India and Mauritius are poised to begin trading in their national currencies, a move announced by Prime Minister Narendra Modi as a significant step towards strengthening financial and economic ties between the two nations. This decision, revealed during Mauritian Prime Minister Navinchandra Ramgoolam's official visit to India, builds upon the prior launch of UPI and RuPay card services in Mauritius, further facilitating transactions for businesses and citizens.

Speaking in Varanasi, Prime Minister Modi emphasized that enabling trade in local currencies would support smoother bilateral trade flows. He highlighted the deep-rooted cultural and civilizational bonds between India and Mauritius, describing their relationship as "not just a formal meeting but a spiritual meeting," and affirming that they are "not just partners but one family".

In addition to the currency initiative, India has pledged a special economic package of $680 million to Mauritius, demonstrating its commitment to the island nation's growth and security. This package will fund key projects across various sectors, including:

• Healthcare: Construction of a new 500-bed Sir Seewoosagur Ramgoolam National Hospital and the establishment of an AYUSH Centre of Excellence.
• Infrastructure: Completion of a new air traffic control tower at SSR International Airport, expansion of Motorway M4, development of Ring Road Phase II, and acquisition of modern port equipment.
• Veterinary Services: Establishment of a Veterinary School and Animal Hospital.
• Maritime Security: Collaboration on the redevelopment and restructuring of Mauritius' port facilities.

The economic package includes direct grants worth approximately $215 million, with the remaining projects undertaken on a grant-cum-Line of Credit basis. Furthermore, India will extend budgetary support of $25 million to Port Louis for the current financial year.

Both countries have also agreed to advance infrastructure projects such as the Chagos Marine Protected Area. India will provide 100 electric buses to Mauritius, with 10 already delivered, and assist in establishing a 17.5 MW floating solar power plant at Tamarind Falls, reinforcing their commitment to renewable energy.

Prime Minister Modi congratulated Mauritius on the conclusion of the Chagos agreement, calling it a "historic victory" for the country's sovereignty. In May 2025, the United Kingdom agreed to return sovereignty of the Chagos Islands to Mauritius, ensuring Mauritius's sovereignty while the UK continues to manage security at Diego Garcia.

The strengthened partnership also encompasses education, research, and skill-building initiatives. Over 5,000 Mauritians have already received training in India, and 500 civil servants are currently undergoing courses in Mussoorie. A new Directorate of Science and Technology will be established in Mauritius, and IIT Madras and the Indian Institute of Plantation Management have signed agreements with the University of Mauritius to boost research and innovation.

These collaborations signify a deepening of the "Enhanced Strategic Partnership" between India and Mauritius, reinforcing their shared vision for a free, open, stable, and prosperous Indian Ocean region. India's commitment extends to strengthening the security of Mauritius's exclusive economic zone, ensuring a secure and thriving maritime environment for both nations.