India significantly impacted by punitive tariffs, says Mauritius PM Ramgoolam

Mumbai, Sep 10 (PTI) India is being significantly impacted by punitive tariffs and trade war, Mauritius Prime Minister Navinchandra Ramgoolam said on Wednesday, while emphasising that the rise in protectionist policies, escalating tensions among major economies and climate-related shocks are compounding the exposure to multiple risks.

Addressing the Mauritius-India Business Conclave, organised here by FICCI along with other industry bodies and the Ministry of External Affairs, Ramgoolam also said that India has been and remains a time-tested and trusted partner of Mauritius in its socio-economic development and has steadfastly supported it at all times.

"The global economic order is in a state of chaotic instability and unpredictability. The rise in protectionist policies, escalating tensions among major economies, persistent supply chain disruptions, escalating freight costs and climate-related shocks are compounding our exposure to multiple risks," he said.

Stating that India is being significantly impacted by punitive tariffs and trade war, the Mauritian Prime Minister said, "We are unfortunately living in an era where predictability is becoming unpredictable and certainty is becoming uncertain." "Circumstances are compelling us to embrace uncertainty and to best manage it by strong and reliable partnership between our two countries," he said.

India has been and remains a time-tested and trusted partner of Mauritius in its socio-economic development since the time of our independence and it has steadfastly supported Mauritius at all times, Ramgoolam said.

Noting that India is among Mauritius' top trading partners and its third source of imports, he said his country's commercial ties with India are "flourishing, grounded in trust, friendship and mutual respect." "Since the entry into force of the Cooperative Economic Cooperation and Partnership Agreement (CECPA), our trade figures reflect a clear trajectory of success, but the full potential is yet to be realized," he said.

He said that Mauritius was looking forward to the second session of the high-powered joint trade committee and CECPA to be held in Mauritius. He said that bilateral trade between India and Mauritius has grown to some USD 800 million, more than 6,000 crore, in 2024 with trade being highly in favour of India.

"Mauritius exports to India currently average USD 50 million per year and we're hoping to increase this to USD 100 million in the coming years through the CECPA. One way for Mauritius to lower this huge trade imbalance is to export our financial services to India and to attract more Indian tourists to visit our country, and also to encourage trilateral cooperation between India, Africa and Mauritius," Ramgoolam said.

Ramgoolam highlighted historic milestones such as the Double Taxation Avoidance Agreement (DTAA) and the Comprehensive Economic Cooperation and Partnership Agreement (CECPA), describing them as "game-changers" that provide clarity, predictability, and stability to businesses and investment flows.

The Prime Minister emphasised the country's preferential access to regional markets such as the African Continental Free Trade Area (AfCFTA), Southern African Development Community (SADC), and Common Market for Eastern and Southern Africa (COMESA) and spoke about how positioning Mauritius as a bridge between Asia and Africa offers Indian businesses a secure and competitive entry point into Africa.

The Mauritius Prime Minister also noted his country is not only an island nation in the Indian Ocean but also a custodian of a vast maritime zone spanning 2.3 million square kilometres, which anchors its growing role in the ocean economy and marine trade.

Inviting the priority sector for collaboration and Indian businesses to explore opportunities in the blue economy, including aquaculture and marine infrastructure, Ramgoolam highlighted the healthcare and medical tourism sectors, renewable energy, with Mauritius targeting 60 per cent of its energy generation from renewables.

"The gateway is open, the platform is secure, the time is now," said the Prime Minister, reaffirming Mauritius' readiness to serve as a reliable and competitive partner for Indian business.

Union Minister Manohar Lal said that the India-Mauritius relationship is unique, is rooted in the journey of Indian industries, investment and innovation.

"The CECPA, which entered into force in April 2021, is a historic milestone. It is India's first free trade agreement with an African nation and the first such agreement we signed in the decade. CCPA is already creating new pathways for trade and investment," he said.

Stating that India has offered preferential access to Mauritius and Mauritius has reciprocated with similar access, he said both sides are working regularly to increase the basket.

"Today, India remains among Mauritius' top three trade partners, while Mauritius is consistently one of the largest sources of foreign direct investment into India. This two-way flow of capital, goods and services reflects the trust and confidence our economies inspire in each other," he said.

He also said that Mauritius is more than just a partner. "Its strategic fulcrum stands at the centre of three defining pillars of India's foreign policy--our Neighbourhood First Policy, Vision Mahasagar for the Indian Ocean and our unwavering commitment to the Global South. This unique positioning makes our partnership not only natural but also insatiable in the current global landscape." PTI IAS MR MR