Varanasi In a significant step to strengthen bilateral economic ties, Prime Minister Narendra Modi of India met with his Mauritian counterpart, Prime Minister Navinchandra Ramgoolam, in Varanasi. A key outcome of their discussions is the mutual agreement to explore and implement trade in local currencies, a move designed to deepen bilateral trade and lessen reliance on foreign exchange.
The high-level meeting underscores the longstanding strategic partnership between India and Mauritius. The decision to promote trade in their respective local currencies – the Indian Rupee and the Mauritian Rupee – is aimed at reducing transaction costs, mitigating currency exchange risks, and promoting direct economic engagement between businesses in both countries. This initiative is expected to provide a more stable and efficient framework for trade and investment.
Prime Minister Modi emphasized the importance of fostering self-reliance and regional economic stability through such mechanisms. Similarly, Prime Minister Ramgoolam highlighted the benefits for Mauritian businesses, enabling smoother transactions with their Indian counterparts and potentially increasing trade volumes. This agreement aligns with a broader global trend of nations seeking to de-dollarize trade and build more resilient economic relationships.
Experts believe that this local currency trade agreement will not only enhance the volume and value of trade between India and Mauritius but also pave the way for closer financial integration. It is expected to particularly benefit sectors such as tourism, manufacturing, and financial services, which are crucial to both economies. The initiative is a testament to the enduring friendship and shared vision of prosperity between the two Indian Ocean nations.
