Mauritius is ensuring transparency within the monetary companies sector and there are no shell companies there, Mauritian minister Soomilduth Bholah has mentioned as he pitched the island nation because the platform for Indian companies to faucet the African market.
In an unique interview to PTI within the nationwide capital, Mr. Bholah mentioned that Mauritius is in search of investments from India, which he described as an financial powerhouse.
Mauritius all the time promotes good governance and targeted on transparency. The nation would like to be taught from India in every sector, the Mauritius Financial Services and Good Governance Minister mentioned.
The island nation, which has an extended standing robust bilateral ties with India, is primarily in search of collaborative alternatives within the fintech house.
“It is a pleasure to be in India. I would say that while India is important for Mauritius, Mauritius is also important for India, especially in the financial services sector,” he mentioned.
In response to a question on notion that there are issues in sure quarters in regards to the funds coming in from Mauritius, the minister mentioned it is solely a notion.
“It is only a perception… I can confirm that there are no shell companies in Mauritius. We are compliant with OECD (norms).
“We are ensuring that there is transparency… we are selling transparency and this is what we wish to inform anyone who has an iota of that notion,” he said.
Mauritius is also a significant source of Foreign Portfolio Investments (FPI) coming into the Indian securities market and there were concerns about illegal routing of funds through shell companies.
The minister noted that the island nation has aligned its financial sector with international norms, including the OECD norms and FATF recommendations.
The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing. The Organisation for Economic Co-operation and Development (OECD) is an international organisation and a key body on international taxation matters.
Official data show that Mauritius was the third largest source of Foreign Direct Investment (FDI) for India with an inflow of USD 6.13 billion in 2022-23.
Mauritius International Financial Centre (IFC) acts as a hub for international banks, legal firms, corporate services, investment funds and private equity funds.
“(We are in search of investments) from India to Mauritius. We act as a platform between India and Africa, notably and we’ve to indicate that to the Indian traders that we’ve progressed with regard to the convenience of doing enterprise,” Mr. Bholah said.
Highlighting various business aspects, the minister said Mauritius has various investment promotion and protection agreements and state of the art arbitration centre.
“The attraction is that we’ve a talented workforce, we are bilingual, (by means of us) attain out to African nations. We have a great banking system, telecommunication and infrastructure right here. These are (amongst) our forte,” he said.
According to India’s external affairs ministry, cumulative FDI worth $161 billion came from Mauritius to India in the two decades from 2000-2022, and the amount was 26 per cent of the total FDI inflows into India.
However, since signing of the amended Double Taxation Avoidance Convention (DTAC) in 2016, FDI inflows from Mauritius have dropped from $15.72 billion in 2016-17 to $6.13 billion in 2022-23, as per the ministry.
“We are not a competitor, we are extra like a collaborator. This is what we wish to inform India and Indian authorities… we sit up for extra collaborations as a substitute of competitors (within the monetary sector),” Mr. Bholah said.
Mauritius and India have a Comprehensive Economic Cooperation and Partnership Agreement (CECPA) that came into force in April 2021.
Under the CECPA, India’s exports to Mauritius amounted to $1.1 million in 2021, $1.8 million in 2022 and $1.7 million in 2023 (Jan-Aug) comprising mainly textiles, quartz slabs and spices.
Mauritian exports to India under CECPA stood at $1 million in 2022 and $3.7 million in 2023 (Jan-Aug), comprising mainly medical devices and apparel. 15, as per the external affairs ministry.
Currently, a high-level business delegation from Mauritius is on a ten-day visit to India and will be visiting the national capital, Chennai, Hyderabad and Mumbai.
“We are assembly so many stakeholders to boost our collaboration and to indicate that we are right here for India to go to Africa… I imagine that it is clever for Indian traders to undergo Mauritius platform relatively than go individually and it is going to be helpful for Indian traders,” the minister said.
The delegation, part of the Mauritius International Financial Centre (IFC) will conclude its visit on March 23.
After the visit of its mission to Mauritius in January, the International Monetary Fund (IMF) said the Mauritian economy rebounded strongly from the pandemic.
“Advancing structural reforms, together with by sustaining compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) requirements, enhancing governance, lowering ability mismatches within the labour market, and fostering digitalisation and climate-resilient infrastructure funding is key to supporting personal sector funding and selling financial diversification,” IMF’s Mariana Colacelli mentioned in a press release in February.
