Most Indian citizens might have heard of Schengen and the visas given in its name by consular offices from the European Union embassies. But few people know that Schengen is a place in Luxembourg. The agreement setting up the Schengen visa system was signed in 1985 in this picturesque border locality, a wine growing village which sits on the river Moselle linking Luxembourg, France and Germany.

Fewer people still might have been told of the political importance of the Grand Duchy, which is a founder member of the European Union. Until 1965 it hosted the headquarters of what was then called the European Steel and Coal Community, founded in 1951.

Luxembourg has lost the offices of the ESCC, but it has since developed into the legal capital of the EU: the European Court of Justice is located in Luxembourg, plus the EU Court of Auditors. Also the EU Statistical office, the European Investment Bank, parts of the European Parliament and EU Commission have settled in Luxembourg.

After World War II the country’s private business thrived. The world’s number one steel producer, Arcelor and the biggest international private satellite operator, SES Global are both headquartered in the Grand Duchy. Several multinational companies from all over the world (Good Year, TDK, Dupont, Guardian…) have chosen Luxembourg as their European production site.

During the seventies Luxembourg added a new business sector: banking and insurance, which has now become the single biggest private employer. The mutual funds industry in Luxembourg has reached the number 2 slot in Europe, and boasts of a market value of USD 950 billion.

Economists know about Luxembourg’s affluence, which is due to a remarkable political and social stability, a very convenient location on the division line between French- and German speaking Europe and last but not least the foresight and pragmatism of its political and social leadership.

It might be only 2500 square kilometers big, but the Grand Duchy was given the significant title of “the green heart of Europe” by its neighbors. Tourists flock to this melting pot of French savoir de vivre and Germanic efficiency, known for its medieval castles, rolling hills and romantic river valleys.

From a diplomatic viewpoint, the opening of an Embassy in India in February 2002 marks the increasingly global ambitions of the Grand Duchy. The Delhi mission is only the fourth Embassy in Asia, following openings in Beijing, Tokyo and Kuala Lumpur. Altogether Luxembourg has 22 diplomatic representations abroad, mostly in Europe.

Looking at the business angle, the aim of the new Embassy is to expand trade between both countries and to attract investments to both jurisdictions. As a prerequisite to boosting trade and investment figures the Luxembourg Government is working towards achieving an agreement on a double tax avoidance treaty with India.