Indo-mauritius trade bonding with the best

Mauritius and India have historical ties, common culture and values. At a time when economic slowdown has made most developed/developing markets an unattractive proposition, Mauritius offers plethora of foreign trade opportunities for Indian businesses. At the ET Indo-Mauritius Trade and Investment Seminar organised by The Economic Times, in association with HSBC, a delegation which comprised various senior people from India as well as Mauritius discussed the potential of trade relations between the two countries.

The panel comprising Rama Krishna Sithanen, vice prime minister and minister of finance and economic development, Mauritius, Bhriguraj Singh, senior vice-president, trade and supply chain, HSBC India, Couldip Basanta Lala, founder director, International Financial Services Limited, Naina Lal Kidwai, group general manager and country head of the HSBC group of companies in India, N Shridhar, CFO, Future Capital Holdings Ltd, Russell Parera, chief executive officer, KPMG India and Sandeep Uppal, chief executive officer, HSBC Mauritius put forth their views on the synergies between India and Mauritius that can be leveraged to derive mutual benefits.

Naina Lal Kidwai, group general manager and country head for HSBC group companies in India, the moderator for the session, kicked off the discussion by posing the question: 'How easy is to set up a business in Mauritius?' to the panelists.

Responding to the question, Couldip Basanta Lala, founder director, International Financial Services said, "You need 3-10 working days to acquire a business licence in Mauritius, depending upon the completeness of information. A prospective businessman has to produce all the relevant documents along with a business plan.

These are further passed onto the FSC for a global business licence. In the case of a fund management license, there is additional regulatory requirement and you can apply on one stop shop basis." He added that professionals have an experience of inbound investments into India. For fund managers as well as promoters, all inward funds go through Mauritius. The existing management companies are already experienced with the knowledge of making outbound investments as well.

The panelists further discussed Mauritius' status as a gateway to the African markets for India. Highlighting the advantages of Indo-Mauritius trade relations and their satisfying experience in fund management business in Mauritius, N Shridhar, CFO, Future Capital Holdings said, "Good infrastructure and bilingual culture with political synergies will be an advantage from Indian perspective. Apart from ease and speed, Mauritius has got a favourable and simplified tax regime, complemented by better jurisdiction for investments."

Echoing his views, Russell Parera, CEO, KPMG India said, "Mauritius has been a tried and tested route for FDI into India. Indian corporates can have an easier access to African markets through Mauritius, which has taken centre stage over the last few years." It offers good tier I access for SMEs and the market is relatively untapped until now. Tourism too can play a role in bringing the countries together, he added.

Besides Africa, Ms Kidwai highlighted the fact that Mauritius is also a gateway to other parts of the world. In response to this observation, Mr Bhriguraj Singh said, "Mauritius has predominantly been an oil-based and petro-based economy. It offers ease of doing business, given a combination of various natural advantages. Now, it is just matter of Indian companies realising the potential of Mauritius especially when other traditional markets are drying up in the current global downturn scenario."
Mauritius imports almost everything so it's an attractive proposition for the SMEs. The common perception of most Indians about Mauritius is that it's the route to be used to bring FDI into India. "However, increasingly, India Inc is using Mauritius as a platform to reach out to Africa, South Africa, Asia and Australia," informed Sandeep Uppal Chief Executive Officer of HSBC Mauritius.

"Indian players can participate in some niche businesses offered by the domestic market in Mauritius. The Taj and the Oberoi have already forayed in the tourism sector. Apollo and Fortis are likely to set up hospitals in Mauritius in the next two years. Educational institutions like NIFT, Bits Pilani are to set up shops there. Even MCX is setting up a commodities exchange in Mauritius. However, not all Indian companies are making use of the opportunities offered by the Mauritius market."

Mauritius acts a trade centre for outward and inward trade for India. Broaching the topic of China-Mauritius business relations, Ms Kidwai asked Mr Sithanen to elaborate on their trade relations and the lessons India could learn from the success story. As Ms Kidwai pointed out, it's a wake up call for India. Mr Sithanen answered, "We have enacted a legislation to make Mauritius a free port.

Instead of a country trying to sell to 25 countries in eastern Africa, the Chinese sell a large quantity to Mauritius, which in turn, takes the responsibility of exporting the goods to different parts of Africa. Chinese have decided to stay close to the market to reduce transportation cost and avail of benefits pertaining to logistics." China is setting up around 5-6 economic co-operative zonea and wants to use Mauritius to showcase the Chinese potential. The idea is to make the tourists aware about the Chinese economy and trade potential. China has invested $700 million in the ICT sector. It also plans to foray into the construction business in the third quarter which will employ around 40,000 people.

Summing up the panel discussion, Mr Sithanen said, "India and Mauritius share a special relationship bound by some common values. This relationship should be leveraged to broaden business opportunities for both the countries. Try Mauritius, test and compare it with other countries and arrive at a decision."