The 16th Session of the Joint Economic Commission (JEC) between India and the Belgium Luxembourg Economic Union (BLEU) took place in New Delhi recently. The annual meeting serves as a critical juncture for reaffirming the importance of JEC in the progression of economic and trade relations between the involved nations. Since 1997, the India-BLEU JEC has facilitated constructive dialogue and enhanced cooperation on an array of mutual interest issues. This meeting is typically held in the capital cities of the three countries on an alternating basis.
Insights on the Belgium Luxembourg Economic Union (BLEU)
The BLEU was formed through a treaty that was signed in 1921. This treaty led to the elimination of the economic frontier and established a monetary union by setting the Belgian franc and Luxembourg franc at fixed parity. The monetary union existed until the arrival of the euro.
In 2002, a fresh convention was signed between Belgium and Luxembourg. Even though the objectives of the BLEU have been largely absorbed by the Benelux Union – which included Luxembourg, Belgium and the Netherlands – and the European Union, it remains highly relevant in deciding precise measures than these other organizations. According to economic rankings, the Belgium–Luxembourg Economic Union is the world’s 13th largest export economy.
India-Belgium Economic Relations
India holds the position of being Belgium’s second-largest export destination and fourth-largest trading partner outside the jurisdiction of the European Union. The Indian diaspora contributes significantly to this relationship. Major exports from Belgium to India are mainly concentrated in three sectors – gem and jewellery with a focus on rough diamonds, chemical products, and machinery and mechanical products. In contrast, exports from India to Belgium majorly consist of finished gem and jewellery products, base metals and articles, alongside chemical products.
| Belgium’s Main Exports to India | India’s Major Exports to Belgium |
|---|---|
| Gem and Jewellery (Rough Diamonds) | Gem and Jewellery (Finished Products) |
| Chemical and Chemical Products | Base Metals and Articles |
| Machinery and Mechanical Products | Chemicals and Chemical Products |
The Economic Relationship between India and Luxembourg
Luxembourg is India’s 16th most crucial investor. Among EU member states, it ranks an impressive 4th place as a combined FDR and FII investor in India. Investment from Luxembourg is predominantly observed in trading, computer software & hardware, service sector, agricultural machinery, and chemicals. The steel sector has been a long-standing area of cooperation between India and Luxembourg.
