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Luxembourg trade in India

The aim of the Embassy and of the Trade Office is to expand trade between both countries and to attract investments to both jurisdictions.

The Grand-Duchy makes great efforts to extend its presence on outside markets. The modest dimensions of the Luxembourg economy explain its historic openness to larger markets. With a population of only 550,000, foreign trade and investment is the main vector for economic growth. More than 80% of the goods produced in the Grand-Duchy are exported.

Jeannot-Krecke-en-mission-economique-en-Inde_medium

Minister of Economics Jeannot Krecké with his Indian homologue Kamal Nath in New Delhi, April 2007

 

In this context, South Asia is of major interest to our companies who are eager to find new business partners. Bilateral trade between Luxembourg and India has tripled between 2002 to 2007, reaching a peak of 52 million euros. This figure is still relatively low as compared to other Asian countries, but is expected to continue rising considerably in the future.

 

Major Luxembourg exports to India (2010) :

  1. Machinery and Appliances
  2. Base Metals and Articles of Base metal
  3. Plastic and Rubber Materials
  4. Articles of Stone, Cement and Glass
  5. Textiles and Textile Material
  6. Paper and its Application

Major Indian exports to Luxembourg (2010):

  1. Textiles and Textile Material
  2. Base Metals and Articles of Base metal
  3. Machinery and Appliances
  4. Chemical Products
  5. Articles of Stone, Cement and Glass
  6. Plastic and Rubber Materials

Looking at the above mentioned trade figures and the increasing but still rather limited presence of Luxembourg companies (compared to other Asian countries), the focus of the Embassy and the Trade Office is on increasing bilateral trade energetically. New horizons in our economic relations will be opened soon with the entry into force of the agreement to avoid double taxation, which will boost the bilateral trade and stimulate the flow of capital, technology, and personnel from India to Luxembourg and vice-versa.

While the Luxembourg steel and engineering sectors have already successfully found their way in the Indian market, other sectors are also very promising.

Special emphasis will be on the automotive sector. Due to the proximity of 22 major automobile manufacturing units within a radius of 300 km, Luxembourg has become a regional center of sorts for automobile components. More than a dozen companies are now present in this field (temperature gauges, plastic tanks for wipers, frames for batteries, separators for batteries, truck tyres, windscreens, passenger seat sensors, valves, car refrigerators, fuel tank ventilation, isolation material, springs for shock absorbers, research and aerodynamics testing, homologation, special vehicles, hydraulics etc) With India developing fast its own components sector, synergies might be explored further.

As the Indian economy liberalizes, the Embassy and Trade Office will also look at new business sectors in the services industry (banking and insurance, film industry).

Products from the Luxembourg Food and Beverage sector (chocolate, wine, beer) also have a great potential in India. As the local Indian consumption of wine is steadily increasing, international award-winning Luxembourg white wines and crémants ( http://www.vins-cremants.lu/en/home/index.html  ) are expected to become a successful export to India.

Indian Business Chamber of Luxembourg (IBCL)

On march 30th 2009, IBCL has been launched in the presence of the Luxembourg Foreign Minister Jean Asselborn and a large number of dignitaries and representatives. The main objective of the association is to promote the development of trade, economic, financial, educational, legal, scientific and cultural relations between and Luxembourg. Through its networks both in Luxembourg and India, IBCL can help its members in market analysis, setting up their business in Luxembourg or India, registration with respective authorities, obtaining legal and tax advice, searching business contacts, immigration assistance, relocation services and search for office, industrial or home space, recruitment of staff in relation to a new or existing business, access and exposure to business networks or forums. More information on IBCL can be found here: www.ibcl.lu