Mauritius is a beautiful island nestled in the southeast of Africa. It has recently gained attention due to the first session of the India-Mauritius High Powered Joint Trade Committee held under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). This agreement works towards encouraging and improving trade between India and Mauritius through an institutional mechanism.
Outcomes from the CECPA Session
Beneficial outcomes arisen from the session include a surge in the bilateral merchandise trade from $690.02 million in 2019-20 to $786.72 million in 2021-22, which was agreed upon by both parties to further improve the bilateral relationship, especially under CECPA.
Inclusions in CECPA
The General Economic Cooperation (GEC) Chapter and Automatic Trigger Safeguard Mechanism (ATSM) have been included in the CECPA. The GEC chapter focuses on enhancing export competitiveness and enlarging collaboration scope in various fields such as investments, financial services, textiles, SMEs, handicrafts, gems, and jewellery. The ATSM serves to safeguard the country from excessive imports. If product imports rise dramatically, safeguard duties can be imposed on imports from Mauritius or vice versa.
Shortage of Skilled Professionals
Both sides held discussions on establishing equivalence in certification, skills, and licensing requirements of various professional bodies. Notably, there is a shortage of professionals in Mauritius in numerous sectors including ICT, financial services, film production, engineering, and health. Hence, Mauritius has welcomed high-skilled professionals from India.
About India – Mauritius CECPA
India-Mauritius CECPA is a limited agreement covering selected sectors which provide an institutional mechanism to foster trade between the two countries. It opens opportunities in market access at concessional customs duties for over 300 domestic goods from India and gives preferential market access to Mauritius for its 615 products.
India’s Economic Relations with Mauritius
In May 2016, India extended a grant of $353 million for executing five priority projects identified by Mauritius including Metro Express Project, Supreme Court Building, New ENT Hospital, Digital Tablets supply to Primary School Children and a Social Housing Project.
Mutual Projects and Foreign Direct Investment
Other collaborations between India and Mauritius include the construction of a civil service college financed through a grant of $4.74 million, and an 8 MW Solar PV Farm electrifying approximately 10,000 Mauritian households. In 2021-22, Mauritius became the third top source of Foreign Direct Investment into India, accounting for 15.98%.
Recent Defense Developments
Recent developments encompass the signing of a $100 million Defense Line of Credit agreement, and the export contract of an Advanced Light Helicopter Mk III to be used by the Mauritius Police Force.
Humanitarian Aid and Political Support
India has extended support to Mauritius during the pandemic by delivering 1,00,000 Covishield vaccines. Additionally, on political grounds, India voted in favour of the Mauritian standpoint on the Chagos Archipelago dispute at the UN General Assembly in 2019.
Mission Sagar and India’s Engagement with Mauritius
Mission Sagar is an Indian initiative to provide Covid-19 aid to Indian Ocean countries, indicating India’s growing engagement within the regional framework. However, given the historical ties dating back to colonial times and recent special partnerships, India must not take its influence in Mauritius for granted. A proactive approach is necessary in bringing together like-minded partners. As part of its Neighbourhood First policy, India should continue enhancing its engagement with Mauritius, a significant island country in the south western Indian Ocean.
