Mauritius is seeking amendments to its trade agreements with India, particularly the DTAC, to restore its investment status. Minister Dhananjay Ramful noted ongoing discussions on specific unresolved issues. Despite a decline in FDI since 2016, Mauritius remains a key source for India and aims for greater investment parity with Singapore. The island nation is promoting itself as a gateway for Indian investments in Africa.
Mauritius is actively seeking amendments to its trade agreement with India, particularly the Double Taxation Avoidance Convention (DTAC), as stated by Foreign and Trade Minister Dhananjay Ramful. In a recent interview, he highlighted the necessity of revisiting the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to restore Mauritius as a preferred conduit for foreign direct investment (FDI) to India, noting a significant decline in FDI inflows since the 2016 treaty revision.
The minister indicated that discussions regarding the DTAC amendment are ongoing, emphasizing that two specific issues require resolution before the protocol can be finalized. A second session of the joint committee is set to convene soon to address both the CECPA and DTAC, with the objective of tackling trade imbalances and taxation challenges.
Since 2000, Mauritius has directed a cumulative total of $175 billion in FDI into India, representing 25% of the nation’s overall FDI inflows. However, following the introduction of tax avoidance measures in the 2016 amendment, FDI from Mauritius plummeted from $15.72 billion in the fiscal year 2016-17 to $6.13 billion in 2022-23. Nonetheless, it remains India’s third-largest source of FDI in the fiscal year 2022-23, recently rebounding to $7.97 billion in 2023-24, making it the second-largest source after Singapore.
Ramful also stressed the importance of ensuring parity with Singapore, expressing Mauritius’ desire for comparable or enhanced consideration relative to Singapore’s advantages. He is determined to reaffirm Mauritius as a premier investment hub.
Moreover, Ramful underscored Mauritius’ potential as a strategic gateway for Indian investors targeting the African market. He mentioned that Indian companies have invested over $200 million in Mauritius over the past five years and expressed optimism about increased investment opportunities through improved bilateral frameworks.
Additionally, Indian High Commissioner to Mauritius, Anurag Srivastava, indicated that significant agreements are likely to be signed between India and Mauritius during Prime Minister Narendra Modi’s upcoming state visit in March, aimed at strengthening economic relations.
Mauritius is actively pursuing amendments to its trade agreement with India, particularly the DTAC, reflecting its intention to restore its status as a preferred investment conduit. While FDI inflows have experienced significant fluctuations post-2016, Mauritius remains a substantial source of FDI into India. Enhancing cooperation and addressing existing trade imbalances are pivotal steps toward re-establishing Mauritius’ competitive edge in the region.
Original Source: www.business-standard.com
