India-Mauritius Relations: Deepening Long-Standing Ties

Brief Context

PM Narendra Modi’s visit to Mauritius as the guest of honor at its Independence Day celebrations highlights the strategic depth of India-Mauritius relations amid global geopolitical uncertainties.

Source Content

Syllabus: GS2/International Relation

Context

• PM Narendra Modi’s visit to Mauritius as the guest of honor at its Independence Day celebrations highlights the strategic depth of India-Mauritius relations amid global geopolitical uncertainties.
  • The visit reaffirms India’s commitment to Mauritius’ security, economic growth, and regional stability.

About India-Mauritius Partnership

• Historical and Cultural Connections: Mauritius is a former British and French colony that gained independence from British rule in 1968.
• Both countries share a historical connection dating back to the 19th century when Indian indentured laborers were brought to the island under British rule.
  • Mahatma Gandhi’s visit to Mauritius (Oct 29 – Nov 15, 1901): Advocated education, political empowerment, and ties with India.
  • Today, nearly 70% of Mauritius’s population traces its roots to India, and this cultural affinity has remained a cornerstone of bilateral relations.
  • Institutions like the Mahatma Gandhi Institute and the World Hindi Secretariat further nurture these cultural connections.
  • India’s cultural influence is evident in Mauritius’s language, cuisine, festivals, and traditions.

• Political and Diplomatic Engagement: Diplomatic relation was established in 1948.
  • Mauritius has consistently supported India’s position in international forums, including at the United Nations (UN) and the Commonwealth.
  • India, in return, has backed Mauritius’s territorial claim over the Chagos Archipelago, a matter of dispute with the United Kingdom.
• Economic and Trade Relations:
  • Trade: It has grown in the last 18 years, from USD 206.76 million in 2005-06 to USD 851.13 million in 2023-24.
  • Comprehensive Economic Cooperation and Partnership Agreement (CECPA): The first such agreement between India and an African nation, granting preferential market access.
  • Foreign Direct Investment (FDI): Mauritius was the second largest source of FDI into India for FY 2023-24, after Singapore.
    • Since the signing of the Double Taxation Avoidance Convention (DTAC), FDI inflows from Mauritius have dropped from USD 15.72 bn in 2016-17 to USD 6.13 bn in 2022-23.
  • Financial Assistance: India has provided multiple lines of credit, including a $100 million defense credit line.
  • Special Economic Zones (SEZs): India is helping Mauritius develop infrastructure for economic growth.
• Development Assistance:
  • Metro Express Project: Improving public transport in Mauritius.
  • Social Housing Project: Affordable housing for citizens.
  • Health Sector Support: Assistance in building hospitals and providing COVID-19 vaccine aid during the pandemic.
• Strategic and Defense Cooperation: Mauritius holds strategic importance for India as a sentinel of the western Indian Ocean.
  • Maritime Surveillance: India assists Mauritius in patrolling its waters to counter piracy and illegal fishing.
  • Infrastructure Development: India has contributed to the construction of a new naval dockyard in Mauritius.
    • India has assisted in setting up radar networks to enhance maritime monitoring.
    • India is developing infrastructure on the Agalega Islands, improving air and naval connectivity
  • Defense Equipment Supply: India continues to supply defense equipment under favorable credit terms.
  • Anti-Piracy Operations: Joint efforts to combat piracy and illicit activities in the region.
• Vision SAGAR and Regional Growth: India’s Vision SAGAR (Security and Growth for All in the Region) emphasizes regional cooperation and maritime security.
  • Mauritius, as a close maritime neighbor, plays a pivotal role in this vision.

Emerging Areas of Cooperation

• Digital Economy and FinTech: India is assisting Mauritius in developing digital payment systems modeled after India’s UPI (Unified Payments Interface).
  • Cybersecurity cooperation is being strengthened to counter digital threats in the financial sector.
• Renewable Energy and Climate Change: India is helping Mauritius transition to clean energy solutions, including solar and wind power projects.
  • Mauritius is a member of the International Solar Alliance (ISA), an initiative led by India to promote solar energy adoption.
• Space Cooperation: India has offered satellite technology and remote sensing capabilities to Mauritius for disaster management, weather forecasting, and maritime security.

Key Challenges

• Tax Treaty Amendments: India’s revision of the Double Taxation Avoidance Agreement (DTAA) with Mauritius has reduced its attractiveness as an FDI gateway.
• Growing Chinese Influence: China is increasing its economic footprint in Mauritius, particularly through investments in infrastructure and trade, potentially challenging India’s strategic leverage.
• Security Threats: Rising maritime piracy and illegal fishing in the Indian Ocean demand stronger maritime cooperation.

Road Ahead: Future Prospects

• Expanding Trade Agreements: Strengthening CECPA by including more sectors like IT and healthcare services.
• Boosting Defense Ties: Increasing India’s role in Mauritius’ defense modernization and joint military drills.
• Strengthening Regional Cooperation: Mauritius can act as a bridge for India’s deeper engagement with Africa and the Indian Ocean Rim Association (IORA).

Conclusion

• The India-Mauritius partnership is a model bilateral relationship, built on shared history, economic cooperation, and strategic alignment. 
• As India expands its Indo-Pacific strategy and Africa outreach, Mauritius remains a crucial partner in achieving regional stability and economic growth. 
• With increasing collaboration in trade, defense, digital economy, and climate change, this partnership is set to grow stronger in the years to come.

Source: TH