Mauritius is advocating for amendments to its trade agreement with India, including the DTAC. The minister highlighted the decline in FDI since 2016 and emphasized the need for revisions to restore Mauritius as a favorable investment conduit. A joint committee will soon address trade and taxation concerns, while the country seeks parity with Singapore and aims to position itself as a gateway for investors targeting Africa.
Mauritius seeks amendments to its trade agreement with India, particularly the Double Taxation Avoidance Convention (DTAC), according to Foreign and Trade Minister Dhananjay Ramful. In a recent interview, he stressed the importance of revisiting the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to revitalize Mauritius’ status as a leading investment conduit, especially amidst a decline in foreign direct investment (FDI) inflows since the treaty was revised in 2016.
Minister Ramful indicated that discussions on the DTAC amendment are ongoing, mentioning that two key issues need resolution before the signing of the protocol can take place. He announced that a second session of the joint committee will occur soon to address the CECPA and DTAC, focusing on rectifying trade imbalances and tax-related concerns.
Since 2000, Mauritius has contributed a remarkable $175 billion in FDI to India, constituting 25% of the nation’s total FDI inflows. Yet, following the 2016 revision, FDI from Mauritius experienced a significant drop from $15.72 billion in 2016-17 to $6.13 billion in 2022-23. Nevertheless, Mauritius retained its position as India’s third-largest FDI source in 2022-23, with a rebound to $7.97 billion in the fiscal year 2023-24. The first quarter of 2024-25 also witnessed inflows reaching $3.21 billion.
Minister Ramful expressed that Mauritius aspires for equal treatment with Singapore, emphasizing the country’s aim to regain its competitive advantage as a premier investment destination. He promoted Mauritius as a strategic gateway for Indian investors looking to access Africa’s extensive consumer base, noting that Indian investments in Mauritius have exceeded $200 million over the past five years.
Anurag Srivastava, the Indian High Commissioner to Mauritius, shared insights during the interview, announcing that significant agreements are anticipated during Prime Minister Narendra Modi’s forthcoming state visit slated for March 11, aimed at enhancing economic relations between the two nations.
In summary, Mauritius is actively pursuing amendments to the DTAC and CECPA with India to enhance its investment appeal and restore its prior status as a significant conduit for FDI. Despite recent declines, Mauritius remains a key player in India’s FDI landscape, seeking to ensure equitable terms with competing nations like Singapore. The upcoming state visit by Prime Minister Modi signals further strengthening of the bilateral ties, particularly in economic sectors.
Original Source: www.business-standard.com
