Trade and Investment Week in India

• India’s economy grew by 6.7% in 2022, making it one of the fastest-growing economies in Asia. India looks set to achieve a similar rate of growth in 2023, and that comes despite a very difficult backdrop with the US and Europe close to recession or slowing, as well as the drag on purchasing power resulting from higher inflation.
• Another supportive budget, including a substantial boost to capital expenditures, will provide the bedrock for growth in 2023, with the private sector also providing some added impetus as private investment weathers the rise in interest rates and as inflation is brought under control by the Reserve Bank of India.
• GDP for the fourth quarter of 2022 slowed to a 4.4% year-on-year rate, down from 6.3% in the third quarter and from 13.2% in the second. However, these year-on-year figures are extremely distorted by pandemic-related volatility in 2022 and need to be treated with great care. It is perhaps better to focus on the full-year 2022 growth rate, which delivered a very solid 6.7% increase from 2021 – one of the fastest rates of economic growth in Asia.
• Consumer spending and capital expenditure led economic growth in the third quarter of 2022. The pattern of growth for the fourth quarter showed business investment still in the driving seat, but less of a boost from consumer spending, and the drag from net exports diminishing.

• India has been our ever faithful and active partner in the socio-economic transformation of this country. This initiative of the highest importance, and which further highlights the extraordinary relationship that Mauritius and India share. An unwavering affinity & resolute collaboration have nurtured a unique, privileged and special bond between the two countries. The extraordinary nature of the India-Mauritius relationship is one that transcends politics, economics, or other developments. It is rooted in our common heritage and our common vision for the future.
• Many Indian companies have made Mauritius their second home by setting up projects here and by using the Mauritian platform for investment in the region. Today, there are over 100 Indian companies in Mauritius across practically all sectors of our economy, ranging from agro industry, manufacturing, tourism and real estate to financial services, ICT, healthcare and education.
• Both Mauritius and India have the shared vision for prosperity and growth for the mutual benefit of their population. This vision has been translated into reality with the coming into operation of the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). Thus, Mauritius offers a wide range of business opportunities for Indian investors across sectors like manufacturing, pharmaceutical production, agriculture, regional trade, financial services, ICT/BPO, real estate, healthcare, education, tourism & hospitality, which are established and growing sectors of activity.
• CECPA is the first trade Agreement signed by India with a country in Africa and mainly covers trade in goods & services. The Agreement is effective as from 1st April 2021 and opens door in enhancing bilateral trade & investment between our 2 countries. This Agreement leads to significant mutual benefits in a very balanced manner by giving impetus to goods and services trade through preferential access for key product lines, a stable and conducive policy environment for services trade & investment, clarity and ease of procedure in areas like customs cooperation, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, dispute settlement and trade remedies.
• Moreover, the CECPA is expected to achieve a high level of liberalisation in terms of bringing most of our trade into the preferential orbit while encouraging new potential areas for goods and services trade. This agreement unlocks the doors of India for preferential access to 615 tariff lines and those of Mauritius to 310 tariff lines for Indian products. It also provides opportunities of trade and investment in some 100 services subsectors, including financial services, ICT, professional services and distribution service.
• India today remains one of our main trading partners. In 2022, Mauritius total exports to India amounted to USD 56.42 MN. Domestic exports increased from USD 25.62 MN in 2020 to USD 50.03 MN, representing an increase of 95%.
• In 2022, India was the second largest import partner of Mauritius with total imports of USD 627.29 MN. Imports from India as a percentage of total imports of Mauritius was 9.8% in 2022.

Bilateral trade and investment flows remains very significant between India and Mauritius. While the share of FDI from India to Mauritius remains low, it is to be noted that Mauritius is trusted by Indian companies for their investment into Africa as close to 90% of FDI flowing from India to Africa transits through Mauritius International Financial Centre.