India and Mauritius share one of the most enduring and comprehensive partnerships in the Indian Ocean region. Rooted in history, culture, diaspora, and strategic interests, the relationship has evolved into a model of South–South cooperation. For India, Mauritius is both a cultural kin and a maritime ally, while for Mauritius, India remains a reliable partner in development, crisis response, and security.

Historical Linkages

• Colonial Past & Migration: First Indians arrived in Mauritius during French rule in the 18th century. Later, under British rule, Mauritius became a hub for indentured labour.
• Indentured Labourers: Between 1834 and early 1900s, nearly half a million Indian workers migrated to Mauritius. Today, over 70% of the Mauritian population is of Indian origin.
• Aapravasi Ghat: Recognised by UNESCO as a World Heritage Site, symbolising the beginning of indentured labour migration.
• Freedom Struggle Connections: Leaders like Seewoosagur Ramgoolam maintained links with Indian freedom fighters like Subhas Chandra Bose.
• Symbolic Ties: Mauritius celebrates its National Day on March 12—the date of Gandhi’s Dandi March.
• Diplomatic Milestone: India established diplomatic ties with Mauritius in 1948, even before its independence in 1968.

Strategic and Geopolitical Significance

• “Star and Key of the Indian Ocean”: Mauritius’ location astride major sea routes makes it central to India’s Indo-Pacific strategy.
• Maritime Security:
  • Member of the Colombo Security Conclave (CSC) with India, Sri Lanka, Maldives, and Bangladesh.
  • Coastal radar stations in Mauritius linked with India’s Information Fusion Centre–IOR.
• Agaléga Island Project: India has developed an airstrip and jetty enhancing surveillance and operational reach.
• Gateway to Africa: Mauritius provides access to the African Continental Free Trade Area (AfCFTA).
• Counterbalance to China: India’s presence in Mauritius is critical amid China’s growing influence in the Western Indian Ocean.

Economic and Trade Relations

• Trade Profile:
  • India is among Mauritius’ top three trading partners.
  • India’s exports: Pharmaceuticals, cereals, cotton yarn, vehicles, mineral fuels.
  • Mauritius’ exports: Medical devices, scrap metals, lead-acid batteries.
• Investment Flows:
  • Mauritius was India’s largest source of FDI, contributing over USD 177 billion since 2000.
  • In 2023–24, Mauritius became India’s second-largest FDI source after Singapore.
  • Indian companies are investing in Mauritius’ financial services, manufacturing, and healthcare.

Cultural and Developmental Cooperation

• Institutions:
  • Mahatma Gandhi Institute (MGI) (1976) – promotes Indian culture and studies.
  • World Hindi Secretariat – global centre for Hindi promotion.
  • Indira Gandhi Centre for Indian Culture (IGCIC) – India’s largest cultural centre abroad.
• Capacity-Building:
  • ITEC Programme: Mauritius is a major beneficiary.
  • Know India Programme (KIP): Strengthens youth connect.
  • e-VBAB Initiative: Provides e-learning and telemedicine.

Role of the Indian Diaspora

• Nearly 70% of Mauritius’ population is of Indian origin.
• Over 26,000 Indian nationals and 13,000 OCI cardholders reside in Mauritius.
• In 2024, India extended OCI eligibility up to the seventh generation of Mauritian Indians.
• Diaspora acts as a natural bridge in bilateral ties.

Tourism and Education

• Visa Cooperation: Indians get visa-free entry into Mauritius; Mauritians get gratis visas to India.
• Tourism: Pre-COVID, ~80,000 Indians visited Mauritius annually; ~30,000 Mauritians visited India, especially for medical tourism.
• Education: Over 2,300 Indian students study in Mauritius; Mauritian students increasingly opt for Indian universities.

Challenges in the Relationship

1. Taxation Issues: 2016 changes to DTAA reduced Mauritius’ attractiveness as an investment hub.
2. China’s Influence: Beijing funds major projects, competing with Indian presence.
3. Ethnic Balance: Need to avoid perception of bias towards the Indian-origin majority.
4. Drug Trafficking: Mauritius is emerging as a hub in the Indian Ocean narcotics trade.
5. Climate Change: Rising sea levels, cyclones, and coastal erosion pose existential threats to Mauritius.

Conclusion

India–Mauritius ties are a unique blend of historical solidarity, cultural affinity, economic cooperation, and strategic partnership. Mauritius’ strategic location makes it indispensable to India’s Indo-Pacific vision, while diaspora bonds make relations people-centric. However, India must navigate taxation disputes, Chinese competition, ethnic sensitivities, and climate challenges with nuanced diplomacy.

For UPSC: This case illustrates India’s diaspora diplomacy, maritime strategy, South–South cooperation, Indo-Pacific policy, and climate change diplomacy—all highly relevant for international relations and GS-II answers.

Fitch Ratings has revised India’s GDP growth projection for FY 2025-26 to 6.9%, up from its earlier estimate of 6.5%. This upward revision follows a robust performance in Q1 (April–June 2025), where India’s economy grew by 7.8%, driven primarily by services, private consumption, and resilient domestic demand.

This revision highlights India’s relative economic strength in a turbulent global environment, but it also raises key debates around inflation management, structural reforms, and external vulnerabilities.

Why Fitch Revised the Forecast

1. Strong Q1 Performance:
   • The economy clocked 8% growth in Q1, higher than expected.
   • Expansion led by services sector (IT, financial services, tourism) and strong urban demand.
2. Consumption and Investment Push:
   • Rising disposable incomes, government infrastructure spending, and robust credit growth are boosting demand.
   • Private investment shows signs of revival due to policy reforms and stable macroeconomic fundamentals.
3. Domestic Demand Cushion:
   • India’s large domestic market shields it from external shocks better than many export-driven economies.

Risk Factors Ahead

1. Global Slowdown: Weak growth in advanced economies (US, EU, Japan) could reduce exports.
2. Trade Tensions & Protectionism: Rising tariff disputes and supply chain disruptions can affect India’s external sector.
3. Inflation Pressures: Rising food and fuel costs may hurt consumption if not managed well.
4. Climate & Geopolitical Risks: Monsoon irregularities, energy price shocks, or conflicts like Ukraine-Russia can alter projections.

 UPSC Relevance and Analytical Angles

1. Growth vs Inflation Debate
   • India faces the classic policy dilemma: sustaining high growth while keeping inflation within RBI’s comfort zone (4% ±2).
   • Monetary tightening to control inflation may slow credit expansion, whereas loose policy risks overheating.
2. Role of Global Rating Agencies
   • Fitch, Moody’s, and S&P influence investor confidence, FDI flows, and bond markets.
   • India has often criticized their methodology as biased against developing countries.
   • For UPSC: Can be used as a case study on Global Financial Governance.
3. Economic Reforms for Sustainable Growth
   • Need for reforms in labour markets, land acquisition, logistics, taxation.
   • Boosting manufacturing under “Make in India”, diversifying exports, and improving ease of doing business are critical.
   • Focus on green energy, digital economy, skill development for long-term resilience.
4. India in Global Context
   • Despite global headwinds, India remains the fastest-growing major economy.
   • This strengthens India’s position in G20, BRICS, and global South–South cooperation.

Conclusion

The upward revision of India’s GDP growth forecast by Fitch to 6.9% signals optimism about India’s economic trajectory. However, sustaining this momentum requires careful balancing of growth with price stability, reducing dependence on external markets, and pushing forward with structural reforms.

For UPSC answers, this event can be connected to themes like:

• Economic resilience in a multipolar world
• Domestic demand as India’s growth engine
• Global economic governance and India’s financial diplomacy