India is considering providing financial assistance to Air Mauritius, the flag carrier of the island nation, due to a combination of strategic, economic, and diplomatic factors. The airline is currently facing a severe financial crisis, and the Indian government is exploring ways to help the carrier regain stability.

One of the primary reasons for India's interest in assisting Air Mauritius lies in the strong bilateral relations between the two countries. India and Mauritius share deep historical, cultural, and economic ties. People of Indian origin comprise approximately 70% of Mauritius' population. These kinship bonds have fostered a close relationship characterized by mutual trust and understanding. India has historically been a "First Responder" for Mauritius in times of crisis and the island nation also holds geostrategic importance for India.

From a strategic perspective, Mauritius' location in the Indian Ocean Region (IOR) is of significant importance to India. The island nation lies along key sea lanes of communication (SLOCs), and India views Mauritius as a crucial partner in its vision for a free, open, and secure IOR. India has consistently emphasized Mauritius' centrality to its IOR strategy, as demonstrated by Prime Minister Modi's articulation of the "MAHASAGAR" vision in Port Louis. Supporting Air Mauritius aligns with India's broader goal of strengthening its presence and influence in the region, especially given increasing geopolitical competition.

Economically, India has been among Mauritius' top trading partners, and a stable Air Mauritius can further boost trade and tourism between the two countries. The Comprehensive Economic Cooperation and Partnership Agreement (CECPA) signed in 2021 aims to enhance economic ties, and a financially healthy Air Mauritius can facilitate greater connectivity and trade flows. The Mauritian government has requested increased flight frequencies from Indian carriers to its capital, Port Louis, indicating the importance of aviation connectivity to their economic growth.

Air Mauritius has been struggling with financial problems for over two decades, accumulating losses of approximately €317 million between March 2000 and March 2024. By early 2025, the airline had a shareholder equity deficit of about €195 million, leading to technical insolvency, which was publicly acknowledged by Prime Minister Navin Ramgoolam. To address these challenges, Air Mauritius has implemented a financial restructuring plan, including converting debt into equity and streamlining operations. The airline aims to achieve profitability by the 2026-27 financial year. The Indian government is encouraging its airlines to consider strategic investments in Air Mauritius, which faces a severe financial crisis with a significant negative equity. This initiative follows a request from Mauritius for potential investment and increased flight frequencies from Indian carriers.

The specific mechanisms of India's potential assistance could include strategic investments by Indian airlines, code-sharing agreements, and increasing flight frequencies. The Indian government has reportedly nudged domestic carriers to consider investing in Air Mauritius, which is seeking to raise funding by selling equity. Any such investment would likely depend on due diligence and alignment with the Indian airlines' business interests.

Furthermore, Air India and Air Mauritius have recently expanded their codeshare partnership, adding 17 new routes across India, Mauritius, Réunion, South Africa, and Madagascar. This agreement enhances connectivity and provides seamless travel options for passengers traveling between the Indian subcontinent and Africa.

In conclusion, India's plan to help Air Mauritius is driven by a combination of strategic, economic, and diplomatic considerations. By supporting the island nation's flag carrier, India aims to strengthen its bilateral relations, enhance its presence in the Indian Ocean Region, and promote economic cooperation. The specific details of the assistance are still being worked out, but the commitment to supporting Air Mauritius reflects India's long-standing partnership with Mauritius and its strategic interests in the region.