In News:

• India and Mauritius share a unique relationship anchored in history, culture, and strategic convergence in the Indian Ocean Region (IOR). The visit of Mauritius Prime Minister Navinchandra Ramgoolam to Varanasi in 2025 marked a new milestone, with India announcing a USD 680 million Special Economic Package.
• The package seeks to strengthen bilateral cooperation in infrastructure, defence, maritime security, and cultural ties, while reinforcing India’s role as a key development and security partner in the region.

Key Features of the Special Economic Package (2025)

• Infrastructure Development: At least 10 projects, including completion of the new Air Traffic Control (ATC) tower at SSR International Airport, expansion of highways and ring roads, and the development of Motorway M4.
• Healthcare & Education: Establishment of new schools and hospitals.
• Maritime Cooperation: Redevelopment of Port Louis into a stronger maritime hub, and agreements on hydrography for joint surveys and navigation charts of Mauritius’ Exclusive Economic Zone (EEZ).
• Chagos Archipelago Engagement: In-principle agreement for joint surveillance of the Chagos Marine Protected Area, where the Diego Garcia base (operated by the US-UK) is located. India strongly backed Mauritius’ sovereignty claims, consistent with its support for decolonisation.
• Trade Facilitation: Bilateral trade in local currencies to be enabled, following the launch of UPI and RuPay cards in Mauritius.
• Security Partnership: India reaffirmed its role as Mauritius’ “first responder” and “net security provider” in the Indian Ocean, providing hydrographic support, refitting Mauritius Coast Guard ships, and training personnel.

Historical and Cultural Ties

• Migration: Indian migration to Mauritius began under French rule (1700s) and intensified during British rule post-1834, when nearly 500,000 indentured labourers arrived, most of whom settled permanently.
• Demographics: Today, about 70% of Mauritius’s population (1.2 million) is of Indian origin, strengthening cultural and familial bonds.
• National Day: Mauritius celebrates its National Day on March 12, coinciding with Mahatma Gandhi’s Dandi March, reflecting its deep-rooted civilizational connect with India.

Economic and Commercial Relations

• Trade: In FY 2022–23, bilateral trade stood at USD 554.19 million, with Indian exports at USD 462.69 million.
• FDI: Mauritius remains a significant investor in India—second-largest source of FDI (FY 2023–24) after Singapore.
• CECPA (2021): The Comprehensive Economic Cooperation and Partnership Agreement was India’s first trade agreement with an African country, expanding market access in goods, services, and investment.
• DTAA (1982): While the Double Taxation Avoidance Agreement facilitated investments, it also raised concerns of misuse for money laundering and round-tripping.

Defence and Security Cooperation

• India is Mauritius’ preferred defence partner, supplying platforms like Dornier aircraft and Advanced Light Helicopters (Dhruv), along with a USD 100 million Line of Credit for defence procurement.
• Joint patrolling, hydrographic surveys, and capacity building highlight the depth of security ties.
• The Agaléga Island Projects (airstrip and jetty, inaugurated in 2024) enhance maritime domain awareness and India’s strategic reach in the southwest Indian Ocean.

Strategic Significance of Mauritius for India

• Geopolitical Location: Mauritius, located 800 km east of Madagascar, is a crucial node for maritime security and trade in the Indian Ocean.
• Countering China: China’s growing influence, marked by its 2021 FTA with Mauritius under the Belt and Road Initiative (BRI), necessitates stronger India–Mauritius collaboration.
• Blue Economy: Mauritius’ EEZ expansion (post-treaty with the UK over Chagos) provides new opportunities in fisheries, offshore energy, and maritime resources, where India is a preferred partner.
• Regional Cooperation: Mauritius is active in the Indian Ocean Rim Association (IORA), aligning with India’s SAGAR vision—“Security and Growth for All in the Region”—and Vision MAHASAGAR.