Mauritius Minister Proposes Wider Local-Currency Trade With India, BRICS And Africa

Trade between India and Mauritius in their local currencies, along with broader adoption across BRICS and African economies, could significantly strengthen economic cooperation and reduce dependence on major international currencies, Mauritius Minister of Financial Services and Economic Planning Jyoti Jeetun said on Monday. She said the initiative has gained importance amid growing geopolitical uncertainty and increasing discussions around cooperation among countries of the Global South.

Jeetun said the Bank of Mauritius and the Reserve Bank of India signed a memorandum of understanding last year to establish a clearing system for Indian rupees and Mauritian rupees. The proposed mechanism would allow businesses in both countries to conduct transactions directly in their respective currencies instead of relying on hard currencies. She said the arrangement could reduce currency-related dependence and support trade between the two economies, particularly amid changing global economic conditions.

The minister also highlighted India’s economic growth and Prime Minister Narendra Modi’s Viksit Bharat 2047 vision as an inspiration for Mauritius. She noted that India has moved from being the 10th or 11th-largest economy globally to the fourth-largest and is expected to become the third-largest economy. Jeetun said the growth trajectory demonstrates the potential for deeper commercial cooperation between the two countries.

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She said bilateral trade has increased under the Comprehensive Economic Cooperation and Partnership Agreement, although there remains scope for further expansion. With Mauritius having a population of around 1.2 million and a relatively small domestic market, Jeetun identified a larger opportunity in connecting India with the wider African market. Mauritius is a member of the African Union as well as the Southern African Development Community and the Common Market for Eastern and Southern Africa, giving it potential to serve as a platform for broader India-Africa trade and investment.

Jeetun also welcomed the recent ratification of the protocol to the Double Taxation Avoidance Agreement between India and Mauritius, saying it would provide greater certainty and confidence to investors. On energy cooperation, she noted that the two governments signed an MoU during Petroleum Minister Hardeep Singh Puri’s recent visit to Mauritius. Indian Oil and Mauritius’ State Trading Corporation have also signed a sale and purchase agreement for fuel supplies.

The minister described the energy arrangement as an important component of the wider economic partnership between India and Mauritius. She said geopolitical tensions, including the conflict involving Iran, have created uncertainty around global fuel supplies, disrupted supply chains and increased costs. Against this backdrop, she said government-to-government cooperation and direct fuel supply arrangements could provide Mauritius with greater energy-security assurance while strengthening the broader economic relationship with India.

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