India Mauritius Relations

Context

Recently, the Prime Minister of India and Mauritius inaugurated an airstrip, jetty, and 6 other projects to ensure maritime security and connectivity to Mauritius’ Agalega islands.

About

• India and Mauritius share a deep and historical bond, with Indian origin population comprising nearly 70% of the island’s population.
• The relationship among the two countries is rooted in shared history, subculture, and democratic values.

Historical Ties

• The first Indians had been shifted to Mauritius from the Puducherry region in 1729 to work as artisans and masons.
• Under British rule, about half one million Indian indentured workers were delivered to Mauritius between 1834 and the early 1900s.
• About -one third of those workers permanently settled down in Mauritius.

Diplomatic Relations

• India established diplomatic relation with Mauritius in 1948, even earlier than the independence of Mauritius.
• India was represented through an Indian Commissioner in British-dominated Mauritius among 1948 and 1968 and thereafter, via a High Commissioner after Mauritius was impartial in 1968.

Economic Cooperation

• India and Mauritius signed a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) in 2021.
• Under the CECPA, India and Mauritius could provide preferential get entry to to some of objects like surgical system, remedy, and textile products that could cater to market necessities on each sides.
• Bilateral trade has been disproportionately in favour of India. (For the FY 2022-2023, Indian exports to Mauritius was USD 462.69 mn, Mauritian exports to India was USD 91.50 mn and Total trade was USD 554.19 mn).
• It has grown by 132% inside the closing 17 years, from USD 206.76 million in 2005-06 to USD 554.19 million in 2022-23.
• FDI: Cumulative FDI really worth USD 161 billion got here from Mauritius to India within the  decades from 2000 – 2022 (26% of overall FDI inflows into India).
• FDI inflows from Mauritius have dropped from USD 15.72 bn in 2016-17 to USD 6.13 bn in 2022-23, with Mauritius was India’s 1/3 biggest supply of FDI.
• Indian Public Sector Undertakings (PSUs) in Mauritius: At present, 11 Indian PSUs are in Mauritius which consist of Life Insurance Corporation, Indian Oil (Mauritius) Limited, State Bank of India (Mauritius), Rail India Technical and Economic Service (RITES) and so on.

Defence Cooperation

• India is the desired defence associate of Mauritius for obtaining systems/gadget, ability building, joint patrolling, hydrological services, and many others.
• Indian defence officers are deputed to the Mauritian Defence Forces. An Indian Navy officer heads the Mauritian National Coast Guard; an Indian Air Force officer commands the Police Helicopter Squadron and an Indian Naval Officer heads the Mauritius Hydrography Services.
• In February 2021, India extended a Line of Credit of USD one hundred mn to Mauritius for buying defence merchandise, underneath which Mauritius has already sourced a Passenger Variant Dornier plane and an Advanced Light Helicopter Dhruv.
• SAGAR: India recalled that it was in Mauritius, for the duration of 2015 that India’s maritime cooperation imaginative and prescient of SAGAR – ‘Security and Growth for All within the Region’ changed into mentioned.

Others

• India has historically been the ‘first responder’ for Mauritius in instances of disaster, inclusive of at some stage in the current Covid-19 and Wakashio oil-spill crisis.
• Mauritius has emerge as the primary us of a to sign up for India’s Jan Aushadhi initiative to be able to advantage the humans of Mauritius by way of offering higher great Made-in-India widely wide-spread medicines.
• RuPay playing cards and UPI connectivity among  international locations have been installed. 

Associated Challenges and Concerns

• Tax Treaty Misuse: The Double Taxation Avoidance Agreement (DTAA) between India and Mauritius had been a point of situation due to its capability misuse for illicit activities like cash laundering and spherical-tripping of budget.
  • It brought about amendments inside the treaty in 2016 and the implementation of the General Anti-Avoidance Rule (GAAR) in 2017.
• Chagos Archipelago Dispute: It is a difficulty of sovereignty and sustainable improvement earlier than the United Nations.
  • In 2019, India voted at the U.N. General Assembly in support of the Mauritian position on the problem.
• Security Concerns: With Mauritius emerging as an important maritime entity in the Indo-Pacific location, security concerns are paramount.
  • India and Mauritius have a sturdy defence partnership, but keeping and enhancing this partnership in the face of evolving regional dynamics can be challenging.
• Logistical and Bureaucratic: While India and Mauritius have a sturdy improvement partnership, the continued implementation of various infrastructure projects and the delivery of promised assistance can pose logistical and bureaucratic demanding situations.

Conclusion

• The courting among India and Mauritius is multifaceted and has grown stronger through the years. The  countries preserve to paintings collectively in various fields, including infrastructure, FinTech, lifestyle, and greater.
• The unique ties between India and Mauritius are a testament to their shared history, cultural affinities, and mutual appreciate.

Source: The Indian express

UPSC Mains Practice Question

Q.Give a brief about India- Mauritius growing relationship and it’s impact on trade between tw

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