(Above, L-R) Philipp von Restorff, LFF; Julie Becker, LuxSE; (below, clockwise, from bottom right) Anand Pattabiraman, esgwize; Avinash Satwalekar, Franklin Templeton Asset Management (India); Nilesh Shah, KMAMC; Alessandro Silvestro, Lemanik;

On Wednesday 19 October 2022, Luxembourg for Finance held a livestream event "Building bridges with India".

According to Luxembourg for Finance, cooperation between Luxembourg and India has only grown since official diplomatic relations were established in 1948; it argues that strong economic and financial services ties make Luxembourg an ideal gateway for Indian investors and financial firms looking to access the European market: the online seminar explored these ties.

In the short welcome speech, Philipp von Restorff, Deputy CEO at Luxembourg for Finance, touched on ensuring that the green economy transition leaves no one behind. He said that one important building block is cross-border collaboration that enables qualitive growth, protects social standards and more, with financial institutions essential to this growth. In this context, talent plays an important role.

Moderated by Philipp von Restorff, Julie Becker, CEO of the Luxembourg Stock Exchange (LuxSE), and Venkataramani Balasubramaniam, CEO of India INX, discussed raising capital for green projects in India via platforms such as the LuxSE, within the context of sustainable finance. He referenced a $300 million green bond placed recently on the Luxembourg Green Exchange.

Venkataramani Balasubramaniam referred to India's Prime Minister speaking at COP26 in Glasgow and promoting an eco-friendly lifestyle. He said that we need to mobilise investment, the significant part of which should come from international investors, and mentioned their platform and the partnership (that started last year with the signing of a memorandum of understanding) with the LuxSE. He added that much money needs to be raised to meet climate change goals.

Julie Becker talked about Europe becoming climate neutral, where transition can only succeed it if is undertaken in a fair manner. She referred to the Green Exchange created in 2016 created for impact-conscious investors, with more than 50 countries, 1,500 listings and over €800 billion involved. She referred to the geopolitical context and asked: Will the energy crisis put the climate goals at risk? She stated that she feels that it can be accelerated. Regarding social tensions, she referred to anti-green movements rising, arguing that social transition will be needed, with social investment needed. To conclude on the risk of green-washing, she said that this needs to be addressed, with a harmonised global approach needed on reporting, among other things.

Concerning the EU Green Bond standard, a proposed regulation for harmonisation, she mentioned that currently standards are voluntarily applied, and argued for the EU taxonomy on allocation and reporting that can be reviewed by third parties, and which will grow over time.

On building a sustainable future, Venkataramani Balasubramaniam explained that rapid industrialisation and other challenges India has faced are very different challenges from today's climate change; nevertheless, all solutions must be sustainable and should support a faster rate of growth. He also referenced water resources, green buildings and education, all playing an important role.

Julie Becker concluded by stating that investors are looking for sustainable finance products, stressing the resilience of the sustainable bond market. She added that investors are looking for credibility, therefore transparency is crucial for the LuxSE so that investors can measure the impact of their investment.

The second panel for the day, moderated by Anand Pattabiraman, Independent Director and Founding Partner of esgwize, delved into the role of Luxembourg investment funds and how they help channel investments into India.

Avinash Satwalekar, President, Franklin Templeton Asset Management (India), mentioned that India is one of the fastest-growing economies in the world and highlighted its demographics and policy reforms to attract more foreign direct investment.

Nilesh Shah, Group President & Managing Director, Kotak Mahindra Asset Management Company (KMAMC), echoed the previous speaker's reference to India being a large and fast-growing world economy. He referenced emerging markets and "green returns" with India one of the few countries expecting to meet COP26 goals. He stated that Luxembourg has been a strong economic partner with India and referenced green funds and green bonds. He said that Luxembourg plays a really important role in attracting investment into India, being the third largest investor, confirming that India is attractive to investors.

Alessandro Silvestro, Managing Director for Asia Pacific at Lemanik, said that India managers may be strong in India and Asia, but European funds (name-checking Luxembourg funds) are crucial to world growth as they attract other investors. He referred to environmental, social and governance (ESG) being a young industry and stressed that the alternative space is challenging.

The "fireside chat", moderated by Lynn Robbroeckx, Secretary General at Luxembourg for Finance, explored talent needs in Luxembourg and how Indian professionals can leverage them.

Lokdeep Singh, Global CEO of Talkwalker, stated that India has a deep talent pool in the finance and IT sectors. FinTech is the third largest market in India, with 10% of jobs in the financial sector, underlining a strong talent pool. Working for an EU or US company has always been attractive for Indians. He said that medicine and engineering career choices in the past have been replaced over the years by finance and IT as the Indian talent pool broadens its scope into other sectors. On leadership skills needed, and which India can offer, he mentioned a hard work mentality, as well as critical thinking and perseverance. Regarding Luxembourg, he felt that the US has great marketing skills, with increasing awareness and more outsourcing and networking needed.

Dr Pranjul Shah, Head of Incubator at the University of Luxembourg Incubator, talked about the growth in numbers of university students in Finance and Technology and referred to the Indian embassy's support on bringing Indian students to Luxembourg. He referenced incubators and announced that next February a large group from India will fly to Luxembourg to participate in a hackathon in various areas, including space. He referenced Luxembourg experiencing a phenomenal growth with more than 1,500 Indian nationals moving to the Grand Duchy during COVID times.

Anjani Ladia, Chairman of the ICAI and Head of Business Control at IQEQ, talked about recruitment in India for global delivery centres across a range of skills. On ESG, he said that there is a gap in the current and future workforce, with a number of issues needed to be addressed to educate students in ESG. He mentioned analysis, auditing and reporting in this context, with the existing workforce also needing such continuous learning. He said a right attitude and personality are key requisites (for Indian nationals moving to Luxembourg), as well as finding the right mentor when moving abroad. He also mentioned trailing spouses who are usually highly qualified and motivated.

In closing the seminar, Philipp von Restorff concluded by referencing the mutually-beneficial relationship between India and Luxembourg.