India and Mauritius to Promote Trade in Local Currency, Reducing Dependence on the Dollar

During a meeting in Varanasi on 11 September, Prime Minister Narendra Modi and Mauritius Prime Minister Navinchandra Ramgoolam discussed strengthening bilateral relations and charted a new economic direction. Both leaders agreed to promote mutual trade using their local currencies—Indian Rupees in India and Mauritius Rupee in Mauritius—rather than the US dollar. This move signals a shift in global economic dynamics, with smaller trusted partner countries taking steps to reduce dependence on the dollar by transacting in their own currencies.

PM Modi described the meeting not as a formal event but as a spiritual and emotional connection, highlighting that the relationship between India and Mauritius goes beyond partnership and resembles a family bond. Several major projects were also agreed upon, including the development of the Chagos Marine Protected Area, expansion of the SSR International Airport ATC tower, and improvement of highways and ring roads. Modi emphasized that this package is not mere aid but an investment in the shared future of both nations. Efforts will continue to facilitate trade in local currency, building on last year’s launch of UPI and RuPay cards in Mauritius.

Additionally, India will assist Mauritius in constructing key facilities such as a 500-bed AYUSH Centre of Excellence, a veterinary hospital, a veterinary school, and the ATC tower at SSR International Airport. PM Modi reiterated the common goals of both countries in the Indian Ocean: to ensure it remains independent, secure, and prosperous. He congratulated Mauritius on regaining sovereignty over the Chagos Islands from Britain, reaffirming India’s long-standing opposition to colonialism and commitment to supporting Mauritius’ sovereignty.