India has pledged a substantial USD 680 million (MUR 30 billion) special economic package to Mauritius, signaling a deepening of the relationship between the two nations. The announcement was made during the state visit of Mauritian Prime Minister Navinchandra Ramgoolam to India, where he held extensive talks with Indian Prime Minister Narendra Modi in Varanasi. This package encompasses assistance across various sectors, including health, infrastructure, and maritime security.
The economic package consists of blended financial assistance through grants and lines of credit. Approximately USD 215 million (MUR 9.8 billion) will be allocated as grants for key projects such as the construction of the New Sir Seewoosagur Ramgoolam National Hospital, the establishment of an AYUSH Centre of Excellence, a Veterinary School and Animal Hospital, and the provision of helicopters to Mauritius. These projects will be jointly implemented by both countries.
An additional USD 440 million (MUR 20.1 billion) will be invested in significant infrastructure projects. These include the construction of a new Air Traffic Control (ATC) tower at the Sir Seewoosagur Ramgoolam International Airport, development of Motorway M4, development of Ring Road Phase II, and the acquisition of port equipment. Furthermore, India has committed USD 25 million in budgetary assistance for the current financial year.
Beyond infrastructure and healthcare, the package extends to maritime security. Both sides have agreed to collaborate on the redevelopment of the Port of Mauritius and the joint monitoring of the Chagos Marine Protected Area. This collaboration is particularly significant as it enhances Mauritius's capacity to monitor its exclusive economic zone (EEZ), especially after the agreement with the UK regarding the sovereignty of the Chagos Islands. A Mauritius Coast Guard ship is currently undergoing refitting in India, and 120 Mauritian officers are receiving training in India. Moreover, India and Mauritius have concluded an agreement on cooperation in the field of hydrography, which includes joint surveys, navigation charts, and hydrographic data of the EEZ over the next five years.
Prime Minister Modi emphasized the shared priority of a free, open, and secure Indian Ocean and described Mauritius as a crucial part of India's "Neighbourhood First" policy and its "Vision MAHASAGAR" (Mutual and Holistic Advancement for Security and Growth Across Region). He stated that the economic package is not merely assistance but an investment in their shared future. Seven Memorandums of Understanding (MoUs) were signed across diverse areas, including science and technology, oceanography, public administration, power, hydrography, and space cooperation. Key agreements include a space collaboration deal for establishing telemetry and tracking stations, hydrographic mapping, and education partnerships between IIT Madras and the University of Mauritius. Modi also announced the establishment of a new directorate of science and technology in Mauritius and the launch of training modules of Mission Karmayogi in Mauritius.
Prime Minister Ramgoolam expressed his gratitude for India's assistance in key sectors and raised the need for technical cooperation to enhance Mauritius's surveillance capacity in the Chagos Islands. He also noted that Mauritius would prefer to acquire a vessel from India for this purpose, highlighting the symbolic importance of such a partnership.
The strengthened partnership between India and Mauritius is also evident in their commitment to enabling bilateral trade in local currencies, following the successful launch of UPI and RuPay cards in Mauritius. This initiative aims to further deepen economic ties and facilitate smoother transactions between the two countries.
