India, Mauritius to settle trade in local currencies; strengthen economic ties

PM Modi and Mauritian PM Ramgoolam agree to boost trade, launch joint infrastructure projects, and deepen cooperation under CECPA during high-level talks in Mauritius.

March 13, 2025

PM Narendra Modi and PM Navinchandra Ramgoolam agreed to convene the second session of the High Power Joint Trade Committee under the CECPA to deepen economic ties

Both leaders committed to strengthening cooperation in key sectors including ocean economy, IT, Fintech, and pharmaceuticals

They agreed to ratify the amended Double Taxation Avoidance Agreement in alignment with international standards

India reaffirmed its role as Mauritius’ leading development partner, with key infrastructure projects already delivered and more in the pipeline

India and Mauritius have agreed to facilitate trade settlements in their respective local currencies—the Indian Rupee and the Mauritian Rupee—marking a significant move to derisk bilateral trade and reduce dependency on third-party currencies. The agreement follows the signing of a Memorandum of Understanding (MoU) between the central banks of both countries.

The decision came during Prime Minister Narendra Modi’s state visit to Mauritius from March 11–12, where he held extensive discussions with his counterpart, Prime Minister Navinchandra Ramgoolam. The two leaders reviewed the entire spectrum of bilateral relations and jointly reaffirmed the “special and unique relationship” shared by India and Mauritius, which is deeply rooted in history, culture, kinship, and shared values.

As part of the India-Mauritius Joint Vision for an Enhanced Strategic Partnership, both sides agreed to convene the second session of the High Power Joint Trade Committee under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). The CECPA, India’s first trade pact with an African country, has been a cornerstone of bilateral trade and investment relations.

The leaders committed to broadening trade and commercial ties, with a focus on sunrise sectors such as the ocean economy, pharmaceuticals, IT, and fintech. They also agreed to ratify the Protocol on Amendment of the Double Taxation Avoidance Agreement to align with evolving global standards on treaty abuse.

Highlighting Mauritius’s geostrategic location and membership in the African Continental Free Trade Area (AfCFTA), Prime Minister Ramgoolam encouraged Indian businesses to use Mauritius as a strategic launchpad for expanding into African markets.

India remains Mauritius’s leading development partner, having supported numerous infrastructure initiatives over the decades. PM Modi’s visit underscored India’s continued commitment, as both sides acknowledged the importance of completed projects like the Metro Express, New Supreme Court Building, ENT Hospital, Social Housing Units, and digital education initiatives.

India’s assistance in constructing a new runway and jetty at Agalega was particularly highlighted. The infrastructure played a key role in delivering emergency humanitarian aid following Cyclone Chido. Ramgoolam thanked India for its swift response, reaffirming New Delhi’s role as a “First Responder” in times of crisis.

Looking ahead, the two leaders announced a range of development-focused collaborations, including:

  • Timely delivery of 100 electric buses and related infrastructure
  • Execution of Phase II of the High-Impact Community Development Projects
  • Implementation of a 100 km water pipeline replacement project under an INR-denominated Line of Credit
  • Finalisation of discussions for a new Parliament building
  • Implementation of a plan to redevelop the Ganga Talao Spiritual Sanctuary, with Indian grant assistance

Modi’s visit also saw renewed people-to-people engagement and cultural diplomacy. He was honoured as the Chief Guest for Mauritius’ National Day—a role he last held in 2015—underlining the close personal and political ties between the two nations.

The two prime ministers concluded their dialogue with a shared commitment to exploring new areas of cooperation based on Mauritius’ national priorities and India’s development capabilities.

Source: Business Standard

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