In a recent initiative, Mauritius has invited Indian small and medium enterprises (SMEs) to establish units in the country to leverage the duty-free export benefits available under the African Growth and Opportunity Act (AGOA) [42bc0b1a]. High Commissioner Haymandoyal Dillum emphasized the importance of AGOA for Indian industries looking to export to the United States, particularly in light of the act's impending expiration in 2025 [42bc0b1a]. This invitation comes as the West Bengal leather sector, valued at Rs 6,000 crore, faces significant challenges in traditional markets following the COVID-19 pandemic [42bc0b1a].
Mauritius is actively promoting its role as a gateway for Indian SMEs to access the US market through AGOA, which has been instrumental in boosting trade and investment between the US and sub-Saharan Africa since its inception in 2000 [41ae0887][42bc0b1a]. The Mauritian government is also piloting trading in Indian Rupees (INR) and has opened Vostro accounts with Indian banks to facilitate smoother transactions [42bc0b1a]. Additionally, Mauritius adopted the Unified Payment Interface (UPI) in February 2024 to enhance its financial connectivity with India [42bc0b1a].
The AGOA Renewal and Improvement Act, introduced by US Senators Chris Coons and James Risch, aims to modernize the program and ensure it continues to benefit countries like Mauritius and India [bf033a8e]. US officials have highlighted AGOA's positive impact on economic growth and job creation in sub-Saharan Africa, reinforcing the need for continued support and enhancement of the program [41ae0887]. As Mauritius advocates for the continuation of AGOA, it positions itself as a strategic partner for Indian SMEs looking to expand their export capabilities [42bc0b1a].