India's Economic Package for Mauritius
India has pledged a significant $680 million economic package to Mauritius, which includes $25 million in budgetary assistance for the fiscal year 2025-26. This initiative is part of India's strategy to maintain its influence in the Indian Ocean Region (IOR), especially in light of increasing Chinese activity.
Bilateral Trade and Economic Cooperation
- Both countries are working towards enabling bilateral trade in local currencies following the successful launch of UPI and RuPay cards in Mauritius.
Maritime Security and Defence
- India is committed to protecting Mauritius's Exclusive Economic Zone (EEZ) in the Indian Ocean.
- The assistance package includes support for the development and surveillance of the Chagos Archipelago, a marine protected area.
Mauritius as a Strategic Partner
- Mauritius offers preferential access to African markets, being a member of the African Union, SADC, and Comesa.
- The Mauritian PM invited Indian businesses to leverage these agreements for mutual benefits.
Agreements and Cooperation
- Seven agreements were signed to enhance bilateral ties during the Mauritian PM's state visit to India.
Chagos Agreement
- The UK recently ceded sovereignty of the Chagos Islands to Mauritius, with India supporting this decolonization effort.
- Mauritius now requires assistance in patrolling its expanded EEZ, preferring support from India over the UK.
