Kolkata: Mauritius is inviting Indian Small and Medium Enterprises (SMEs) to set up their units in the island country to capitalise on duty-free export benefit under the African Growth and Opportunity Act (AGOA), an envoy said here. This AGOA offers duty-free shipments to the US market, presenting significant opportunities for Indian businesses, he said.
Replying to a question, High Commissioner of Mauritius to India Haymandoyal Dillum said, "Indian industries should make the most of the AGOA agreement with African countries and the US."
Dillum, who visited Kolkata on Saturday to attend a programme of the Bharat Chamber of Commerce, encouraged the leather industry to explore value-added opportunities in Mauritius to gain a competitive edge in the US marke ..
The West Bengal leather sector has been facing a slowdown in traditional markets like the US and Europe due to a slowdown in the economy after the COVID-19 pandemic.
Leather exports from West Bengal account for approximately Rs 6,000 crore. The sector is labour-intensive and often imports raw hides from African countries.
However, the AGOA programme, which began in 2000, is scheduled to expire in 2025.
Mauritius has emphasised the need to ensure its continuation.
The island country highlighted the growing potential of local currency trade with India.
Mauritius is currently piloting the INR-Mauritian Rupee trading mechanism and expects it to gain momentum in the coming years.
Dillum expressed optimism about the growth of bilateral trade using local currencies.
Mauritius banks have opened Vostro accounts with Indian banks, and central banks of both countries are closely monitoring the success of this initiative, he said.
A Vostro account is an account held by a domestic bank on behalf of a foreign bank in the domestic bank's currency.
In February, Mauritius adopted the Unified Payment Interface (UPI) payment system.
Source Name : Economic Times