Business exchanges reinvigorate rich tapestry of Indo-Mauritian ties

The relations between Mauritius and India, rooted in shared historical and cultural bonds, date back to the 1820s, when Indian workers started coming to Mauritius to work in the sugar cane plantations. These have over the years strengthened into bilateral ties and grown to encompass a wide array of cooperative spheres.

India’s partnership with Mauritius today extends to every aspect of governance – be it political, economic, social, cultural or educational. From the private sector, Indian companies have a presence in sectors such as tourism & hospitality, healthcare, agro-processing, pharmaceuticals, infrastructure, manufacturing, wind and solar power and education.

As India gears up to celebrate its 67^th Independence Day on August 15, the High Commissioner of India, T.P. Seetharam, highlights that relations between the two nations are comprehensive and multi-faceted and that India continues to be a privileged partner in the overall economic development of Mauritius.

“Mauritius is a democratic, forward looking and progressive investor-friendly country and offers unique opportunities to Indian businesses. It is also an ideal trade hub to act as a commercial nerve-centre in the heart of the Indian Ocean region,” he states.

Unique opportunities for Indian businesses

Several Indian enterprises that grasped this notion early on are now making a significant contribution to the Mauritian economy. Indeed, the island was the first chosen location for the international diversification of Fortis Healthcare, through a partnership with the CIEL group (via subsidiary Novelife Limited) to jointly acquire a controlling stake in Clinique Darné in 2009.

According to Fortis Clinique Darné’s Chief Operating Officer Simmardeep Gill, investors feel at ease in Mauritius thanks to the investment protection framework, support structures, cultural diversity and stable political, economic and legal environments.

“Over the years, Mauritius has reviewed its trading barriers and we should be proud that these measures have incentivised BPO and healthcare players to set up camp on the island. However, we cannot forget that labour cost is much dearer in Mauritius in comparison to India, translating into a costly barrier to entry for many Indian companies. Any company setting up in a foreign country should feel that the environment is more favourable. Moreover, the Mauritian consumer market is significantly smaller, making it unattractive for certain investors. Looking at improving the infrastructure further with regards to ICT and paying close attention to the individual needs of specific countries would help further,” highlights Simmardeep Gill.

He further states that another way to boost trade, investments from India as well as joint India-Mauritius investments into the region would be through the creation of more joint platforms to showcase the core competencies of Mauritius to Indian investors.

High-level visits have also been one of the significant aspects of the bilateral relations linking the two countries. Ranjan Mohapatra, Managing Director of IndianOil (Mauritius) Ltd, views this as a reinforcement of the Indo-Mauritian cooperation.

“During his recent visit to the island, the President of India, Pranab Mukherjee, said that Mauritius will remain a steadfast partner as the two nations advocate a rule-based architecture of global governance that will be a safeguard against challenges. If recent visits of dignitaries from India to Mauritius and vice-versa are any indication, I can only say that we are on the right path in fostering this relationship and creating an environment which is mutually highly beneficial,” he states.

Bilateral agreements

Moreover, the ties between the two countries have been further reinforced by a wide range of bilateral agreements over the years. Roshan Lewis, Assistant General Manager of Dr. Agarwal’s Eye Hospital, points out that the Indo-Mauritian business ties are very strong and are evolving phenomenally. “Both countries should focus and cooperate further on matters related to economy and commerce which would result in agreements. There is also the need for more business and trade promotion activities to provide international exposure for both countries,” he comments.

Roshan Lewis also remarks that as per the present policy, Mauritius is one of the easiest and most systematic countries in which to start a business. This can however be fine-tuned by formulating more flexible policies in terms of documentation, formation and human resource capitalisation.

The Indo-Mauritian business relationship is but a part of this enduring and all-encompassing canvas. P.S. Jagannatham, Chief Manager of Life Insurance Corporation of India (LIC) Mauritius Ltd, highlights that the Mauritian branch stands as one of the important extensions of Indo-Mauritian ties into the future.

“It is our firm belief that any business activity which fits into the overall context of Indo-Mauritian relationship and recognises the emerging needs and aspirations of contemporary Mauritius is bound to be successful and mutually beneficial,” he says.

Mahanagar Telephone Mauritius Limited (MTML) came to Mauritius to be a part of the ongoing telecom revolution in the country and aims to use the experience for forays into African markets. MTML Chief Executive Officer Sanjay Garg finds the business environment on the island truly conducive. “Relations of India and Mauritius go beyond just business. The people of both these countries are connected to the common root and share cultures, traditions and moral values. The development in ICT sector in general has resulted in bridging the distances and MTML has been able to contribute considerably in achieving this objective in Mauritius. We hope that it will only get better.”