Introduction

Mauritius is situated in the Indian Ocean, approximately 2,400 kilometres off the south east coast of Africa. The island, which is of volcanic origin, covers an area of 1,865 square kilometres. Coral reefs surround most of the coast except the south. The average temperature during daytime is 25° C and rarely under 13° C at night. There are two seasons - the Hot from November to April and the Warm from May to October.

Port Louis – the Capital City - naturally grew to be the economic and administrative capital of Mauritius because of the superior quality of its harbour. The city underwent a second birth in the 1980s when post-independence economic stagnation finally gave way to bursting activity. The skyline consists of high-rising towers, which compete with buildings from the colonial times.

Mauritius is a plural society where all the ethnic groups present – Hindus, Muslims, Creoles, Chinese and Europeans – live in peace and where all the ancestral cultures have been preserved. These features make the island a unique place in the world.

Investment Climate

The manufacturing sector continues to offer good prospects to potential investors in the following areas: information technology, printing and publishing, electronics, precision engineering, jewellery, pharmaceuticals and health care, agro-based industry and high quality textiles and apparel. However, investment in the EPZ is not restricted to these sectors only and any project can be carried out after the promoter has secured the various clearances.

Information Technology - The information technology sector in Mauritius has experienced a steady growth during the last three years. Several companies from USA, UK, France, Belgium, South Africa, Singapore and India have already opted for Mauritius to conduct the following operations to cut down their operation costs and find new markets: software development; pre-press activities; high value-added data processing; CD-ROM & Internet publishing; development of multimedia applications; and, translation.

Printing and Publishing - The Mauritian printing houses have made significant investments in state-of-the-art technology to achieve higher output and quality prints. The industry has advanced equipment such as high-end colour scanners, large format image setters, sheeted and web-fed colour offset presses and a variety of automatic binding and finishing machines. To promote the expansion and modernisation of printing activities concessionary loans at 10 percent interest rate are provided by the Development Bank of Mauritius.

Light Engineering - The light engineering and high precision plastics sectors feature prominently in the government's industrial strategy. Support services to these sectors are being actively encouraged and government is committed to consolidate and build up an efficient manufacturing base in these sectors. Products which can be manufactured in Mauritius for the regional and international markets include: injection moulded plastic components; automotive parts and components (eg. gasket sets, shock absorbers, filters, radiators); household appliances, electric fans, air conditioners and water pumps; equipment for the construction industry; brass locks, padlocks, door knobs; - Parts and components for motorcycles and bicycles; and plastic casing for TV, video, fax machines, and telephones and PABX systems.

Electronics - According to a comparative cost analysis conducted by experts of international repute, the following products can be competitively manufactured in Mauritius: printed circuit boards; security devices and systems; smart (IC) cards; modular power converters; magnetics; and decoding boxes for modems and satellite TVs. Products that can be assembled in Mauritius for the regional market include: audio and video equipment; household electrical appliances; telecommunication equipment; and, computers.

Jewellery - Out of 300 jewellery manufacturers, some 20 companies are now operating in the EPZ and undertake a range of manufacturing processes such as casting, stone setting, metal plating, stamping, manufacture of mechanical chains and hollow jewellery.

Pharmaceuticals and Healthcare - The health care industry includes the manufacture of pharmaceuticals and the development of medical equipment and instruments. Products such as gelatine capsules, bulk drugs, medicines, disposable syringes, perfusers and diffusers are presently being manufactured in Mauritius for export.

Agro-based industry - The agro-based industry involves the processing of local raw materials, including the by-products of the sugar industry. Products that are being manufactured are bakers' yeast, perfumes, citric acid, confectionery, cut flowers and pot plants, hydroponics, seaweed and seaweed products.

Mauritius – India Relations

India and Mauritius have very close and unique relations which encompass virtually all aspects of bilateral and multilateral relations characterised by common kinship, culture, religion and interests. Since Independence in 1968, Mauritius has enjoyed close political links with India.

The two sides have maintained a high momentum of bilateral high-level exchanges in line with excellent bilateral relations. This, in turn, has helped in further consolidation and diversification of bilateral relations.

Indian public sector enterprises based in Mauritius are Bank of Baroda, Life Insurance Corporation, Indian Oil Corporation, New India Assurance, State Bank of India International, Indian Handloom House, and Telecommunications Consultants India Ltd. Air Mauritius operates three weekly flights to Mumbai, two to Delhi and one Chennai in a joint operation with Air India. A “Made in India” Fair was organised by the High Commission of India in collaboration with the Confederation of Indian Industry (CII) in June, 1995 and again in July 1997. CII has set up a joint task force with the Mauritius Chamber of Commerce and Industry. India Trade Promotion Organisation and the High Commission organised INDEXPO’99 in August, 1999. Bilateral trade between India and Mauritius has increased in recent years and Indian exports have been growing, making India the third largest supplier of goods to Mauritius. Indian exports to Mauritius in 2001 amounted to M.Rs. 4656 million while Mauritian exports to India were M.Rs. 65 million. In addition to the trade in goods, there is an expanding relationship in the field of bilateral investments. Investment into India through Mauritius, taking advantage of the favourable bilateral Double Tax Avoidance regime and the low rates of taxation in Mauritius, has grown exponentially in recent years making such investment amongst the largest. In 2000, investment through Mauritius accounted for 19 percent of the total FDI inflows into India. Investment from India into Mauritius have also grown and reached a peak in 1995 amounting to 48 percent of the total FDI in Mauritius.

Mauritius Country Data