India-Mauritius trade to happen in local currency: PM Modi in joint statement

After launching Unified Payments Interface (UPI) and RuPay in Mauritius last year, Prime Minister Narendra Modi said on Thursday, in a joint statement with Mauritius PM Dr. Navin Ramgoolam in Varanasi, that the trade between the two countries will soon happen in their local currencies. “Last year, UPI and RuPay cards were launched in Mauritius. Now, we will work towards enabling trade in local currencies,” said PM Modi.

In February 2024, in a move to strengthen digital payment infrastructure and deepen economic ties, India expanded its UPI services to Sri Lanka and Mauritius. The introduction of UPI services in these nations facilitates the accessibility of UPI settlement services for Indian citizens travelling to Sri Lanka and Mauritius, as well as for Mauritian nationals journeying to India. 

The extension of RuPay card services in Mauritius, on the other hand, enables Mauritian banks to issue cards based on the RuPay mechanism in Mauritius and facilitate the usage of RuPay cards for settlements in India and Mauritius.

PM Modi made a slew of announcements in the joint statement with PM Ramgoolam, under a Special Economic Package for Mauritius, including a variety of assistance projects under grant and grant-cum-line of credit basis (LOC). PM Modi dubbed this package as an ‘investment’ into the two countries’ shared future, rather than being considered as a mere ‘assistance’ for the island nation.

“India takes pride in being a trusted primary partner in Mauritius’ development. Today, we have announced a Special Economic Package designed to support Mauritius’ needs and priorities. This will strengthen infrastructure, create new employment opportunities, and further enhance healthcare facilities,” PM Modi said.

The Special Economic Package includes infrastructure projects, healthcare enhancements, and employment opportunities. India will provide grants and a line of credit for various developments, including a new hospital, airport upgrades, and port equipment, totalling approximately $655 million.

Ramgoolam, who is on a week-long state visit to India, reached Varanasi on Wednesday and will head to Ayodhya on Friday and then attend a business event in Mumbai.