Trade Policy Lens: Perspectives That Power Policy
India's first Africa-focused trade pact, strengthening trade, services, and economic cooperation through Mauritius. A comprehensive analysis of the landmark agreement that entered into force on April 1, 2021.
CECPA – Foundation of the Partnership
Historic Milestone in India-Africa Relations
India and Mauritius signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) in 2021, which entered into force on April 1, 2021, marking India's first trade pact with an African country. This agreement represents a strategic partnership between two Indian Ocean neighbors with deep historical and cultural ties.
Core Components:
- Trade in goods with comprehensive tariff liberalization
- Trade in services across multiple high-value sectors
- Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) disciplines
- Economic cooperation chapter covering around 25 sectors
- Auto-Trigger Safeguard Mechanism added in August 2022
Key Milestones
Signed: 2021
Entry into Force: April 1, 2021
Enhanced Framework: August 2022 (General Economic Cooperation chapter and Auto-Trigger Safeguard Mechanism added)
Strategic Elevation: 2025 (ties elevated to Enhanced Strategic Partnership)
Deepening Strategic & Economic Ties
Strategic Partnership Framework
Enhanced Strategic Partnership
In 2025, bilateral ties were elevated to an Enhanced Strategic Partnership, reinforcing Mauritius as a key Indian Ocean partner and demonstrating the depth of India-Mauritius relations.
Infrastructure Development
A USD 680 million Special Economic Package supports critical Mauritian infrastructure including ports, airports, roads, schools, and hospitals.
Green Energy Collaboration
A 17.5 MW floating solar plant project demonstrates commitment to sustainable development and renewable energy partnership.
High Powered Joint Trade Committee
An HPJTC has been established to review CECPA, adjust tariffs, and expand market access over time, ensuring the agreement evolves with changing needs.
Beyond Trade: Comprehensive Partnership
The India-Mauritius relationship extends far beyond traditional trade metrics. The USD 680 million economic package represents India's commitment to supporting Mauritius's development priorities across critical infrastructure sectors, strengthening the foundation for long-term economic cooperation.
Trade, FDI, and Market Access
Trade Profile and Opportunities
India's Key Exports
India exports petroleum products, pharmaceuticals, cereals, and cotton to Mauritius, with India accounting for around 11% of Mauritius's imports as its third-largest import partner.
Mauritius's Key Exports
Mauritius exports products like vanilla, medical devices, specialty sugar, and metal alloys to India, supported by CECPA preferences and market access provisions.
Growing Bilateral Trade
Bilateral trade reached approximately USD 887.25 million in FY 2024-25, demonstrating steady growth in the economic relationship post-CECPA implementation.
Major FDI Source
Mauritius remains a major FDI source for India with roughly USD 180 billion cumulatively from 2000 to 2025, playing a crucial role in India's investment landscape.
Market Access Benefits
CECPA provides preferential market access for goods from both countries, reducing tariffs and enabling businesses to compete more effectively. The agreement creates opportunities for exporters to expand their presence in each other's markets while maintaining protections for sensitive sectors.
New Financial & Business Opportunities
Financial Innovation and Integration
The India-Mauritius partnership has pioneered several financial innovations that facilitate easier trade, investment, and people-to-people connections. These developments position Mauritius as a strategic gateway for Indian businesses expanding into Africa and the Indian Ocean region.
Key Initiatives
Local Currency Trade
Local currency trade in Indian Rupee (INR) and Mauritian Rupee (MUR) has been enabled, reducing transaction costs and currency risks for businesses engaged in bilateral trade.
UPI and RuPay Launch
India's Unified Payments Interface (UPI) and RuPay card network have been launched in Mauritius, facilitating seamless digital payments and financial connectivity between the two nations.
International Financial Centre
CECPA combined with Mauritius's International Financial Centre status positions the island as a strategic gateway for Indian businesses into Africa and the wider Indian Ocean region.
Priority Cooperation Areas
Priority areas include sustainable growth, green energy, ocean economy, ICT, financial services, and MSME collaboration, creating new avenues for trade and investment.
Strategic Gateway to Africa
Mauritius's position as an International Financial Centre, combined with CECPA provisions and strong bilateral ties, makes it an ideal platform for Indian businesses seeking to expand into African markets. The agreement facilitates this strategic positioning through comprehensive trade and investment provisions.
Emerging Cooperation Sectors
Sustainable Growth: Joint initiatives promoting environmentally sustainable economic development
Green Energy: Renewable energy projects including the 17.5 MW floating solar plant
Ocean Economy: Blue economy initiatives leveraging shared Indian Ocean resources
ICT: Information and communications technology collaboration and digital connectivity
Financial Services: Enhanced financial sector cooperation and integration
MSME Collaboration: Support for small and medium enterprises in both countries
Economic Cooperation Framework
Sectoral Cooperation (Around 25 Sectors)
Sustainable Development
Joint initiatives promoting environmentally sustainable economic growth and climate-resilient development across both nations.
Ocean Economy
Blue economy cooperation leveraging shared Indian Ocean resources for fisheries, marine conservation, and maritime trade.
ICT and Digital Services
Information technology and digital services collaboration including digital payments, e-governance, and tech innovation.
Financial Services
Enhanced cooperation in banking, insurance, and financial technology sectors with Mauritius serving as a financial hub.
Healthcare and Pharmaceuticals
Medical tourism, pharmaceutical exports, and healthcare services cooperation strengthen health sector ties.
Tourism and Hospitality
Enhanced people-to-people connections through tourism promotion and hospitality sector collaboration.
Education and Skill Development
Academic partnerships, student exchanges, and vocational training programs build human capital.
Agriculture and Food Processing
Cooperation in agricultural technology, food processing, and sustainable farming practices.
Auto-Trigger Safeguard Mechanism
Added in August 2022, the Auto-Trigger Safeguard Mechanism provides additional protection for domestic industries against import surges, ensuring that liberalization benefits both economies without causing disruption to sensitive sectors. This mechanism allows for automatic safeguard measures when imports exceed predetermined thresholds.
Strategic Importance & Impact
Why This Agreement Matters
First Africa-Focused Trade Pact
CECPA marks India's first trade agreement with an African country, opening strategic pathways for deeper engagement with the African continent.
Indian Ocean Partnership
Strengthens India's position in the Indian Ocean region, with Mauritius serving as a key maritime and economic partner.
Investment Gateway
With USD 180 billion cumulative FDI, Mauritius plays a crucial role in facilitating investment flows to India and serving as a financial hub.
Cultural and Historical Ties
Builds on deep cultural and historical connections between India and Mauritius, strengthening people-to-people bonds.
Economic Diversification
Supports economic diversification in both countries through cooperation across 25+ sectors from green energy to ICT.
Sustainable Development
Emphasizes sustainable growth, green energy, and ocean economy cooperation, aligning with global sustainability goals.
Enhanced Strategic Partnership (2025)
The elevation of bilateral ties to an Enhanced Strategic Partnership in 2025 reflects the growing importance of the India-Mauritius relationship. This strategic upgrade, combined with the USD 680 million economic package, demonstrates both nations' commitment to deepening cooperation across economic, strategic, and developmental dimensions.
Conclusion: A Model Partnership for India-Africa Relations
The India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement, which entered into force on April 1, 2021, represents far more than a traditional trade agreement. As India's first trade pact with an African country, CECPA establishes a strategic blueprint for India's engagement with the African continent while strengthening a deep partnership between two Indian Ocean neighbors.
Since its implementation, CECPA has evolved beyond its original scope. The addition of the General Economic Cooperation chapter and Auto-Trigger Safeguard Mechanism in August 2022 demonstrated both countries' commitment to building a robust, balanced framework that supports growth while protecting sensitive sectors. The establishment of the High Powered Joint Trade Committee ensures the agreement remains dynamic and responsive to emerging opportunities and challenges.
The elevation of bilateral ties to an Enhanced Strategic Partnership in 2025 marks a new chapter in this relationship. The USD 680 million Special Economic Package supporting Mauritian infrastructure across ports, airports, roads, schools, hospitals, and a 17.5 MW floating solar plant demonstrates India's commitment to Mauritius's development priorities and shared prosperity.
Bilateral trade of approximately USD 887.25 million in FY 2024-25, combined with Mauritius's position as a major FDI source with roughly USD 180 billion in cumulative investment (2000-2025), underscores the economic depth of this partnership. India accounts for around 11% of Mauritius's imports as its third-largest import partner, while Mauritius serves as a strategic gateway for Indian businesses into Africa and the wider Indian Ocean region.
Financial innovations including local currency trade in Indian Rupee and Mauritian Rupee, the launch of UPI and RuPay in Mauritius, and Mauritius's International Financial Centre status create a modern, integrated financial ecosystem that facilitates seamless economic interaction. These developments position the partnership at the forefront of digital financial integration in the region.
Priority cooperation areas spanning sustainable growth, green energy, ocean economy, ICT, financial services, and MSME collaboration demonstrate the comprehensive nature of this partnership. The agreement covers around 25 sectors, creating diverse opportunities for businesses, professionals, and communities in both nations.
Key Takeaways:
- India's first trade agreement with an African country, setting a precedent for India-Africa economic engagement
- Bilateral trade of USD 887.25 million in FY 2024-25 with India as Mauritius's third-largest import partner (11% share)
- Mauritius remains a major FDI source with USD 180 billion cumulative investment to India (2000-2025)
- Enhanced Strategic Partnership status achieved in 2025, elevating bilateral ties to new heights
- USD 680 million Special Economic Package supporting infrastructure: ports, airports, roads, schools, hospitals, and 17.5 MW floating solar plant
- Financial innovations: local currency trade (INR-MUR), UPI and RuPay launch enabling seamless digital payments
- Mauritius International Financial Centre status combined with CECPA positions island as gateway to Africa
- High Powered Joint Trade Committee established for ongoing review, tariff adjustments, and market access expansion
- Auto-Trigger Safeguard Mechanism added in August 2022 for industry protection
- Comprehensive coverage: trade in goods, services, SPS/TBT disciplines, and economic cooperation across 25+ sectors
- Priority sectors: sustainable growth, green energy, ocean economy, ICT, financial services, MSME collaboration
- Key Indian exports: petroleum products, pharmaceuticals, cereals, cotton
- Key Mauritian exports: vanilla, medical devices, specialty sugar, metal alloys
The India-Mauritius CECPA demonstrates how trade agreements can serve broader strategic objectives beyond tariff reductions. By combining market access provisions with infrastructure support, financial integration, and cooperation across diverse sectors, the agreement creates a foundation for long-term, sustainable economic partnership. The elevation to Enhanced Strategic Partnership in 2025 and the substantial economic package reflect both nations' vision of shared prosperity and regional leadership.
As India's first agreement with an African nation, CECPA serves as a model for how India can leverage historical ties, geographic proximity, and complementary strengths to build comprehensive economic partnerships. Mauritius's role as both a trading partner and an investment gateway positions this relationship at the intersection of India's "Act East" and Africa engagement strategies, creating a unique platform for triangular cooperation between India, Mauritius, and the broader African continent.
Looking ahead, the agreement's built-in review mechanisms through the HPJTC, combined with the ongoing addition of new cooperation areas and the 2022 safeguard enhancements, ensure that CECPA will continue to evolve in response to changing economic realities and emerging opportunities. The India-Mauritius partnership, strengthened by CECPA and the Enhanced Strategic Partnership, stands as a testament to how shared values, mutual respect, and strategic vision can create win-win economic frameworks that benefit both nations while contributing to broader regional stability and prosperity.