India and Mauritius have signed a $100 million Defence Line of the Credit Agreement. The agreement has been signed during the 2-day visit of External Affairs Minister S. Jaishankar to Mauritius.
Key Points
- This agreement was a part of several understandings, including the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) that was signed between the two countries.
- It is the first such free trade agreement (FTA) or CECPA of India with any African country.
- This agreement will help to focus on post-pandemic economic recovery.
- Using the new framework under the CECPA, India, and Mauritius would provide preferential access to a number of items like medicine, surgical equipment, and textile products that would cater to market requirements on both sides.
- Due to this agreement, Mauritius will get preferential access for the export of 40,000 tonnes of sugar into India at an early time frame.
- The $100 million Defence Line of Credit for Mauritius would enable the procurement of defence assets from India.
Both countries also discussed the Chagos Archipelago dispute, which was an issue of sovereignty and sustainable development before the United Nations. In the year 2019, India voted in support of the Mauritian position on the issue at the U.N. General Assembly. India was one of the 116 countries that voted demanding that the colonial administration of the UK should end from the group of islands.