Mauritius Offers Indian SMEs Duty-Free Export Benefits Under AGOA

Mauritius is actively inviting Indian Small and Medium Enterprises (SMEs) to establish their operations on the island in order to take advantage of the duty-free export opportunities provided by the African Growth and Opportunity Act (AGOA). This initiative was highlighted during a recent visit to Kolkata by Haymandoyal Dillum, the High Commissioner of Mauritius to India.

The AGOA program, which has been in effect since 2000, allows for duty-free shipments to the United States, creating significant market opportunities for Indian businesses.

Dillum emphasized the importance of Indian industries utilizing the AGOA agreement to strengthen their presence in both African and American markets, stating, “Indian industries should make the most of the AGOA agreement with African countries and the US.”

During his visit to attend an event organized by the Bharat Chamber of Commerce, Dillum specifically encouraged the leather industry to investigate value-added opportunities in Mauritius to secure a competitive edge in the US market.

The leather sector in West Bengal, which generates exports worth approximately ₹6,000 crore, has been grappling with a decline in demand from historic markets like the US and Europe, further exacerbated by the economic downturn following the COVID-19 pandemic.

Given that the sector is heavily reliant on imported raw hides from African countries, the AGOA framework offers a timely opportunity for growth and expansion.

As the AGOA program is slated to expire in 2025, Mauritius is advocating for its continuation to further enhance trade relations.

Additionally, Dillum highlighted the increasing potential for trade using local currencies, noting that Mauritius is currently piloting a trading mechanism involving the Indian Rupee and the Mauritian Rupee.

He expressed optimism about the prospects of bilateral trade growing through this local currency trading initiative, which is being closely monitored by both nations’ central banks.

Mauritius has already set up Vostro accounts with Indian banks to facilitate this process.

In another step towards strengthening economic ties, Mauritius adopted the Unified Payment Interface (UPI) payment system in February, signaling a concerted effort to streamline financial transactions between the two countries.

As Mauritius positions itself as a hub for Indian SMEs looking to expand into African and American markets, the call to action is clear: take advantage of the AGOA program while it remains in effect and explore new avenues for growth amidst changing global economic conditions.

Source: Business Standard