GP Short Notes # 905, 17 March 2025
What happened?
On 11 and 12 March 2025, India’s Prime Minister Narendra Modi visited Mauritius and met Mauritius’s PM Navinchandra Ramgoolam. Both reaffirmed the deep historical, cultural, and strategic ties between their countries. They committed to transforming their longstanding partnership into a more dynamic Strategic Partnership that spans multiple domains, including political exchanges, economic cooperation, infrastructure development, defense collaboration, space and climate change initiatives, and human resource development.
Multiple agreements were signed during the visit. They include: India’s continued development assistance to Mauritius, expansion of trade under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA), implementation of new infrastructure projects, and enhanced security and maritime collaboration. India also reaffirmed its role as a "First Responder" to Mauritius during crises, particularly in response to natural disasters. The two also discussed Mauritius’s strategic role in India’s Vision SAGAR (Security and Growth for All in the Region).
What is the background?
First, a brief note on India-Mauritius historical ties. It dates back to the 18th century when Indians were brought as artisans under French rule. During British rule, from 1834, Indian indentured laborers arrived to work on sugar plantations, with many settling permanently. Today, nearly 70 per cent of Mauritius’s population is of Indian origin. Mahatma Gandhi’s 1901 visit inspired education, political empowerment, and stronger India-Mauritius people-to-people connections. Mauritius honors Gandhi’s legacy by celebrating its National Day on 12 March commemorating the Dandi March. India established diplomatic ties with Mauritius in 1948, before Mauritius became an independent state. A major turning point in the relations came in 1983 when Indira Gandhi’s govt planned military intervention under Operation Lal Dora to prevent a feared coup at the behest of Mauritius PM Anerood Jugnauth, allowing Mauritius to stay in India's security orbit. Since then, India has been Mauritius’s most important foreign partner aiding each other with trade, investments and security cooperation. India has been a key development partner for Mauritius since its independence in 1968, providing significant financial aid and technical expertise in building infrastructure, education, healthcare, and public administration.
Second, recent developments. During the recent years, New Delhi has deepened its relationship. Major Indian-assisted projects include the Metro Express, Supreme Court Building, 100-bed ENT Hospital, and social housing units. More recently, India also helped Mauritius in disaster relief and humanitarian efforts during Cyclone Chido in December 2024, allowing India to take on the ‘First Responder’ role to Mauritius. The two countries signed CECPA in 2021, India’s first trade agreement with an African country, aiming to boost trade and investment.
Third, Mauritius’s response. Mauritius has played an important role in India’s economic and strategic interests, serving as a gateway for Indian businesses into Africa through the African Continental Free Trade Area (AfCFTA) giving way to 1.3 billion consumers in Africa. Since 2000, Mauritius has contributed USD 175 billion in FDI to India, accounting for 25 per cent of total inflows. Mauritius is also a critical partner in India's maritime security initiatives in the Indian Ocean Region, engaging in intelligence-sharing and joint defense collaborations.
What does it mean?
First, the enhancement of CECPA and the push for trade settlements in local currencies is a move toward reducing dependency on foreign exchange volatility and strengthening economic ties. The CECPA between India and Mauritius covers 310 export items for India, Mauritius will benefit from preferential market access into India for its 615 products. Mauritius’s appeal as a trade gateway to Africa is expected to encourage more Indian investments in key sectors such as fintech, pharmaceuticals, and the ocean economy. The commitment to new infrastructure projects will also create job opportunities and economic growth.
Second, by deepening its strategic partnership with Mauritius, India solidified its influence in the Indian Ocean Region, countering China's growing presence; a greater emphasis was given to a “free, open and secure Indian Ocean”. The agreement reinforces maritime security cooperation and positions Mauritius as a key player in India’s regional security framework. The development of a new runway and jetty in Agalega, with Indian assistance, is an example of the growing defense collaboration.