Mauritius is encouraging Indian Small and Medium Enterprises (SMEs) to establish operations in the island nation to take advantage of duty-free export benefits available under the African Growth and Opportunity Act (AGOA). The AGOA provides opportunities for duty-free shipments to the U.S. market. High Commissioner of Mauritius to India, Haymandoyal Dillum, highlighted the potential benefits of the AGOA agreement for Indian businesses during a recent visit to Kolkata. Speaking at an event organized by the Bharat Chamber of Commerce, Dillum urged Indian industries, particularly those in the leather sector, to explore opportunities in Mauritius to enhance their competitiveness in the U.S. market.
The leather industry in West Bengal, which has been experiencing a slowdown in traditional markets like the U.S. and Europe, could benefit significantly from this initiative. West Bengal’s leather exports total approximately Rs 6,000 crore and are heavily reliant on imported raw hides from African countries. The AGOA program, which began in 2000, is set to expire in 2025. Mauritius is advocating for its continuation and is also focusing on increasing local currency trade with India. The island nation is piloting a trading mechanism involving the Indian Rupee (INR) and the Mauritian Rupee, which is anticipated to grow in the coming years.
Mauritius has established Vostro accounts with Indian banks, and both countries’ central banks are closely monitoring the progress of this initiative. Additionally, Mauritius adopted the Unified Payment Interface (UPI) system in February to facilitate transactions.
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