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CONTRIBUTION OF INDIAN DIRECT INVESTMENT ON MAURITIAN SUSTAINABLE DEVELOPMENT: AN EXPLORATION THROUGH SELECT CASE STUDIES

Corresponding and presenting author: Dr Satabdee Banerjee (satabdeebanerjee@nndc.ac.in)

Mentor and Co-author: Dr Verena Tandrayen-Ragoobur

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BACKGROUND OF THE STUDY

Mauritius received one of the biggest shares of overseas direct investment worth MUR 11,724 million from India, which represents 4.8 per cent of the total foreign direct investment (FDI) inflows into the country

India received the largest share, almost 27 per cent of FDI from Mauritius since 2000

  • Double Taxation Avoidance Agreement (DTAA)

  • Absence of Capital Gains Tax

  • Introduction of Sustainable Development Goals (SDGs) 2030

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RELEVANT LITERATURES

Aust, Morais and Pinto (2019) found that FDI leads to the achievement of higher SDG scores, barring SDG 13 on Climate Action in the African countries.

The study of Dhahri and Omri (2020) found a positive and statistically significant impact of FDI in achievement of SDG 1 and 2, ie., in poverty reduction and food security and agricultural production

Suehrer (2019) highlighted the need for the foreign direct investors to shift from pure profit-oriented approach to an impact-oriented approach for the attainment of SDGs.

Sauvant (2019) put thrust on the importance of promoting sustainable FDI through sustainable investment agreements.

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OBJECTIVES OF THE STUDY

  • The present study aspires to examine the nature and quality of Indo-Mauritian FDI linkages by investigating into the impact of Indian capital on sustainable development of Mauritius.

  • This should be attempted through few firm level case studies taking into account the economic, social, and environmental dimensions of the investment.

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SELECTED SUSTAINABLE DEVELOPMENT GOALS (SDGS)

SDG 8: Decent work and Economic Growth (growth linkages and supply chain)

SDG 9: Industry, Innovation and Infrastructure

SDG 10: Reduced Inequalities – (gender inequalities)

SDG 11: Sustainable Cities and Communities and

SDG 12: Responsible Consumption and Production

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RESEARCH METHODOLOGY

Around 643 Mauritius-based firms received FDI from India since July 2007 to December 2021

Out of them 86 firms received FDI more than USD 100 million

Among them 33 firms received FDI in the form of equity capital

31 of them were wholly-owned subsidiaries of Indian companies

Among these, 5 prominent units operational at different industrial sectors of Mauritius and in receipt of bulk FDI influx from India over the years, will be attempted to study

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5 units operational at different industrial sectors and in receipt of bulk FDI influx from India over the years

31 wholly-owned Indian subsidiaries

33 firms received FDI in the form of equity capital

86 firms received FDI more than USD 100 million

643 Mauritius-based firms received FDI from India since July 2007 to December 2021

DIAGRAMMATIC REPRESENTATION OF SELECTION OF SAMPLE UNITS

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RESEARCH METHODOLOGY

  • Data for this purpose would be collected using both secondary and primary sources.

  • Annual reports and other relevant published information will be collected from the respective organizational websites.

  • A survey by way of personal interviews of authorized officials of the respective firms will be undertaken through a structured questionnaire to decipher the different characteristics and activities of these firms supporting Mauritian sustainable economic, social and environmental development.

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Q & As