India-Mauritius Joint Vision for an Enhanced Strategic Partnership

Context: Indian Prime Minister Narendra Modi, visited Mauritius as the chief guest for the country’s National Day celebrations.

India-Mauritius Ties

Historical and Cultural Ties

• Indian Diaspora: Nearly 70% of Mauritius’ population is of Indian origin, mainly descendants of indentured laborers brought by the British.
• French and British Rule:
  • French rule (1700s): Indians from Puducherry were brought as artisans and masons.
  • British rule (1834–early 1900s): Around 500,000 Indian indentured laborers arrived; two-thirds settled in Mauritius.
• Gandhi’s Influence: Mahatma Gandhi’s visit in 1901 inspired political awareness and the importance of education and empowerment.
• Seewoosagur Ramgoolam: Led the freedom struggle and became the first PM of independent Mauritius; had close ties with Indian leaders like Gandhi, Nehru, and Subhash Chandra Bose.

Political and Diplomatic Ties

• Diplomatic Relations: Established in 1948 after India’s independence.
• Chagos Archipelago Dispute: India supports Mauritius’ territorial claim over the Chagos Islands.
• Political Influence: Mauritius has been ruled mainly by two political families — the Ramgoolams and the Jugnauths — both maintaining strong ties with India.

Economic and Trade Cooperation

• CECPA (Comprehensive Economic Cooperation and Partnership Agreement):
  • Signed in 2021, the first trade agreement between India and an African country.
  • Facilitates preferential access to each other’s markets.
• FDI:
  • Mauritius is the second-largest source of FDI into India after Singapore in FY 2023–24.
  • Double Taxation Avoidance Agreement (DTAA) signed in 1983 boosted Mauritius’ position as an investment hub for Indian businesses.
• Indian PSUs in Mauritius:
  • Bank of Baroda, Life Insurance Corporation (LIC), and NBCC operate in Mauritius.
• Development Assistance:
  • India’s assistance in the last decade = $1.1 billion ($729 million as lines of credit and $427 million as grants).
  • Key projects include the Metro Express and 96 small development projects (51 inaugurated).

Defence and Maritime Security

• Agaléga Island:
  • Infrastructure developed for sea and air connectivity under the 2015 MoU.
  • Facilities aid maritime surveillance and patrolling of Mauritius’ Exclusive Economic Zone (EEZ).
  • India mobilized assets to assist during Cyclone Chido in 2023.
• White Shipping Agreement: Likely to be signed to enhance real-time data sharing between the Indian Navy and Mauritius authorities.
• First Responder: India has provided rapid assistance during the Covid-19 pandemic, Wakashio oil spill (2020), and cyclones.

Space and Technological Cooperation

• In 2022, India assisted Mauritius in launching its first satellite under ISRO collaboration.
• MoU signed in 2023 for joint satellite development with the Mauritius Research and Innovation Council (MRIC).
• Telemetry, Tracking, and Telecommand (TTC) Station: Established under the 1986 agreement for satellite and launch vehicle monitoring.

Capacity Building and Education

• Indian Technical and Economic Cooperation (ITEC):
  • Over 4,940 Mauritians have been trained since 2002 in civilian and defence sectors.
  • About 2,300 Indian students are currently studying in Mauritius in fields like medicine, business, and hotel management.
• Cultural Ties:
  • Mahatma Gandhi Institute and Indian Cultural Centre foster shared heritage.
  • Maha Shivratri and the Ganga Talao pilgrimage reflect strong cultural bonds.

Strategic Significance

• Indian Ocean Region: Mauritius is critical for India’s SAGAR (Security and Growth for All in the Region) strategy to counter China’s growing influence.
• Blue Economy: India is supporting Mauritius in developing its blue economy to strengthen maritime security and sustainable ocean resource management.

Challenges in India-Mauritius Relations

• Declining FDI from Mauritius: The 2016 amendment of the DTAA reduced Mauritius’ appeal as an FDI conduit to India.
  • Eg., FDI from Mauritius dropped from $15.72 billion in 2016-17 to $6.13 billion in 2022-23, making it the third-largest FDI source after Singapore and the USA.
• Maritime and Security Challenges: The Indian Ocean Region (IOR) faces growing threats like drug trafficking and illegal fishing.
• Delays in Infrastructure Projects: India-backed projects in Mauritius face delays due to bureaucratic and implementation issues.
  • Eg., The Metro Express Project under India’s $500 million Line of Credit faced significant delays initially.
• Trade Imbalance and Limited Diversification: India’s exports to Mauritius significantly exceed Mauritius’ exports to India.
  • Eg., In 2023-24, India’s exports to Mauritius were $778 million, while Mauritius’ exports to India were only $73 million.
• Growing Chinese Influence: China constructed the Mauritius Supreme Court and provided infrastructure loans, raising debt dependency concerns.

Way Forward

• Enhancing Maritime Security and Strategic Cooperation: Establish a White Shipping Agreement with Mauritius, similar to the one with France.
• Countering China’s Influence through Strategic Diplomacy: Increase infrastructure grants, technology partnerships, and soft power initiatives.
• Long-Term Strategic Vision: Follow the India-UAE Vision 2030 and India-Singapore Smart City Collaboration models.
• Strengthening Economic and Trade Ties: Revise the DTAA to boost FDI and expand CECPA to cover sectors like IT, fintech, and renewable energy.
• Cultural and Diaspora Engagement: Strengthen institutions like the Mahatma Gandhi Institute and the World Hindi Secretariat.
• Innovation and Skill Development: Boost youth and skill-building programs and promote fintech and digital payment integration such as India’s UPI model to Mauritius.

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