Foreign Policy Watch: India – EU

Places in news: Luxembourg


From UPSC perspective, the following things are important :

Prelims level : Location of Luxembourg

Mains level : Not Much

Prime Minister has pitched for strengthening ties to further ramp up economic engagement between India and Luxembourg.

Mark the location of Luxembourg. Since it is a landlocked country, there can be a question asking its bordering states.


  • 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

Why Luxembourg?

  • 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.
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