India, Mauritius to Strengthen Trade Ties with Local Currency Use: PM Modi

Rapid Summary

• Prime Minister Narendra Modi held discussions with Mauritian counterpart Navinchandra Ramgoolam in Varanasi on September 11, 2025.
• India and Mauritius announced plans to work towards bilateral trade in local currencies.
• PM Modi emphasized the shared priority of ensuring a free, open, secure, stable, and prosperous Indian Ocean.
• Commitment was reiterated to strengthening security and maritime capacity in Mauritius’ Exclusive Economic Zone (EEZ).
• Mr. modi congratulated Mauritius on the Chagos agreement with the UK-handing sovereignty of Diego Garcia and other islands back to Mauritius-calling it a historic victory for decolonization efforts.
• The U.K., under the deal signed earlier this year, retains security control over Diego Garcia while ceding sovereignty after more than 50 years.
• Navinchandra Ramgoolam’s ongoing state visit from September 9-16 includes stops at Ayodhya and Tirupati; this marks his first overseas bilateral trip during his current term as Prime Minister.

Indian Opinion Analysis

The discussions between India and Mauritius deepen historical ties rooted in cultural connectivity and mutual trust. Efforts to facilitate trade using local currencies signal an innovative approach toward reducing foreign exchange dependencies-a move that could empower economic independence while bridging financial ecosystems of smaller island nations like Mauritius with large economies like India.

The focus on maritime security underscores India’s commitment as a net security provider for the Indian Ocean region-a strategic area critical for global commerce. This would further bolster regional stability against geopolitical challenges.

The Chagos agreement represents meaningful progress in international law concerning decolonization efforts.India’s steadfast support aligns well with its broader advocacy against colonial remnants worldwide. Though, continued UK control over Diego Garcia highlights lingering sensitivities tied to military-strategic dynamics.

Ramgoolam’s multidimensional visit reflects growing bilateral enthusiasm beyond political agreements by incorporating cultural diplomacy through visits to Ayodhya and Tirupati-suggesting opportunities for bolstered soft-power exchanges moving forward.

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