India, Mauritius to start trade in national currencies: PM Modi

India, in keeping with the special relationship with Mauritius, on Thursday rolled out a special economic package for the southern Indian Ocean Region state, announcing assistance worth $680 million across health, infrastructure, and maritime security sectors.

The announcement came after Prime Minister Narendra Modi held extensive talks in New Delhi with Mauritius Prime Minister Navinchandra Ramgoolam, who is on an official visit to India.

The package comprises development projects to be funded through direct grants worth approximately $215 million. These include the construction of a new Sir Seewoosagur Ramgoolam National Hospital, the establishment of an AYUSH Centre of Excellence, a Veterinary School and Animal Hospital, and the provision of helicopters for Mauritius.


Additionally, projects worth approximately $440 million (MUR 20.1 billion) will be undertaken on a grant-cum-Line of Credit basis. These projects cover key infrastructure demands, ranging from the completion of a new air traffic control tower at SSR International Airport to the expansion of Motorway M4, the development of Ring Road Phase II, and the acquisition of modern port equipment by the Cargo Handling Corporation.

On the strategic front, both sides agreed in principle to cooperate on the redevelopment and restructuring of Mauritius' port facilities, as well as India's assistance in the development and surveillance of Chagos Marine Protected Area. This move underscores New Delhi's growing role in the security architecture of the Indian Ocean. New Delhi also announced that it would extend budgetary support of $25 million to Port Louis during the current financial year.

While speaking at a joint media briefing after holding bilateral talks with his Mauritius counterpart Navinchandra Ramgoolam in Varanasi on Thursday, Modi said, "India and Mauritius are two nations, but our dreams and destiny are one."

He said both India and Mauritius would work towards enabling trade in local currencies.