Why in news?
During Mauritian Prime Minister Navinchandra Ramgoolam’s visit to Varanasi in early September 2025, India announced a special economic package worth about US$ 680 million. The package covers health, infrastructure, maritime security and education, reflecting the growing partnership between the two Indian Ocean nations.
Historical context
India and Mauritius share deep historical and cultural ties; over two‑thirds of Mauritians trace their ancestry to India. Since Mauritius’ independence in 1968, India has been a major development partner, providing financial assistance, training and scholarships. The two countries work together in forums like the Indian Ocean Rim Association and the Commonwealth, and Mauritian ports have long served as gateways for trade between Asia and Africa.
Key elements of the package
- Healthcare cooperation: India will help build the New Sir Seewoosagur Ramgoolam National Hospital and establish the first Jan Aushadhi Kendra and an AYUSH centre of excellence outside India.
- Education and research: Memoranda of Understanding between IIT Madras, IIPM Bengaluru and the University of Mauritius will encourage joint research, innovation and skill development.
- Infrastructure projects: Grants and lines of credit will support construction of the M4 motorway, the second phase of the Ring Road, a new air‑traffic‑control tower at Port Louis airport and acquisition of port equipment.
- Maritime and strategic cooperation: The package includes redevelopment of Port Louis to strengthen Mauritius as a maritime hub, hydrographic mapping of its exclusive economic zone and surveillance of the Chagos Marine Protected Area. India will also supply helicopters and provide defence training.
Significance
- Geopolitical importance: Mauritius lies close to key sea‑lanes in the Indian Ocean. Developing its port and maritime facilities helps India counter growing Chinese influence and enhances regional security.
- Economic gateway: Mauritius is a major conduit for foreign direct investment into India because of favourable tax treaties. Better infrastructure will promote trade and support India’s Sagarmala project.
- Soft power and diaspora diplomacy: The large Indian diaspora creates goodwill that India can leverage through cultural exchanges, scholarships and healthcare initiatives such as the AYUSH centre.
Challenges and the road ahead
- Strategic competition: China’s Belt and Road investments in the Indian Ocean put pressure on India to deliver projects efficiently.
- Climate vulnerability: Mauritius is prone to cyclones and rising seas; infrastructure must be built to withstand these hazards.
- Economic fragility: The island’s dependence on tourism and finance makes it sensitive to global downturns; diversification into technology and renewable energy is crucial.
With careful planning, digital monitoring of projects and greater private‑sector participation, the partnership can become a model for South–South cooperation and ensure that the “Neighbourhood First” policy benefits both countries.