India, Mauritius agree to facilitate trade settlements in local currencies

Prime Minister Narendra Modi and his Mauritius counterpart Navinchandra Ramgoolam have agreed to facilitate trade settlements in local currencies, viz Indian Rupee and Mauritian Rupee.

The two leaders also agreed to hold the second session of the High Power Joint Trade Committee under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to further strengthen trade, economic cooperation and partnership between the two nations.

Navinchandra Ramgoolam and PM Modi held "comprehensive and productive discussions" on the entire gamut of bilateral relations during the latter's State Visit to Mauritius from March 11-12.

During the meeting held on March 11, the two leaders reaffirmed that Mauritius and India share a "special and unique relationship" that is unparalleled, given the shared bonds of history, language, culture, heritage, kinship, and values.

The 'India-Mauritius Joint Vision for an Enhanced Strategic Partnership' released by the Prime Minister's Office stated, "Reiterating their firm commitment to diversify the trade and commercial linkages between the two countries, the leaders agreed to: Hold the second session of High Power Joint Trade Committee under CECPA to further strengthen trade, economic cooperation and partnership between the two countries."

"Facilitate trade settlements in local currencies, viz Indian Rupee and Mauritian Rupee, which will work towards derisking bilateral trade, pursuant to signing of an MoU on Local currency Settlement by the partner Central Banks," it added.

PM Modi and Navinchandra Ramgoolam agreed to ratify the Protocol on Amendment of Double Taxation Avoidance Agreement at the earliest to harmonise with International Standards on treaty abuse, after ongoing discussions are concluded.

The two leaders agreed to promote investments in sunrise sectors like ocean economy, pharmaceuticals, IT and Fintech, among others, to support Mauritius in diversification of its economy for the long term and sustainable economic growth.

India-Mauritius Joint Vision for an Enhanced Strategic Partnership stated, "Acknowledging that the conclusion of the Comprehensive Economic Cooperation and Partnership Agreement (CECPA), India's first ever trade agreement with a country in African region, marked a major milestone in the economic and trade relations of both countries, the leaders underscored the need for exploiting the full potential of bilateral trade for the shared objective of economic growth and prosperity of Mauritius and India."

"Highlighting Mauritius's locational advantage and cultural linkages, inter-alia, with Africa its being part of African Continental Free Trade Area (AfCFTA), The Prime Minister of Mauritius underlined the need for Indian companies and businesses to see Mauritius as a gateway to India's engagements with Africa and benefit from trade and business opportunities offered by Africa," it added.

The two leaders noted that India has been the leading development partner for Mauritius since its independence and has contributed significantly towards its infrastructure and developmental needs.

"Highlighting India's support in successfully implementing several high profile infrastructure projects, such as India-Mauritius Metro Express Project, New Supreme Court Building, New ENT Hospital, 956 Social Housing Units, and Educational Tablets, among others, the Prime Minister of Mauritius expressed gratitude for India-aided projects that form part of the Mauritian landscape across various sectors and have benefited all sections of Mauritius over the years," the statement read.

The two leaders acknowledged the benefits of the new runway and jetty developed with Indian assistance at Agalega and its critical role towards provisioning of emergency humanitarian assistance in the aftermath of the recent Cyclone Chido for the people of Mauritius in Agalega.

Ramgoolam thanked the Indian government for its timely and swift assistance, including the deployment of transport aircraft and ships, to aid the efforts of the Mauritius government towards rehabilitation, thereby reaffirming India's role as a 'First Responder' for Mauritius in times of need.

Mauritius PM welcomed PM Modi's assistance in the development of Agalega for the welfare and benefit of its inhabitants. Both leaders underscored the significance of ongoing infrastructure projects like Renal Transplant Unit, Forensic Science Laboratory, National Archives and Library and Civil Service College, and the High Impact Community Development Projects spread across Mauritius and reiterated their full support towards their timely completion.

The two leaders agreed to work towards timely delivery of 100 electric buses and the associated charging infrastructure, implementing Phase II of High Impact Community Development Projects, according to the statement.

PM Modi and Navinchandra Ramgoolam agreed to initiate implementation of the replacement of 100 km water pipeline in Mauritius under the first INR denominated Line of Credit agreement concluded between the two sides, according to the statement released by Prime Minister's Office.The two leaders agreed to explore new areas of development cooperation according to the needs and priorities of Mauritius government.

Both leaders agreed to finalise discussions on the new Parliament building on a site to be identified by the Mauritius government, and conclude a framework understanding to implement the project with India's grant assistance. The two leaders agreed to finalise discussion on the redevelopment of the Ganga Talao Spiritual Sanctuary and conclude a framework understanding to implement this project with India's grant assistance.

PM Modi was on a two-day State Visit to Mauritius from March 11-12. PM Modi was the Chief Guest at Mauritius' National Day for the second time, an honour he first received in 2015. During his visit, he held meetings with the leaders and interacted with the Indian community in Mauritius.