The Cabinet meeting held on April 3 took note that Indian Prime Minister Shri Narendra Modi has given assurance to his Mauritius counterpart Dr. Navin Ramgoolam on the continued stand of India of not taking any actions that would undermine benefits enjoyed by the jurisdiction under the Double Taxation Avoidance Agreement.
Following the Indian Supreme Court Judgment pertaining to the Tiger Global case that raised concerns among investors on the potential implementation of the General Anti-Avoidance Rules (GAAR) to pre-2017 investments, the Prime Minister had raised the matter with PM Modi.
On March 31, 2026 the Central Board of Direct Taxes of India issued the Income Tax (Amendment) Rules 2026, which provided further clarification on the application of the GAAR under the Indian Income Tax Act.
The new Rules specify that GAAR shall apply to arrangements made on or after April 1, 2017, while investments undertaken prior to that date will remain outside its scope, lending clarity on the treatment of legacy investments. The new Rules are expected to provide reassurance and certainty to foreign investors and private equity funds in relation to the taxation of exits from such investments.
The Cabinet also gave its nod to the signing of a Memorandum of Understanding between India and Mauritius, giving impetus to modalities for the implementation of projects funded under the Special Economic Package 2025 for USD655 million.
The agreement provides for the implementation of several projects, such as a grant of USD 215 million for projects, New Sir Seewoosagur Ramgoolam National Hospital, Ayurvedic Centre of Excellence (AYUSH), and the provision of helicopters.
The Blended Finance of USD440 million, which comprises of USD8 million grant and a Line of Credit of USD432 million, for projects such as the new Air Traffic Control Tower at the SSR International Airport, Ring Road Phase II project, and Port equipment by the Cargo Handling Corporation Ltd.
The Memorandum of Understanding will be signed by the External Affairs Minister of India, Dr S. Jaishankar, who will be on the island from April 9-11 in the context of the Indian Ocean Conference.
Following the Crisis Committee on the economic and social impacts of the Middle East conflict and its repercussions, an Inter-Ministerial Committee was chaired by the Minister of Energy and Public Utilities on April 1. The PM is chairing a meeting of the Crisis Committee on Wednesday, April 8, to assess recommendations of the Inter-Ministerial Committee.
Among other significant decisions is the inking of the Grant Fund Agreement between the Mauritius Meteorological Services and the Met Office, United Kingdom, being an initiative of the Weather and Climate Information Services (WISER) for Africa, supported by the World Meteorological Organization.
Financial support to the tune of GBP1,880,000 (approx. Rs117 million) has been earmarked for the WISER Programme for Africa, out of which Mauritius will benefit GBP80,000 (approx. Rs5 million) to implement WISER Action preliminary activities, namely co-production of climate services, capacity building of meteorologists in advanced forecasting techniques, and to help improve the early warning system.
The cabinet has also given its assent to the holding of the Mauritius Climate Investment Forum on May 6 and May 7 in Mauritius with the theme Unlocking Finance for Climate Related Projects in Mauritius”.
The Forum has several objectives such as, showcasing high-impact climate-related projects and enhance visibility on concrete actions being taken by Government to achieve the relevant sector targets and objectives as spelt out in the Government Programme 2025-2029 and the Nationally Determined Contributions 3.0; Connecting Government and private sector entities with development partners as well as multilateral and commercial banks to attract co-financing on a concessional basis, grants for blending and technical assistance for improving project implementation and adoption of appropriate technology; and leveraging on private sector investment in public goods, which will be critical in view of the constrained fiscal situation.
