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Luxembourg keen on DTAA with India
April, 24th 2007

India and Luxembourg are working to iron out different issues that would help them reach a Double Taxation Avoidance Agreement (DTAA).

"A Double Taxation Avoidance agreement is not in place between India and Luxembourg and hopefully during this visit, different elements of the pact will be sorted out with the Indian side," Luxembourg's Economy and Foreign Trade Minister Jeannot Krecke said at a seminar of the Federation of Indian Export Organisations here.

He said Luxembourg has a DTAA with about 70 nations and "we would want to have one with India as well".

Recognising the strength of the Indian economy, Krecke said Luxembourg was an open economy and would not resist any merger and acquisition bids by Indian firms.

Interestingly, Luxembourg had last year resisted India- born steel giant L N Mittal's move to takeover Arcelor, but changed its stance subsequently.

"Luxembourg is an open economy and now with the passing of the Takeover Bill, companies interested in acquiring Luxembourg-based firms would have a framework in place that would facilitate their takeover activities," Krecke said.

He said Mittal's takeover bid for steel major Arcelor did result in political tensions but the Luxembourg economy is open to mergers and acquisitions by global companies including from India.

The Minister said logistics companies from Luxembourg are keen to work with their Indian counterparts to offer supply chain services in the European markets.

 
 
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