India’s large and highly skilled youth population offers a significant asset for Luxembourg’s businesses and industries says Himanshu Upadhyay Chairman of Indian Chamber of Commerce of Luxembourg. Interview
Can you present your association in a few words?
The Indian Business Chamber of Luxembourg (IBCL) is a bilateral chamber committed to fostering and enhancing business relations between India and Luxembourg. It serves as a platform for businesses and professionals from both nations to network, exchange ideas, and explore collaborative opportunities. The IBCL organises various events, seminars, and networking sessions designed to promote economic ties, and mutual understanding between the Indian and Luxembourgish business communities. Through its initiatives, the IBCL plays a pivotal role in bolstering bilateral trade and investment.
For instance, in the past fortnight, we have established key connections for two Luxembourg organisations with industry leaders in India, resulting in several face-to-face meetings. Facilitating such dialogues is considered our greatest asset.
Which indian companies are active here and which Luxembourg ones are active in India?
Indian companies active in Luxembourg include Tata Consultancy Services, Wipro, Infosys, Tech Mahindra, Syncordis, Damco Solutions, and Quantum Business Advisory. Luxembourgish companies active in India encompass Paul Wurth, ArcelorMittal, Ceratizit, B Medical Systems, Amer-Sil Ketex, IEE, Traxys, Tractel Secalt, SES, Rotarex, Hitec, Bernard Massard, Bejimac, Boson Energy, and Solar Cleano.
These companies engage in various sectors like IT, manufacturing, automotive, space, and renewable energy, demonstrating strong bilateral trade and investment relations between the two countries.
“Facilitating such dialogues is considered our greatest asset.”
India is the most populated country. How could Luxembourg strenghthen its relations?
To strengthen its relations with India, Luxembourg can leverage several key factors. India’s large and highly skilled youth population offers a significant asset for Luxembourg’s businesses and industries. Over the past decade, India’s robust growth in infrastructure, housing, skill development, manufacturing, semiconductors, and ICT presents vast opportunities for collaboration. Government reforms have significantly improved the ease of doing business, attracting a surge in FDI, particularly in green energy and start-ups, which has led to the creation of numerous unicorns. This growing consumer market opens doors for Luxembourg’s strong brands. Furthermore, besides the usual opportunities in space and IT, there are numerous unexplored sectors where Luxembourg can invest in India. The International Monetary Fund raised India’s growth forecast for 2024-25 to 7% from 6.8% on the back of improving private consumption, particularly in rural India. The thriving Indian democracy and its economy, poised to become the world’s third-largest, mirrors China’s growth trajectory from the last century but within a more democratic setup.
India’s ongoing liberalization of FDI regulations, especially in strategic sectors like space, and divestment from public sector companies, including recent stakes in Hindustan Aeronautics and Indian Railway Catering and Tourism Corporation, offer further investment avenues. As the EU-India Free Trade Agreement progresses, Luxembourg stands to benefit immensely, providing Indian companies with a strategic entry point into the European market. Therefore, it is imperative for Luxembourg to act swiftly to capitalize on these opportunities and forge stronger economic ties with India.
To further solidify its economic partnership with India, Luxembourg should also focus on the Indian manufacturing sector. India has become a global manufacturing hub due to its extensive reforms, competitive costs, and government initiatives like “Make in India” and the Production Linked Incentive (PLI) scheme. These initiatives have spurred significant growth in sectors such as electronics, automotive, pharmaceuticals, and renewable energy. Luxembourg’s expertise in advanced manufacturing technologies and its strong industrial base can synergize with India’s manufacturing expansion, tapping into a market projected to reach USD 1 trillion by 2025. Collaborating in manufacturing not only diversifies Luxembourg’s economic engagements but also positions it to benefit from India’s ambitious infrastructure and industrial development goals.
