New Delhi, Aug 24 (IANS) If trade in local currencies is introduced not only between India and Mauritius but also in terms of wider BRICS cooperation and the African continent, it could be a game-changer for all these economies, Mauritius Minister of Financial Services and Economic Planning Jyoti Jeetun said.
"At the current time, when there is considerable debate about geopolitics and the Global South, this is becoming a very important issue," the minister told IANS in an exclusive interview.
She said that the Bank of Mauritius signed an MoU with the Reserve Bank of India last year to establish a clearing system for Indian rupees and Mauritian rupees.
"Instead of using hard currencies, this would allow us to trade directly in our own local currencies. I know that the Bank of Mauritius is working with the RBI to implement this. It would allow us to trade in our local currencies and reduce our dependence on hard currencies. This would significantly help our economies, particularly in the current global and geopolitical context," the minister said.
Jeetun also said that India's growth story and Prime Minister Narendra Modi's economic vision of Viksit Bharat 2047 are a great inspiration for Mauritius.
"When it was launched, I believe India was the 10th or 11th-largest economy in the world. It is now the fourth-largest and is soon expected to become the third-largest global economy. The growth story speaks for itself," she noted.
She also said under the Comprehensive Economic Cooperation and Partnership Agreement (CECPA), trade has increased, although perhaps not enough. Mauritius is a very small domestic market, with a population of around 1.2 million. "Nevertheless, trade has continued to grow".
"I think the bigger opportunity lies in the broader India-Mauritius-Africa ecosystem, which can provide much wider opportunities for trade and commercial relations. Mauritius is part of the African Union and is a member of both SADC and COMESA. Africa is experiencing significant economic growth and attracting investment, while its large population represents a major market, much like India," the minister pointed out.
"We are therefore working strongly to connect India with the African continent and explore how Mauritius can be used as a platform for wider trade between Africa and India," se observed.
Asked about the recent ratification of the Double Taxation Avoidance Agreement (DTAA protocol), she said, “We now feel strongly that we can move forward and provide certainty, predictability and confidence to investors regarding the Mauritius-India treaty and economic relationship.”
On bilateral energy ties, Jeetun said an MoU was signed between the two governments last week during Petroleum Minister Hardeep Singh Puri’s visit to Mauritius. In addition, a sale and purchase agreement has been signed between Indian Oil and the State Trading Corporation, which is the entity responsible for importing fuel in Mauritius.
"We view this not simply as a trade relationship but as an economic partnership that provides enormous energy-security guarantees to Mauritius," she said.
"At a time when there is so much geopolitical tension, especially following the war involving Iran, the whole world is facing uncertainty and unpredictability regarding fuel supplies. Supply chains have been disrupted, and costs have increased. This is a government-to-government arrangement being executed by Indian Oil, and we greatly value it as an important component of the Mauritius-India relationship," the minister added.
--IANS
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