Mauritius is responding to the possible introduction of anti-avoidance rules in India by forging new partnerships elsewhere
The Indo-Mauritius Double Taxation Avoidance Convention, signed in August 1982, was not the first such agreement that Mauritius entered into. Agreements with France, Germany and the UK predate it. But it was the double taxation avoidance agreement (DTAA) with India that set the island nation on the road to becoming a financial services centre of repute.
Today the financial services sector in Mauritius contributes a little over 10% of its GDP. One in 900 of the 1.3 million people in the country is an accountant; one in 2,500 is a lawyer, and around 26,000 companies registered in Mauritius channel investments into India and other countries.
About 40% of foreign direct investment into India since 2000 has been routed through entities in Mauritius. Singapore, which is the second-most popular route into India, accounts for less than 10%.