India-Mauritius Relations


Published on 11 Aug 2024

WHY IN NEWS?


India and Mauritius saw an unprecedented deepening of ties with events like joint inauguration of airstrip and jetty in Agalega Islands, inauguration of 14 India led projects in the Islands during the visit of the Indian President and an amendment to DTAA

INTRODUCTION

Location 

Mauritius -  An island nation in the Indian Ocean, considered part of the African Continent. 



Introduction
India and Mauritius share a strong relationship with historical, cultural, economic, and strategic ties, dating back to Indian migration. 

Brief History

  • Historical ties:


  • Indentured Labourers: From the 1820s, Indian labourers arrived to work on sugar plantations, with significant numbers brought in as indentured labourers after the abolition of slavery in 1834. The ship 'Atlas' brought the first group of Indian indentured labourers to Mauritius on November 2, 1834, now commemorated as 'Aapravasi Day' in Mauritius.

  • Mahatma Gandhi : Gandhi had a short stay in Mauritius in 1901. In tribute to Gandhi and India's freedom struggle, Mauritius celebrates its National Day on March 12, marking the launch of the Dandi Salt March.


  • Diplomatic ties: India initiated diplomatic relations with Mauritius in 1948, before Mauritius gained independence. From 1948 to 1968, India's representation was by a Commissioner, transitioning to a High Commissioner after Mauritius became independent.


Current Importance

  • Demography: An essential aspect of the deepening India-Mauritius ties lies in the fact that around 70% of Mauritius' 1.2 million residents are of Indian descent. This demographic connection has greatly strengthened cultural bonds between the nations. 

  • Mutual support: Mauritius backs India's push for a permanent seat on the UN Security Council, while India supports Mauritius' sovereignty claim over the Chagos Islands, retained by the UK post-independence. Additionally, they collaborate on various regional and global platforms.

  • Economic Relations: Mauritius is a significant investor in India. According to the RBI census for FY23, the US (17%) was the largest FDI source for India followed by Mauritius (15%) and the United Kingdom.

  • Neighbourhood First policy :Projects supported by India's financial aid underscore the "Neighbourhood First" policy, reflecting India's commitment to the prosperity and advancement of its neighbouring nations.

  • China’s Growing Presence in the Indian Ocean Region: India and Mauritius collaboration serves as a defence against external pressures especially from China, safeguarding their interests in this strategically vital maritime domain.


Areas Of Cooperation


  • Economy 

    • Trade - The bilateral trade is around $555 million. India primarily exports petroleum products, pharmaceuticals, cereals, cotton, shrimp, prawns, and bovine meat to Mauritius, while Mauritius exports vanilla, medical devices, needles, aluminium alloys, scrap paper, refined copper, and men's cotton shirts to India.

    • FDI: Over the past two decades, Mauritius contributed USD 161 billion in FDI to India. Conversely, Indian companies invested over USD 200 million in Mauritius in the past five years. 

    • Comprehensive Economic Cooperation and Partnership Agreement (CECPA): India and Mauritius signed CECPA on February 22, 2021,marking India's first trade pact with an African nation. 

    • Public Sector Undertakings : Mauritius hosts 11 Indian PSUs including Bank of Baroda, Life Insurance Corporation, and Indian Oil (Mauritius) Limited, New India Assurance Corporation among others.


  • International Arena 

    • Multilateral Platforms -  India engages with Mauritius through multilateral platforms like the Indian Ocean Rim Association (IORA) , Indian Ocean Naval Symposium (IONS) , Colombo Security Conclave & World Trade Organisation.

    • Global Biofuel Alliance - During the G20 Summit 2023, Prime Minister of India, alongside leaders from Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius, and UAE, inaugurated the Global Biofuel Alliance (GBA).

  • Education

    • Indian Technical and Economic Cooperation(ITEC): Mauritius is among the primary recipients of the ITEC program ,receiving around 400 training opportunities annually across various courses. 

    • Scholarships: Through the Indian Council for Cultural Relations(ICCR) Africa Scholarship Scheme, Mauritius receives 65 scholarship slots annually for higher education in India.

    • Pan African e-Network Project: Launched in 2009, connects Mauritius and other African nations to India via satellite and fibre-optic networks, enabling the exchange of India's expertise in education and healthcare. 


  • Cultural Relations

    • Institutes - Mauritius hosts the Mahatma Gandhi Institute (MGI) (1976) and   Rabindranath Tagore Institute (RTI) (2000) that serves as a centre for the study of Indian culture and traditions.

    • World Hindi Secretariat - Mauritius is home to the World Hindi Secretariat, inaugurated during President Kovind's visit in March 2018.

    • Indira Gandhi Centre for Indian Culture (IGCIC) - Established in 1987, IGCIC is India's largest cultural centre overseas. It offers classes in Hindustani music, Kathak, Tabla, and Yoga.

    • Diaspora: Mauritius hosts approximately 17,403 Indian nationals and 11,600 OCI card holders. Indian tourists have enjoyed visa-free access to Mauritius since 2004, while Mauritian tourists receive gratis E-tourist visas for India. 


  • Health Sector 

    • Jan Aushadhi scheme (JAS): Mauritius has become the first nation to adopt the 'Jan Aushadhi Scheme', sourcing approximately 250 high-quality medicines from India's Pharmaceuticals and Medical Devices Bureau.

    • Crisis Management: During crises such as the Wakashio oil spill and the Covid-19 pandemic, India has provided vital support to Mauritius.

  • Strategic

    • Space Sector:The collaboration in space between India and Mauritius traces back to 1986 when ISRO set up a ground station in Mauritius for satellite tracking

      • An MoU has been established between ISRO and the Mauritius Research and Innovation Council (MRIC) for collaborative small satellite development.

    • Defence : Over time, aided by India's assistance, Mauritius has bolstered the capabilities of its security forces and improved the effectiveness of its National Coast Guard through restructuring and capacity building initiatives. 

      • India's upgraded airstrip on Agaléga Island in Mauritius facilitates the deployment of P8I maritime reconnaissance aircraft, bolstering maritime surveillance.

      • India supports Mauritius with defence personnel, supplying helicopters, ships, aircraft, and interceptor boats.

      • India's support to Mauritius includes establishing the Coastal Surveillance Radar System (CSRS) in 2011, enhancing coastal surveillance and Maritime Domain Awareness (MDA) in the Indian Ocean.

      • India’s SAGAR (Security and Growth for All) vision was introduced in Mauritius, emphasising enhanced economic and security cooperation with maritime neighbours.


Areas of conflict 

  • Local Protests - In 2020, the country experienced widespread protests, with demonstrators accusing the Mauritian government of endangering national security by giving defence space to India especially in Agalega Islands.

  • Chinese influence: China has extended its influence in Africa and the Indian Ocean, including Mauritius. The operationalization of China's Free Trade Agreement (FTA) with Mauritius in January 2021 further expands China's Belt and Road strategy in Africa while the potential benefits of this FTA for Mauritius are uncertain.

  • Chagos Islands-While India supports Mauritius regaining control of Chagos, it also favours the continued presence of the US base in Diego Garcia. India recognizes the strategic value of the US base in monitoring Chinese activities in the Indian Ocean Region (IOR).

  • Trade imbalance: The bilateral trade is heavily in favour of India with India having a $370 million surplus.

  • Mauritius Route: FDIs from Mauritius are suspected to be round-tipping by rerouting investments from tax havens by avoiding taxes in India.



Way forward

  • Transparency: Mauritius is a significant source of Foreign Portfolio Investments (FPI) in the Indian securities market, but concerns exist about illegal fund channels through shell companies. Ensuring transparency in financial transactions from Mauritius is vital for market integrity. By promoting transparency, authorities can mitigate risks, bolster investor confidence, and foster legitimate capital flows.

  • Continued Collaboration: India and Mauritius should continue their collaborative efforts in safeguarding the Indian Ocean by further strengthening joint naval patrols, exercises, and enhancing bilateral agreements on maritime security. Active participation in regional forums and continued assistance in enhancing maritime infrastructure will reinforce their commitment to ensuring peace and prosperity in the region.

  • Sustain & Improve Engagement - Despite the historical cultural ties between India and Mauritius, which date back to colonial times, and the recent development of a special partnership, India should not assume its influence in Mauritius is assured. Instead, it must maintain and improve its engagement with this significant island nation.

  • Resolving issues - The resolution of the Chagos island issue necessitates the involvement of international forums to ensure a fair and equitable outcome. These forums can provide a platform for dialogue and mediation between the parties involved, fostering diplomatic solutions and promoting adherence to international law.


    Short Takes


    Double Tax Avoidance Agreement (DTAA): A treaty signed between two countries to prevent non-residents from paying taxes twice on the same income. India has signed DTAA with 85 nations to safeguard non-resident Indians from paying tax in both India and the host nation on their income, ensuring agreed-upon tax rates on income arising from each country. For eg. Indians employed in Mauritius can avoid taxation twice in both nations for their income.

    Comprehensive Economic Cooperation and Partnership Agreement (CECPA) - India and Mauritius signed the CECPA on February 22, 2021, India's first trade deal with an African country. 



CONCLUSION


Mauritius is increasingly becoming integral to India's Ocean Diplomacy goals which is frequently acknowledged in recent discussions between their leaders. As Mauritius evaluates its future policy directions,amidst evolving regional geopolitics, India's at

Tags:
Polity

Keywords:
India-Mauritius IR Maritime Security