MUMBAI, INDIA - Once a tax haven, Luxembourg, now the second debt-free nation in the world, called on Indian businesses to invest in their country. The Ambassador of Grand Duchy of Luxembourg in India, HE Sam Schreiner in his address to investors in Mumbai highlighted that his country is not a tax haven as is perceived. “Luxembourg has lowest tax rate at 21% and highest incomes as compared to Germany, France and Belgium,” said Schreiner. He summed up his country’s motto as “Stable country, stable outlook.”

Meanwhile, Schreiner spoke regarding the investigations on the black money case wherein many Indian business houses and people figure in the HSBC list. He assured that the investigations are being conducted in full cooperation between the two countries and this cooperation Schreiner said can also seen between the tax authorities. The trade minister on his recent visit to India had assured full cooperation in these investigations. The government in Luxembourg is taking measures to ensure the investigations run smoothly. Schreiner stressed, “Luxembourg does not encourage money laundering.”

He was addressing the business community in Mumbai, organized by World Trade Centre Mumbai. A country 2000 times smaller than India is the debt-free country in European Union, second only to Singapore in the world.

150 years ago Luxembourg was a very poor country, however the discovery of iron ore in 1850 changed the fortune of this country. Since then Luxembourg made progress due to many reasons, which also includes the contribution from migrants who comprise 40% of the work force. The country’s progress also is due to the fact that there is no social unrest and violence. Their policies and laws have contributed to making it a leading international financial center, as it is easy to set up businesses.

Luxembourg has focused on strong sectors, which are media, industry, logistics, EU institutions, Steel, agriculture, finance and bank services. Luxembourg is best in investment funds in Europe and second in the world to USA in assets management, which is running into 3.4 trillion. Interestingly, Luxembourg has the highest productivity at 165, which is more efficient than the EU average of 100.

Vijay Kalantri, the Vice Chairman of WTC Mumbai and President of AIAI, invited investments from Luxembourg as it has only 5% trade with India. Kalantri highlighted the cooperation required in various sectors like knowledge-based industries, IT, infrastructure, steel and green technologies.  He emphasized that in 2013 India and Luxembourg signed an agreement for steel. Over 90 Indian companies are listed for GDR in Luxembourg. The market is conducive because 50% of the work force comes from nearby European markets and there is good infrastructure. Many Indian companies go in for GDR issues because of the volume and high volume is assured.

The Executive Director of WTC Mumbai, Y. R. Warerkar proposed the vote of thanks.

The other guests attended, Laure Huberty, Deputy head of Mission Luxembourg in India and Ashok Kadakia, honourary consul general Luxembourg in Mumbai.

PHOTO : (centre) H.E. Mr. Sam Schreiner, Ambassador The Grand Duchy of Luxembourg in India while addressing the business community in Mumbai, at World Trade Centre Mumbai. Others at the session seen, (L-R) Mr. Vijay Kalantri, Vice Chairman, World Trade Centre Mumbai and President, All India Association of Industries, the guest of honour, Ashok Kadakia, Honorary Consul General Luxembourg in Mumbai and Y. R. Warerkar, the Executive Director World Trade Centre Mumbai.