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Luxembourg asks India to open up insurance, eyes financial services

Describing India as a major global player with a significant role to play in the 21st century, Luxembourg Prime Minister Jean-Claude Juncker today asked India to relax its policy of protectionism in insurance and other key sectors to attract foreign investments.

''Protectionism is in no case a good argument for attracting investments,'' he said in New Delhi today at a media meet.

Regretting that trade relations between India and the European Union had not registered a significant progress, Juncker called for the formation of a ''full-fledged strategy'' by the EU to give a boost to its relations with India not only in the economic and commercial fields but also in the political area. ''The European strategy for India could be on the lines of the ones we have for China and Russia.''

He said Luxembourg had decided to open its embassy and trade mission in New Delhi in 2000. He had been informed by Prime Minister Atal Bihari Vajpayee during their meeting yesterday that India would also reciprocate the gesture and open its mission in Luxembourg in the same year. Currently, the Indian ambassador to Brussels is also accredited to Luxembourg.

Juncker was, in fact, of the view that India and the EU should have a mechanism for a ''permanent dialogue''.

On whether Luxembourg proposed to enter the insurance sector in India ,he said: ''We have to enter into talks with India in the coming months concerning financial services. There is room to put in place better services.''

Juncker said he had explained to Indian leaders during bilateral meetings the significance of introducing a single currency in Europe. The introduction of euro currency earlier this month by 11 European countries would deepen their relations and also enable them to formulate a common security policy.

India, he said, was lacking ''visibility'' in many European countries and the introduction of single currency was a good opportunity for them to have a closer look at India.

He made it clear that Luxembourg was opposed to anti-dumping measures.

On the signing of a memorandum of understanding between India and Luxembourg on air services, Juncker said it would soon be transformed into an agreement. The two countries had also agreed to conclude a double taxation agreement to promote economic relations.

UNI

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