India-Mauritius Relations
GS-2 Mains : IR
Short Notes or Revision Notes
Question : Discuss the objectives and significance of India’s SAGAR Initiative in the context of maritime security and cooperation in the Indian Ocean region, with a specific focus on its implications for India-Mauritius relations.
Overview
- Close, long-standing relations between India and Mauritius, an island nation in the Indian Ocean.
- Established diplomatic relations in 1948.
- Strong cultural ties: 70% of Mauritius population is of Indian origin.
Commercial Relations
- India is Mauritius’ largest trading partner since 2005.
- Total trade in FY 2022-2023: $554.19 million.
- Significant FDI from Mauritius to India (over $161 billion in 2000-2022).
- Enabled by Double Taxation Avoidance Agreement (DTAC) signed in 1982.
- Comprehensive Economic Cooperation and Partnership Agreement (CECPA) signed in 2021 (India’s first trade agreement with an African country).
Defence Relations
- India is the preferred defence partner for Mauritius.
- Agreements include:
- Transfer of Dornier and Dhruv aircraft on lease.
- $100 million Line of Credit for defence equipment procurement.
SAGAR Initiative
- Security and Growth for All in the Region.
- Maritime initiative for peace, stability, and prosperity in the Indian Ocean region.
Areas of Concern
- Tax Treaty Misuse:Potential misuse of DTAC for money laundering and round-tripping of funds.
- Security Concerns:Evolving regional dynamics challenge India-Mauritius defence partnership.
- Economic Challenges:Trade imbalance and need for trade basket diversification.
- China’s Presence:China’s growing influence in Africa and the Indian Ocean through trade agreements (e.g., FTA with Mauritius in 2021).
Way Ahead
- Continued collaboration in various fields: infrastructure, FinTech, culture, etc.
- India must strengthen its engagement with Mauritius to counter China’s influence.