India Mauritius partnership underscores the historical, cultural, and linguistic bonds shared by the two countries, as well as their interconnectedness via the Indian Ocean.
India and Mauritius are united by history, ancestry, culture, language, and their shared waters in the Indian Ocean. More than 68% of Mauritius’ population consists of people of Indian origin, affectionately known as Indo-Mauritians. Their presence has significantly shaped the cultural fabric of Mauritius. From the 1820s, Indian workers arrived to toil on sugar plantations, and after the abolition of slavery in 1834, large numbers of Indian indentured laborers settled permanently in Mauritius. The arrival of the ship ‘Atlas’ on November 2, 1834, marked a pivotal moment, now commemorated as ‘Aapravasi Day.’
India Mauritius relationship extends beyond cultural bonds. In 1983, India intervened militarily in Operation Lal Dora, ensuring that Mauritius remained within its strategic orbit. Today, both nations collaborate in combating piracy, a significant threat in the Indian Ocean region. Mauritius stands firmly with India in its fight against terrorism.
Mauritius is integral to India’s approach to the Indian Ocean. The development partnership between the two nations has emerged as a key pillar of their close relationship. Under India’s Vaccine Maitri program, Mauritius was among the first countries to receive COVID-19 vaccines, demonstrating India’s commitment to its partners’ needs and priorities. In a significant move, Mauritius became the first country to join India’s Jan Aushadhi scheme, providing affordable generic medicines to its citizens.
India had previously extended a US$ 353 million Special Economic Package to Mauritius in May 2016 for five priority projects. The completion of the Social Housing Project marks a significant achievement. Additionally, both countries hope to create a shining example of cooperation in solar energy. The establishment of the Civil Service College enhances administrative capacity and governance. Additionally, an 8 Mega Watt Solar PV Farm addresses climate challenges, benefiting thousands of households and reducing CO2 emissions.
India Mauritius Trade and Investment
Mauritius holds a special place in India’s foreign direct investment (FDI) landscape. It ranks among top investing countries, with FDI inflows amounting to over $101 billion. The economic ties between India Mauritius continue to strengthen.
India has been a key trading partner for Mauritius since 2005. In the fiscal year 2022-2023, Indian exports to Mauritius reached USD 462.69 million, while Mauritian exports to India stood at USD 91.50 million, resulting in a total trade volume of USD 554.19 million. Over the past 17 years, trade between India Mauritius has grown by an impressive 132%.
What is the India Mauritius Tax Treaty?
The India Mauritius Tax Treaty, also known as the Double Tax Avoidance Agreement (DTAA), seeks to provide tax certainty to investors and promote bilateral trade and investment. Imagine a scenario where an Indian individual works for a company in Mauritius. Without this treaty, they might end up paying taxes in both countries on the same income. The DTAA prevents such situations by ensuring that taxpayers are not burdened with double taxation.
In 2024, India and Mauritius signed a protocol amending the DTAA. One significant revision was the introduction of a new article to satisfy the principal purpose test.
The India-Mauritius Tax Treaty plays a crucial role in making both countries attractive for investment. By avoiding double taxation and providing tax certainty, it encourages investors to explore opportunities across borders. As India Mauritius continue their economic partnership, this treaty remains a cornerstone of their collaboration.
Cooperation in Maritime Security
On February 29, 2024, Indian Prime Minister Narendra Modi and his Mauritian counterpart, Pravind Jugnauth, jointly inaugurated a new airstrip and jetty on Agalega Island, Mauritius.
The opening of the new Agalega airstrip and jetty will enhance connectivity within our Republic. Our heartfelt thanks to Prime Minister Shri Narendra Modi Ji @narendramodi and his Government for the unconditional support given to Mauritius. pic.twitter.com/BsBBrI8L4z
— Pravind Kumar Jugnauth (@KumarJugnauth) February 29, 2024
This event marked the culmination of years of planning and collaboration. But why is Agalega Island so strategically important?
Agalega, located 1,100 kilometers north of the main island of Mauritius, occupies a critical position in the IOR. It shares borders with Seychelles to the north, the Maldives and the Chagos Islands (including the U.S. base at Diego Garcia) in the east, and Madagascar and the entire eastern coast of Africa to the west. Moreover, Agalega falls within a vast 2.3 million square kilometer exclusive economic zone (EEZ).
The idea of enhancing Agalega’s infrastructure was initially conceived in 2005. During Modi’s 2015 visit to Mauritius, India formalized plans to establish, develop, and refurbish the island’s facilities. These plans included improving the existing 10,000-foot runway to accommodate large commercial aircraft. Additionally, the project aimed to build a port near the current jetty, establish institutions for intelligence and communications, and install a transponder system to track ships traversing the Indian Ocean.
However, local protests erupted, with accusations that the Mauritian government was compromising national security through these agreements. Despite the challenges, construction began in 2019, and now the infrastructure is operational.
India’s commitment to regional maritime security extends beyond Agalega. In 2015, India unveiled its “Security and Growth for All in the Region” (SAGAR) policy. This policy aims to strengthen India’s maritime capabilities and enhance its presence in the IOR. Given the region’s significance for global trade, major powers like the United States, France, the United Kingdom, and China have also increased their naval presence.
India’s actions in Mauritius demonstrate its role as a “net security provider” in the IOR. By investing in infrastructure and cooperating with maritime partners, India seeks to safeguard vital sea lanes, combat piracy, and respond to emerging security challenges. The Agalega project exemplifies India’s commitment to collective security and stability.
The joint inauguration of Agalega’s new facilities signifies a milestone in India Mauritius relations. As the Indian Ocean continues to shape geopolitics and trade, both nations recognize the imperative of safeguarding their shared maritime interests.
The increased military activities of China in the Indian Ocean have raised concerns. Both India and Mauritius recognize the need for vigilance and cooperation to maintain regional stability.
In conclusion, the India Mauritius partnership exemplifies a shared commitment to development, security, and mutual progress. As they navigate the challenges of the Indian Ocean, their historic ties continue to flourish, benefiting both nations and their people.