both countries look forward to the 17th Joint Economic Commission (JEC) between India and the Belgium-Luxembourg Economic Union, which will evaluate economic and trade cooperation.

Finance:

The proposed agreement between the regulatory authorities Commission de Surveillance du Secteur Financier (CSSF) and the Securities and Exchange Board of India (SEBI) will strengthen bilateral financial sector collaboration.
Luxembourg, a significant international financial center in Europe, can be a crucial link between India's financial services industry and worldwide markets, allowing it to reach European and global investors.

Cooperation in Space and Digital Technologies:

Both countries have ongoing space cooperation, including satellite broadcasting and telecommunication.
Luxembourg-based space businesses have begun to use India's services to launch satellites into space.
In November 2020, the Indian Space Research Organisation (ISRO) launched the PSLV-C49 mission, which contained four Luxembourg satellites.
The two governments are now discussing a cooperation instrument for peaceful exploration and utilization of outer space.
Following the pandemic, both India and Luxembourg are supporting digitalization through the "Digital India" plan and the "Digital Luxembourg" initiative, respectively, and have agreed to explore potential synergies.

Higher Education and Research:

The Indian National Brain Research Centre collaborates with the Luxembourg Institute of Health and the Luxembourg Centre for Systems Biomedicine on neurodegenerative illnesses.
Neurodegenerative diseases are a diverse set of conditions marked by the progressive degradation of the structure and function of the central or peripheral nervous systems.
Alzheimer's disease and Parkinson's disease are two examples.
IITs in Bombay, Kanpur, and Madras, as well as the National Law School of India, have established links with the University of Luxembourg, which will be enhanced for higher education and research in both nations.

Culture and Interpersonal Relationships Ties:

To commemorate Mahatma Gandhi's 150th birthday, Luxembourg had released a commemorative stamp in 2019.
Both countries want to sign a Migration and Mobility arrangement to increase mobility, as well as a visa waiver arrangement for holders of diplomatic and official/service passports.

Way Forward

The first stand-alone Summit between India and Luxembourg in two decades marks a new phase in bilateral relations, with both countries reaffirming their commitment to broadening and deepening the scope of bilateral relations, as well as improving consultation and coordination in regional and multilateral fora on issues of mutual and global interest.

PRACTICE QUESTION

Which European country is known for its small size, high standard of living, and is one of the founding members of the European Union?

Answer: B