India Mauritius 2025

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India Mauritius 2025

Prime Minister Narendra Modi’s visit to Mauritius on March 11-12, 2025, was significant as it coincided with the country’s 57th Independence Day celebrations. This marked Modi’s second visit to Mauritius since 2015, reaffirming the strong and enduring ties between India and Mauritius

Ceremonial Welcome and National Day Celebrations

Upon arrival, PM Modi received a warm ceremonial welcome from Mauritian officials, including Prime Minister Navinchandra Ramgoolam and other dignitaries. The visit was highlighted by Modi being the chief guest at the National Day celebrations on March 12, where he emphasized the shared history and cultural bonds between the two nations. He noted that Mauritius is not only a key partner in the Indian Ocean but also plays a crucial role in India’s engagements with Africa.

Bilateral Agreements and Economic Cooperation

During his visit, PM Modi and PM Ramgoolam engaged in discussions to enhance bilateral relations, focusing on economic cooperation. They agreed to facilitate trade settlements in local currencies—Indian Rupee and Mauritian Rupee—to strengthen trade ties further. Additionally, they planned to hold the second session of the High Power Joint Trade Committee under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to explore new avenues for collaboration.

Modi announced several initiatives aimed at supporting the Mauritian economy, including investments in sectors like pharmaceuticals, IT, and ocean economy. He also expressed India’s commitment to assist in building a new Parliament building for Mauritius as a symbol of their partnership.

Cultural Ties and Community Engagement

PM Modi’s visit also included interactions with the Indian diaspora in Mauritius. He announced an extension of Overseas Citizen of India (OCI) card eligibility to the seventh generation of Indian descendants in Mauritius, reinforcing the cultural ties that bind the two nations.

Overall, PM Modi’s visit underscored India’s role as a leading development partner for Mauritius, aiming for mutual growth and security in the region. The discussions and agreements reached during this visit are expected to pave the way for enhanced cooperation across various sectors, solidifying their historical relationship further.

During Prime Minister Shri Narendra Modi’s visit to Mauritius, several key outcomes emerged from the bilateral agreements signed between India and Mauritius.

Both countries elevated their relationship to an “Enhanced Strategic Partnership.” This decision was announced following bilateral talks with Mauritian Prime Minister Navinchandra Ramgoolam.

4 Main Highlights

1. Enhanced Strategic Partnership

The two countries upgraded their relationship to an “Enhanced Strategic Partnership,” reflecting a deeper commitment to cooperation across various sectors, including trade, security, and governance.

2. Infrastructure Development Support

PM Modi announced India’s support for building a new Parliament building in Mauritius, described as a “gift from the Mother of Democracy,” symbolizing India’s commitment to strengthening democratic institutions in Mauritius.

3. Community Development Initiatives

The visit also included discussions on Phase-II of High Impact Community Development projects aimed at enhancing development partnerships between the two nations.

4. Memorandums of Understanding (MoUs)

A total of eight MoUs were signed, focusing on diverse areas:

Local Currency Settlement System: This agreement between the Reserve Bank of India and the Central Bank of Mauritius aims to facilitate trade in local currencies.
Credit Facility Agreement: A pact to finance water infrastructure projects in Mauritius under the Pipe Replacement Programme, involving the State Bank of India.
Diplomatic Training Program: Collaboration between India’s Institute of Foreign Service and Mauritius’ Ministry of Foreign Affairs for training diplomats.
Maritime Security Cooperation: A technical agreement for sharing White Shipping Information between the Indian Navy and the Mauritius Police Force.
Financial Crime Prevention: An MoU between India’s Enforcement Directorate and Mauritius’ Financial Crimes Commission to combat financial crimes.
MSME Collaboration: A partnership between India’s Ministry of Micro, Small and Medium Enterprises and Mauritius’ Ministry of Industry, SMEs, and Cooperatives to promote small businesses.
Governance Training: An agreement for training public officers between India’s National Centre for Good Governance and the Ministry of Public Service of Mauritius.
Oceanic Research Cooperation: An MoU between India’s National Centre for Ocean Information Services and Mauritius.

Key Outcomes of the Enhanced Strategic Partnership:

Joint Vision Document

Both leaders agreed to a Joint Vision for an Enhanced Strategic Partnership, outlining a collaborative approach to expand cooperation across various sectors, including defense, maritime security, trade, health, education, space, and climate change.

Maritime Security and
Defense Cooperation

The partnership emphasizes a commitment to a "free, safe, secure, and open Indian Ocean." India pledged support for Mauritius' Exclusive Economic Zone (EEZ) security and will assist in establishing a National Maritime Information Sharing Centre and a Police Academy in Mauritius.

Local Currency Trade
Settlement

An agreement was reached to facilitate mutual trade in local currencies (Indian Rupee and Mauritian Rupee), aimed at simplifying transactions and enhancing economic ties.

Development Projects

India announced new development projects worth 500 million Mauritian Rupees (approximately ₹100 crore), including the construction of a new Parliament building in Mauritius, described as a "gift from the Mother of Democracy".

Capacity Building
Initiatives

Over the next five years, India will train 500 civil servants from Mauritius in various fields as part of efforts to enhance governance and administrative capabilities.

Vision MAHASAGAR

PM Modi unveiled the "MAHASAGAR" vision - Mutual and Holistic Advancement for Security and Growth Across Regions - aimed at fostering growth and security within the Global South through collaborative efforts.

High Power Joint Trade Committee (HPJTC)

The High Power Joint Trade Committee (HPJTC) established under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius is poised to significantly influence future trade agreements and economic relations between the two countries. Here are the key ways in which the HPJTC will impact future trade agreements:

01 Enhanced Cooperation Framework

The HPJTC serves as a structured platform for ongoing dialogue and cooperation, allowing both countries to address trade-related issues, assess the implementation of existing agreements, and explore new areas for collaboration. This framework will facilitate timely discussions on emerging trade challenges and opportunities.

02 Regular Review of Trade Policies

The committee will regularly review and assess the effectiveness of current trade policies under CECPA. This continuous evaluation will enable both nations to make necessary adjustments to tariffs, quotas, and regulations, ensuring that the agreement remains relevant and beneficial in a changing global trade environment.

03 Expansion of Preferential Access

The HPJTC is tasked with negotiating additional preferential market access for products of mutual interest. This could lead to the expansion of the existing list of products benefiting from reduced tariffs, thereby enhancing trade volumes and economic cooperation between India and Mauritius.

04 Focus on Sunrise Sectors

The committee will prioritize sectors identified as “sunrise,” such as ocean economy, pharmaceuticals, IT, and fintech. By focusing on these areas, the HPJTC can facilitate targeted investments, technology transfers, and capacity-building initiatives that are crucial for economic growth in both countries.

05 Facilitation of Local Currency Trade

With an agreement to promote trade settlements in local currencies, the HPJTC will work towards implementing mechanisms that simplify transactions between Indian and Mauritian businesses. This move is expected to reduce transaction costs and currency risks, encouraging more trade activity.

06 Strengthening Dispute Resolution Mechanisms

The committee will oversee dispute resolution processes outlined in CECPA, ensuring that any trade disputes are addressed efficiently and fairly. A transparent dispute resolution mechanism fosters trust between trading partners and encourages compliance with agreed-upon terms.

07 Promotion of Investment Opportunities

By identifying new investment opportunities in both countries, the HPJTC can attract foreign direct investment (FDI) into Mauritius while also facilitating Indian companies’ access to African markets through Mauritius as a gateway. This strategic positioning can enhance economic growth prospects for both nations.

08 Collaboration on Regulatory Standards

The committee will work on harmonizing regulatory standards across various sectors, including sanitary and phytosanitary measures. This alignment will facilitate smoother trade flows by reducing barriers related to compliance with differing regulations.

Key Aspects of the Mahasagar Vision

India and Mauritius have recently elevated their bilateral relations to an “enhanced strategic partnership,” marking a significant milestone in their diplomatic ties. This development was highlighted during Prime Minister Narendra Modi’s visit to Mauritius, where he unveiled the “Mahasagar” vision, which stands for “Mutual and Holistic Advancement for Security and Growth Across Regions.” This vision aims to enhance cooperation in various sectors, particularly amidst growing concerns over China’s influence in the Indian Ocean region.

Foundation on SAGAR Policy: The Mahasagar vision builds upon the previous SAGAR (Security and Growth for All in the Region) policy introduced by Modi during his 2015 visit to Mauritius. The new framework seeks to expand India’s engagement with the Global South beyond the original SAGAR objectives.

Focus Areas:
- Trade and Development: The vision emphasizes trade as a vehicle for development, promoting economic collaboration through local currency transactions to reduce reliance on major currencies.
- Capacity Building: It aims at enhancing capacity building for sustainable growth, ensuring that nations in the Global South can develop their own capabilities.
- Mutual Security: A significant component is mutual security cooperation, particularly in maritime security, which is crucial given the strategic location of Mauritius in the Indian Ocean.

Agreements Signed: During Modi’s visit, eight agreements were signed covering various sectors including:
- Maritime security
- Trade facilitation
- Defense cooperation
- Technology sharing and capacity building initiatives.

Strategic Implications: The Mahasagar vision is seen as a response to increasing Chinese maritime activities in the region, reinforcing India’s commitment to maintaining a free and secure Indian Ocean. Modi reiterated India’s readiness to support Mauritius in securing its Exclusive Economic Zone (EEZ)

The commitment to high-impact community development projects across Mauritius is expected to address local needs effectively while promoting social welfare. These projects will likely enhance infrastructure in health, education, and public services, thereby uplifting various segments of society.

Overall, PM Modi’s visit has reinforced India’s role as a key development partner for Mauritius, with initiatives aimed at boosting trade, enhancing infrastructure, and supporting economic diversification that are expected to yield long-term benefits for the Mauritian economy.

Bilateral relations between India and Mauritius

Relations between India and Mauritius are time tested and enduring. Both countries share a long-standing economic connection which dates to the colonial times. Until 1870, Mauritius used to switch its usage between the Pound Sterling (gold) and the Indian Rupee (silver) as its currency. Between 1878 and 1934, Mauritius was part of a common monetary union with India, and therefore the legal tender in Mauritius was the Indian Rupee.

In recent years, economic and commercial relations between India and Mauritius have seen growth. At the same time, there is considerable untapped potential available in the development of economic and commercial cooperation between the two countries. With a view to energizing the economic & commercial relations, the two countries signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) in February 2021, which is the first such Agreement of India with an African country.

This visit not only reinforces diplomatic relations but also symbolizes India's commitment to strengthening partnerships within the Indian Ocean region as part of its broader strategic SAGAR vision (SAGAR: Security And Growth for All in the Region).

India's aid facilitates Mauritius's efforts to diversify its economy beyond traditional sectors like sugar and textiles:
Emerging Sectors: Support for sectors such as ICT, biotechnology, and renewable energy helps Mauritius build a more resilient economy capable of withstanding global market fluctuations.
Regional Hub Development: With its strategic location, Mauritius can leverage its relationship with India to position itself as a regional hub for trade and investment in Africa, tapping into new markets.

India has been one of the largest trading partners of Mauritius. During 2024, Indian exports to Mauritius was USD 726.7 Mn and Mauritian exports to India was USD 44.5 Mn. Total trade was USD 771.2 Mn.

Diplomatic relations between India and Mauritius have been established since 1948, further solidifying their partnership through high-level political interactions and various bilateral agreements across multiple sectors such as education, health, and security.

In September 2023, Mauritius was invited as guest country to form part of the G 20 leaders’ summit. In parallel, the CII was mandated to do the B20 Summit in India. This Summit saw one of the largest gathering of leaders from the national and global stages, who converged to share their perspectives covering a huge spectrum, spanning almost all facets of growth and development.

Prime Minister Sri Narendra Modi is set to visit Mauritius on March 11-12, 2025, as the Chief Guest for the country's 57th National Day celebrations on March 12. This visit marks his first return to Mauritius since 2015, emphasizing the strong ties between India and Mauritius, where most of the population is of Indian descent.

India's financial assistance, including grants and lines of credit, has been instrumental in developing critical infrastructure in Mauritius. Projects funded by India have included:
Public Transportation: The Metro Express project, supported by Indian funding, enhances connectivity and reduces traffic congestion, promoting economic activity.
Healthcare and Education: Investments in these sectors improve the quality of life and workforce productivity, leading to a more skilled labor force.

India's economic aid fosters long-term growth for Mauritius through infrastructure development, enhanced trade relations, increased FDI, economic diversification, and growth in financial services. These elements collectively contribute to building a sustainable economic future for Mauritius.

CECPA

Mauritius and India signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) on 22 February 2021, during the visit of the External Affairs Minister Dr. Subrahmanyam Jaishankar. It came into force on 1 April 2021. The India-Mauritius CECPA is the first trade agreement signed by India with an African country and the first such agreement signed by India since 2011.

Under CECPA, Mauritius provides preferential access to India on 310 products, with Tariff Rate Quotas on 88 products such as spices, tea, plastic articles, wooden furniture, parts of motor vehicles, amongst others.

Mauritius benefits from preferential market access into India for 615 products, including frozen fish, specialty sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel. Both Parties also agreed to pursue negotiations after the coming into force of the Agreement to extend preferential market access on a list of products of interest to each Party.

India has been one of the largest trading partners of Mauritius. During 2024, Indian exports to Mauritius was USD 726.7 Mn and Mauritian exports to India was USD 44.5 Mn. Total trade was USD 771.2 Mn.

Currently, top 5 Indian exports to Mauritius and market share for these products in Mauritius are mineral fuels (16%), motor vehicles (10%), pharmaceuticals (10%), cotton (9%) and cereals (6%). Top 5 Mauritian exports to India and market share for these products of Mauritian exports are iron & steel (47%), medical or surgical instruments and apparatus (32%), Aluminium and articles thereof (10%), wood & articles of wood (2%) and recovered (waste and scrap) paper (2%).

Following the CECPA agreement, imports from India as a percentage of total imports to Mauritius experienced fluctuations: rising from 9.8% in 2020 to 15.6% in 2021, dropping back to 9.8% in 2022, slightly increasing to 10.2% in 2023 and then was 11.0% in 2024.

According to the Mauritius Revenue Authority (MRA), India's exports to Mauritius under CECPA amounted to USD 1.1 million in 2021, USD 1.8 million in 2022, USD 3 million in 2023, and USD 3.4 million in 2024.

There was an increase in Mauritian exports under CECPA from zero in 2021 to USD 1 million in 2022, USD 5 million in 2023, and USD 6.4 million in 2024 comprising sugar (USD 9,128) and medical devices (USD 6.39 MN).

Notably, Mauritian exports of medical devices and sunglasses have been duty-free under CECPA since April 2023, compared to previous duties of 7.5% and 20%, respectively.

Aggressive promotional efforts must be undertaken vis-a-vis the Indian business community to promote the advantages of sourcing eligible Mauritian products under CECPA with respect to other competitors. This will go a long way into further enhancing our domestic exports into this emerging market.

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