The Indo-Mauritian Relationship : Heavyweight partners gearing up for an increased dynamism

The multi-faceted nature of the Indo-Mauritian ties needs no introduction and covers a wide array of sectors. There exists scope for walking on new developmental paths through innovation while leveraging on the existing successful linkages.

Ancestral, cultural, economic and social: the relationship between India and Mauritius has evolved into a complete bond from the arrival of Indian indentured labourers in Mauritius during the 1820s to the establishment of full diplomatic relationships in 1948 and, more recently, the official visit of Indian Prime Minister Narendra Modi, in March this year.

According to Anup Kumar Mudgal, High Commissioner of India to Mauritius, the two countries share what is rightly characterised as a ‘unique’ relationship, founded on a solid bedrock of shared cultural and historical ties, yet dynamic and ever evolving. The multifaceted partnership covers every aspect of governance and socio-economic development – ranging from regular high-level political interaction, trade and investment, defence & security, science and technology, capacity building, education, health, and vibrant people-to-people exchanges.

“In recent times, we have expanded our collaboration into several new and innovative areas, including Ocean Economy, Smart Cities and ICT, renewable energy, e-governance, traditional systems of medicine (AYUSH), electoral management, and public broadcasting and film/television production,” states Anup Kumar Mudgal.

This multi-faceted partnership translates well into figures. In the last financial year 2014-2015, Indian exports to Mauritius were worth US$ 1.9 billion, and Mauritian exports to India were worth US$ 21.19 million, making India the largest trading partner. Exports to Mauritius comprise largely petroleum products, and India is committed to remaining a reliable supplier of petroleum products to Mauritius. India also exports pharmaceuticals, cereals, cotton, electrical machinery, apparel and clothing accessories to Mauritius. The main items of Mauritius’ exports to India include iron and steel products, pearls, precious/semi-precious stones and optical, photographic and precision instruments.

In terms of Foreign Direct Investment (FDI), inflows from Mauritius to India during the period April 2000 - March 2015 amounted to USD 87.55 billion (35% of total FDI inflows over this period). Mauritius was the single largest source of FDI into India during the financial year 2014-15, with FDI equity inflows amounting to USD 9.03 billion - 29% of total inflows in 2014-15.

“Mauritius & India share the same umbilical cord,” says Ranjan Kumar Mohapatra, Managing Director of IndianOil (Mauritius) Ltd. “The relationship has always been extremely warm and cordial. It has been my observation in my last three and half years here that the leaderships on both sides have always been very responsive to each other’s viewpoints and have been more than willing to work out a win-win situation. Like in any mature relationships, differences are bound to appear. But it is more important as to how these differences are being addressed. This is where I feel that we do have an extremely strong bonding,” he points out.

Towards a higher level of partnership

For Unnati Negi, Chief Operating Officer (COO) of Fortis Clinique Darné, the historical and cultural bond between the two countries (most of the Mauritian people being of Indian descent) has stood the test of time. Mauritius has been maintaining close links with India for the past half century and both Indians and Mauritians experience these privileged relations in everyday life with their share of emotions. Through the highs and lows, governments from both sides have nurtured bilateral relations to cover a vast array of socio-economic and cultural spheres.

“Mauritius needs to continue to diversify its economic base by actively promoting emerging sectors. Working closely with the bodies/forums already in place, the two countries can identify priority sectors together. Opportunities are still available in pharmaceuticals and health and life sciences, for example. Fortis Clinique Darné is already working on specific areas, for instance cardiac science (such as paediatric cardiac surgery, electrophysiology and spinal surgeries) to help improve the standard of care in Mauritius and looks forward to an even closer partnership for a healthier future for all Mauritians”, she notes.

Ranjan Kumar Mohapatra shares this view as well. Although the current partnership is extremely mature and strong, there is always a scope for further improvement in any relationship. “It is very heartening to observe that both governments are fully aware of it and have been leaving no scope to ensure that it goes to a higher level. The visit of PM Modi was a big manifestation of the value and importance India accords to Mauritius as its own, and no doubt heralded a new chapter in Indo-Mauritian relationship,” he observes. Indeed, the protocols signed and the confidence exuberated are some of the indicators of increased economic partnerships between both countries. It is however at this stage too early to say if investors have taken advantage of it or not, highlights Ranjan Kumar Mohapatra. “As such, with the ongoing global meltdown with China going down so heavily, investors have to be extra cautious and rightfully so,” he cautions.

In the meanwhile, Mauritius can work on upping its value proposition for its Indian counterpart to further consolidate economic linkages in particular. In Unnati Negi’s opinion, Mauritius needs to continue to diversify its economic base by actively promoting emerging sectors. Working closely with the bodies/forums already in place, Mauritius and India can identify priority sectors together. Opportunities are available in pharmaceuticals, and health and life sciences, for example.

Numerous opportunities to be explored

“Mauritius has removed significant foreign investment barriers by lowering taxes, simplifying administrative procedures, keeping interest rates low, investing in education and training, and by lowering trade barriers and maintaining the preferential access on the main markets. The fact that the government has VAT exemption on medical equipment made a lot of sense to us being in the healthcare business to come over here. Furthermore, offering a business-friendly platform, a foreign investor can settle hassle-free in Mauritius and be operational in just 3 days,” approves the COO.

Mauritius has always been a highly dependable ally of India, both politically and strategically, affirms Ranjan Kumar Mohapatra. Taking advantage of its democratic status and its economic environment, which make it the best country to do business in sub-Saharan Africa, Mauritius can further position itself as the gateway to Africa. “Economists around the globe put Africa as the next Big Thing. And India is already on a big developmental path. Hence, it would be an apt opportunity for both countries to explore the same. This is notwithstanding the fact that both countries do need to build upon the existing economic platforms as well. Personally, I am very glad that visible action in this direction is already showing up,” he adds.

At the same time, the two countries have also got to accept their limitations. Hence, instead of going for new sectors, efforts must be made to boost the exis-ting sectors through innovation. Ranjan Kumar Mohapatra especially appreciates the importance the Ocean Economy is receiving now. “We are now fully aware of the fact that we are yet to exploit the full power of Ocean Economy and we also have realized that our focus on this has the potential to take us to a different level. A small word of advice would be to ‘Attach Urgency’. We got to move fast and positively,” he urges.

Unnati Negi is on the same wavelength too. Heads of State of both countries visit each other on a regular basis and Indian Prime Minister Narendra Modi’s early visit this year demonstrates India’s strong commitment to further strengthening the relationship and cooperating with Mauritius in a range of sectors such as trade and investment, education, health, ICT, renewable energy, defense and maritime security. “However, numerous opportunities such as clinical research and trials biotechnology, etc. can still be explored to diversify the existing bilateral agreements and MoUs”, she concludes.