India-Mauritius Relations- Explained Pointwise

Prime Minister Narendra Modi’s forthcoming visit to Mauritius on March 11-12, 2025, to attend the country’s Independence Day celebrations, underscores the deep and enduring ties between the two nations. With a new government led by Navinchandra Ramgoolam in power, this visit offers an opportunity to reaffirm and deepen the strategic partnership, ensuring it remains a cornerstone of India’s foreign policy in the Indian Ocean Region (IOR). India-Mauritius Relations

What is the historical evolution of India-Mauritius Relations?

India and Mauritius share an umbilical relationship, deeply rooted in history, demography, and culture. With nearly 70% of Mauritius’ 1.2 million population of Indian origin, the bond extends beyond diplomacy to people-to-people and civilizational ties. India has been among the largest trading partners of Mauritius since 2005, and the relationship has evolved into a robust partnership spanning multiple areas.

What is the significance of Mauritius for India?

1. Geo-Economic Significance: 

• Mauritius as India’s FDI Hub: Mauritius has been a major source of Foreign Direct Investment (FDI) into India, which contributed $175 billion since 2000 under the Double Taxation Avoidance Convention (DTAC). This  bilateral trade has grown from $206 million (2005) to $851 million (2023-24).
• Economic Gateway to Africa: Mauritius’ bilingual population (English & French) and strong financial sector make it a bridge for Indian businesses entering Francophone Africa.

2. Geo-Political Significance: 

• Regional Cooperation: Mauritius is a key partner in India’s Indo-Pacific strategy and IORA (Indian Ocean Rim Association) which makes it central to the diplomatic engagement in the Indian ocean countries.
• Support for Mauritius Sovereignty: India supports Mauritius’ sovereignty claim over the Chagos Islands, in line with its principled stand on decolonization and support for the sovereignty and territorial integrity of nations, as well as its longstanding and close partnership with Mauritius

3. Security & Strategic Significance: 

• Indian Ocean Security: The two countries have strong maritime security cooperation, given Mauritius’ strategic location in the Indian Ocean. It’s strategic location is very significant  for India’s SAGAR (Security and Growth for All in the Region) initiative.
• Countering China’s Influence: India’s strengthening defense cooperation with Mauritius is indeed seen as a strategic move to counter China’s growing influence in the Indian Ocean Region (IOR).
• Maritime Surveillance & Intelligence Sharing: To enhance maritime surveillance and intelligence sharing, India has established a coastal radar chain in Mauritius and upgraded facilities on Agaléga Island for joint surveillance purposes. Furthermore, Mauritius has joined the Information Fusion Centre – Indian Ocean Region (IFC-IOR) located in Gurugram.
• Regional Security Cooperation: Mauritius actively participates in the Colombo Security Conclave, collaborating with India, Sri Lanka, Maldives, and Bangladesh to address shared regional security concerns, including maritime security, counter-terrorism, and disaster management. This engagement underscores Mauritius’s commitment to collective security in the IOR.

4. Indian Diaspora & Cultural Significance: 

• Historical & Cultural Ties: With nearly 70% of its population of Indian origin, Mauritius shares deep historical and cultural ties with India..
• Diaspora Benefits: The extension of Overseas Citizenship of India (OCI) privileges to Mauritians with Indian ancestry traceable up to the 7th generation significantly strengthens the enduring bond between the two nations, fostering deeper people-to-people ties and facilitating cultural and economic exchange through the diaspora.
• Education & People-to-People Ties:Through initiatives like ITEC and ICCR scholarships, as well as the Know India Programme (KIP), India actively engages Mauritian youth, fostering educational and training opportunities while connecting them with India’s rich cultural heritage.

What are the areas of cooperation between India and Mauritius?

1. Economic Cooperation

• Trade & Investment: India has been one of Mauritius’ largest trade partners, with exports including petroleum products, pharmaceuticals, textiles, and food items.
• DTAA & CECPA: In order to address concerns regarding tax evasion and Base Erosion and Profit Shifting (BEPS) through Mauritius, India revised the DTAA in 2016 while subsequently, the CECPA in 2021 was implemented to facilitate smoother and more transparent trade and investment flows between the two nations.
• Financial & Business Collaboration: Mauritius has a well-developed banking sector, making it a financial hub destination for Indian businesses, like Mauritius is adopting India’s UPI to make seamless, cashless payments in their country.
• Indian PSUs: Indian companies and PSUs play a crucial role in banking, construction, telecommunications, and energy sectors.

2. Infrastructure & Development Cooperation:  India’s commitment to Mauritius’s development is demonstrated through a Special Economic Package of $353 million, supporting key infrastructure projects like the Metro Express, alongside a $500 million Line of Credit for ten priority initiatives, including the National Archives, Mauritius Police Academy, and the establishment of the first overseas Jan Aushadhi Kendra.

3. Military & Security Cooperation

• Maritime Security: India supplies patrol vessels (CGS Barracuda & CGS Victory) and assists in securing Mauritius’ Exclusive Economic Zone (EEZ). Mauritius participates in India-led VARUNA & MILAN naval drills. Oceanographic surveys through India’s INS Sarvekshak mapped 25,000 sq. km of Mauritius’ oceanic territory.
• Anti-Piracy & Regional Stability: Surveillance & intelligence sharing using coastal radar networks and Agaléga Island surveillance enhance maritime domain awareness.

4. Humanitarian Assistance & Disaster Response

• COVID-19 Assistance: India supplied 1 lakh free Covishield vaccines (2021) and additional doses. Sent 13 tonnes of medicines and an Indian Medical Team (2020).
• Wakashio Oil Spill (2020): India dispatched 30 tonnes of technical equipment, a 10-member response team, and INS Nireekshak for salvage operations.

What are the challenges in India-Mauritius Relations?

1. Declining FDI Inflows from Mauritius: The 2016 amendment of the DTAA reduced the attractiveness of Mauritius as an FDI conduit to India. E.g. FDI from Mauritius declined from $15.72 billion in 2016-17 to $6.13 billion in 2022-23, making Mauritius India’s third-largest FDI source after Singapore and the USA.

2. Trade Imbalance & Limited Diversification: India’s exports to Mauritius are significantly higher than Mauritian exports to India. E.g. In 2023-24, India’s exports to Mauritius were $778 million, while Mauritius’ exports to India were only $73 million, leading to a tenfold trade imbalance.

3. China’s Expanding Influence: China has been increasing its economic and strategic presence in Mauritius, challenging India’s influence. E.g. China built the Mauritius Supreme Court and has provided infrastructure loans, raising concerns over debt dependency.

4. Security Challenges: Maritime Issues & Drug Trafficking: The Indian Ocean Region (IOR) faces growing security concerns, including drug trafficking and illegal fishing. E.g. Mauritius has been a transit hub for drug trafficking networks in the Indian Ocean, which poses a security risk for India’s maritime interests.

5. Slow Execution of Infrastructure Projects: Some India-funded projects in Mauritius have faced delays due to bureaucratic hurdles and implementation issues. E.g. The Metro Express Project, a key initiative under India’s $500 million Line of Credit, faced initial considerable delays.

6. Concerns over Chagos Archipelago & Regional Diplomacy: India initially hesitated to support Mauritius’ claim over the Chagos Archipelago, a British-controlled territory, due to strategic relations with the UK and the US. Mauritius expected stronger Indian diplomatic backing at the International Court of Justice (ICJ), but India maintained a diplomatic cautious stance, which led to some diplomatic friction.

What is the way forward?

1. Maritime Security & Strategic Cooperation: Strengthening maritime domain awareness through coastal radar networks, joint naval exercises, and real-time intelligence sharing. E.g. Similar to the White Shipping Agreement with France, while expanding the Colombo Security Conclave (CSC) to include more IOR nations.

2. Advanced Economic & Trade Partnerships: Revising the DTAA to boost FDI flows, as seen in the India-UAE CEPA, while expanding CECPA to include IT, fintech, and renewable energy, following the India-Singapore CECA model. E.g. Leveraging Mauritius’ SADC, COMESA & AfCFTA trade agreements to access African markets.

3. Unified Diaspora & Cultural Engagement: Strengthening institutions like the Mahatma Gandhi Institute and World Hindi Secretariat, similar to cultural preservation models in Fiji & Trinidad, while engaging the Indian-origin diaspora through business forums, academic exchanges, and Pravasi Bharatiya Divas-style summits.

4. Resilient Diplomatic Relations: Countering China’s expanding influence through infrastructure grants, technology partnerships, and soft power, following India’s successful diplomatic model in the Maldives, while ensuring regular high-level engagements. E.g. Like India-Japan Annual Summit, to maintain long-term trust and collaboration.

5. Innovation-Driven Development & Skill Building: Enhancing youth and skill development programs through educational exchanges, following the India-UAE Skill Development MoU, while promoting fintech and digital payment integration, similar to India’s UPI expansion into foreign markets.

6. Strategic Vision for the Future: Developing a 25-year roadmap for a “New India-Mauritius Partnership,” similar to India-UAE Vision 2030, while integrating successful models like the India-Singapore Smart City Collaboration for Mauritius’ urban development.