{"id":24952,"date":"2023-01-16T09:08:37","date_gmt":"2023-01-16T09:08:37","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/all-news\/the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2"},"modified":"2023-01-16T10:08:14","modified_gmt":"2023-01-16T10:08:14","slug":"the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2","title":{"rendered":"The $100 million line of credit from India: Not about Mauritius but&#8230; larger Indian regional ambitions"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Mauritius. <\/strong><\/span>A $100 million line of credit offered by India to Mauritius back in February to purchase defence equipment is in the news again as well as on social media.<\/p>\n<p>Here is why the money offered by New Delhi is not so much about Mauritius but is more about India\u2019s own larger ambitions for its arms export industry and the Indian Ocean region. The $100 million offer<\/p>\n<p>The $100 million line of credit to buy defence equipment offered to Mauritius by the Indian government via its EXIM bank back in February is back in the news as well as making the rounds on social media within the country. This offer was accompanied by another \u2013 for Mauritius to use a Dhruv helicopter and a Dornier plane for two years.<\/p>\n<p>\u201cA line of credit is pretty much the same thing as a loan, but there are differences; a line of credit is much more flexible and normally there is a grant element to it,\u201d former foreign secretary Vijay Makhan explains to l\u2019express.<\/p>\n<p>Unlike a loan, a receiving state can choose when to use it, or whether to borrow from this facility at all. In the past, lines of credit have lapsed when the Mauritian government has been unwilling, or unable, to use them.<\/p>\n<p>One example was a Rs2.5 billion line of credit offered by the Agence franc\u0327aise de de\u0301veloppement between 2012 and 2018 to help finance the construction of Rivie\u0300re-des-Anguilles dam.<\/p>\n<p>That facility was never used and simply lapsed. Therefore, there is a key difference between the $100 million facility offered by New Delhi and a loan. The other major element to keep in mind is that this line of credit is not something unique to Mauritius.<\/p>\n<p>At the same time the $100 million offer was made to Mauritius, the Indian government also offered the Maldives government a similar line of credit of $50 million for its own defence purchases.<\/p>\n<p>Eye on strategy It is not hard to see why Mauritius is one of the countries tapped by India to showcase its regional ambitions. Even before India developed its ambitions to become a major global arms exporter, Mauritius was already dependent on New Delhi for its security.<\/p>\n<p>After independence and the British exit, Mauritius swapped one security guarantor for another. In 1974, it signed a defence agreement with India, which among other things mandated that the heads of the Mauritius Coast Guard and the Mauritius Police Helicopter Squadron would be an Indian navy officer and an air force officer respectively.<\/p>\n<p>That has remained unchanged to date. India also gave Mauritius a ship to set up its coast guard, the Amar. That defence tie-up between Port-Louis and New Delhi only deepened after the Lal Dora episode in 1983.<\/p>\n<p>According to Australian researcher David Brewster and India\u2019s former Naval Intelligence director Ranjit Pai, fearing a coup against the Sir Anerood Jugnauth\u2019s government by the MMM in 1983, then-Indian prime minister Indira Gandhi began preparations for a military landing in Port-Louis.<\/p>\n<p>She was also spooked by reports that Soviet ambassador in Seychelles Mikhail Orlov had approached Jugnauth\u2019s political opponents promising to reorganize the Mauritian security services and offering to supply patrol boats for the Mauritian coast guard.<\/p>\n<p>The whole episode ended in fiasco after the 54th Indian army battalion marched from Hyderabad to Mumbai without informing the Indian navy supposed to bring them to Mauritius on the Mysore ship.<\/p>\n<p>The troops languished in an army base waiting to be taken to Mauritius until the whole plan came apart as the Indian army and navy could not decide who was calling the shots and the operation plans had been leaked to the US embassy in New Delhi.<\/p>\n<p>Though it proved to be an embarrassing fiasco for New Delhi, the episode underscored for Mauritius that India was its ultimate security guarantor. Following the 1983 election, Sir Anerood Jugnauth\u2019s then-government asked New Delhi to send Indian Army Major General J.<\/p>\n<p>N Taimini as national security adviser to the Mauritian government. Another tradition that has remained unchanged since then. \u201cThis relationship between India and Mauritius means that Mauritius has always been a very responsive partner for India.<\/p>\n<p>It has always been like that,\u201d says Boolell, \u201cIndia wants to be a major power and Mauritius has always been a facilitator of that; there are certain things that India expects Mauritius to do.<br \/>\nSome of the foreign policy verities that Port-Louis is mandated to do is back India\u2019s bid for a permanent seat on the UN Security Council or keep an eagle eye out for New Delhi\u2019s strategic priorities.<\/p>\n<p>Such as in 1996 when Mauritius overruled its own cabinet decision to vote for a UN resolution on the Comprehensive Test Ban Treaty after New Delhi signalled its displeasure with the resolution, which it felt targeted its nuclear programme. 158 countries voted for the resolution, India, Bhutan and Libya voted against while Mauritius, Cuba, Syria, Tanzania and Lebanon abstained.<\/p>\n<p>The decision also led to a brief political crisis between the Labour Party and the MMM, who were then in an alliance. All this is to say that Mauritius has always supported larger Indian ambitions.<\/p>\n<p>Hence, it is not hard to see why today when India wants to recalibrate its strategy in the region, it naturally looks to Mauritius as an element in that. The money offered to Port-Louis has less to do with Mauritius, and more to do with India\u2019s own ambitions in the Indian Ocean region.<\/p>\n<p>For years, wary of China and Russia\u2019s growing clout within the region and encouraged by alreadyestablished powers, such as the US and France, India has sought to counter China\u2019s deep pockets by trying to position itself as a foremost security provider in this region.<\/p>\n<p>As early as 2013, then-Indian prime minister Manmohan Singh declared, \u201cOur defence cooperation has grown and today we have unprecedented access to high technology, capital and partnerships.<\/p>\n<p>We have also sought to assume our responsibility for stability in the Indian Ocean region. We are well-positioned, therefore, to become a net provider of security in our immediate region and beyond.<\/p>\n<p>\u201d Much the same thinking has been reproduced in current Narendra Modi\u2019s 2016 Security and Growth for All in the Region (SAGAR) strategy. Part of this strategy is for New Delhi to court smaller states in the region.<\/p>\n<p>\u201cIndia has been pulling in the small island developing states in the region to try to counter China and Russia,\u201d says former foreign minister Arvin Boolell, \u201cWe\u2019re going back to the bad old days of the cold war, but this time it is not ideological, it is more complex with a lot of other issues like piracy and illegal fishing thrown in and Mauritius is finding where it fits in this new pattern in the region.<\/p>\n<p>\u201d How New Delhi has been trying to pull smaller regional states into its orbit was on display earlier this month at the Colombo Security Conclave, established in 2011 bringing together India, Sri Lanka and Maldives to jointly develop their maritime forces, carry out joint exercises and host regular meetings of their national security advisers. At its meeting this month, the trilateral grouping decided to invite Mauritius, Seychelles and Bangladesh to join as well.<\/p>\n<p>Something that New Delhi has long pushed for but was not possible until now because of recent tensions between India and Maldives\u2019 Yameen government over the latter\u2019s pro-China tilt as well as anger in Sri Lanka over Mauritius\u2019 decision in 2013 to boycott a Commonwealth Heads of Government Meeting in Colombo to protest the Buddhist-majority country\u2019s treatment of its predominantly Hindu Tamil minority.<\/p>\n<p>\u201cThis is the larger picture emerging and it\u2019s not just about Mauritius and India, but a strategy being played out for the whole region,\u201d states Makhan.<\/p>\n<p>So, what does this have to do with the $100 million line of credit for defence materials offered to Mauritius this year? This is one of the ways New Delhi is looking to strengthen its regional influence by growing its own indigenous arms industry and go from the world\u2019s second-largest arms importer (just behind Saudi Arabia) to emerge as a major arms exporter.<\/p>\n<p>In this, it wants to emulate other states such as China, South Korea, Turkey, Israel and Brazil. And the Indian Ocean region is a good place to start drumming up business.<\/p>\n<p>Currently, according to the Stockholm International Peace Research Institute (SIPRI), India accounts for 9.5 percent of total global arms imports, but only 0.2 percent of its exports between 2016 and 2020.<\/p>\n<p>Therefore, one of the conditions attached to the $100 million line of credit to Mauritius is that Port-Louis buys 75 percent of defence equipment under the facility from Indian defence manufacturers.<\/p>\n<p>At the same time, as India was offering this facility to Mauritius and Maldives back in February, Indian defence minister Rajnath Singh indicated India\u2019s willingness to supply weapons systems to regional countries during an Indian Ocean Region Defence Minister\u2019s Conclave held in India: \u201cIndia is ready to supply various types of weapons systems to IOR countries.<\/p>\n<p>\u201d According to Makhan, \u201cin Mauritius we tend to react to such offers emotionally forgetting that this is part of a much grander chessboard.<\/p>\n<p>\u201d The line of credit offered to Mauritius, for Boolell, falls in line with India\u2019s regional ambitions, \u201cThey have always said that this is their backyard and this line of credit to Mauritius is part of their agenda to give them more visibility and to send a strong signal.<\/p>\n<p>\u201d Carrots and sticks If offers of Indian weaponry is a sign of New Delhi\u2019s favour within the region, recent years have shown that they can also be a sign of fraying ties. One example is the story of two Dhruv helicopters supplied by India to Maldives in 2010 and 2015.<\/p>\n<p>As ties between India and Maldives became strained under the previous Abdulla Yameen government, seen as closer to China than Delhi, the Maldivian government demanded in 2018 that India take back the two helicopters manned by Indian crews.<\/p>\n<p>The crisis was ultimately resolved with Yameen\u2019s replacement that year by Ibrahim Mohamed Solih, seen as pro-New Delhi. Although the helicopters stayed in Maldives, Solih is still struggling to contain anti-India sentiment within his country.<\/p>\n<p>Meanwhile that same year, as an agreement between Seychelles under the previous Danny Faure government and India for the construction of a military base on Assumption Island came under criticism, New Delhi attempted to salvage the agreement by offering a $100 million line of credit to Seychelles for infrastructure and defence purchases and gifted a Dornier plane to Seychelles.<\/p>\n<p>That, however, did not stop local opposition from forcing the Faure government to axe the Assumption Island deal with India, fraying ties between New Delhi and Seychelles.<\/p>\n<p>This why when India offered lines of credit in February this year; it did so to Mauritius (which has pretty much implemented its own deal over Agalega seamlessly) and Maldives (under the friendlier Solih government) but did not offer anything to Seychelles.<\/p>\n<p>\u201cThis is not surprising, Solih has basically reversed Yameen\u2019s pro-China policy and now Maldives and India have become close again; this is also signalling to Seychelles about how they could benefit by returning to the table as well,\u201d says Boolell. The showcase<\/p>\n<p>Aside from traditionally enjoying a long defence and strategic relationship with New Delhi, another reason why Mauritius figures as one of the states to receive the line of credit offer is because it has long depended on and served as a showcase for Indian defence equipment.<\/p>\n<p>\u201cUsually this has been about helicopters and patrol vessels or replacing worn defence equipment,\u201d says Makhan. But the way that Mauritius has received such equipment has changed over the decades.<\/p>\n<p>In the 1970s, after the Amar, New Delhi donated nine patrol boats to Mauritius, replacing five of them in 2000 with similar boats built in its shipyards in Cochin. It gave another patrol boat to the Mauritian coast guard in 1993 (the Guardian), and an interceptor boat (the Observer) in 2001.<\/p>\n<p>The only other boats received by the Mauritian coast guard not coming from India were two Zhuk-class patrol boats (the Rescuer and the Retriever) from former USSR in 1990.<\/p>\n<p>That same year, India transferred a Dornier plane, followed by another in 2004. Until then, all these coast guard ships were second-hand vessels from the Indian armed forces.<\/p>\n<p>. More recently, however, the supply of Indian-made defence equipment to Mauritius has changed.<\/p>\n<p>In 2009, the Indian government offered a grant for Mauritius to buy a Dhruv helicopter, a third Dornier plane in 2016 through a $16 million line of credit and donated two refurbished Chetak helicopters that same year.<\/p>\n<p>In 2009, New Delhi gave Mauritius a grant to buy a coastal radar system from Indian company Bharat Electronics, dotted in Grand-Gaube, Pointe-du-Diable, Gris-Gris, Le Morne, Albion, Rodrigues, Les Salines, Agalega and St.<\/p>\n<p>Brandon, along with five other spots in Signal Mountain, QuarterMilitaire, Henrietta, Surinam and Pointe-du-Diable. But it was the Barracuda deal that cemented Mauritius\u2019 place as official showcase for Indian defence products.<\/p>\n<p>In 1996, Mauritius bought a new ship (the Vigilant) from the Asmar shipyard in Chile, but India was not far behind. In 2011, the Mauritian government signed a deal to buy the Kora-class ship (the Barracuda) from Garden Reach Shipbuilders and Engineers in Kolkata, India.<\/p>\n<p>The $58.5 million deal was financed through a $10 million grant from India and a $48.5 million loan from India\u2019s EXIM bank. The deal was lauded and promoted in New Delhi as the first foreign purchase of an Indian-made warship.<\/p>\n<p>That was swiftly followed by another, again via a $27 million loan from India\u2019s EXIM bank for 10 interceptor boats and two patrol vessels (the Victory and the Valiant) from Goa Shipyard Limited in 2014.<\/p>\n<p>According to SIPRI, between 1990 and 2020, 64 percent of Mauritian defence spending was done buying Indian wares. It is a profitable relationship: \u201cMauritius gets what it wants in terms of defence equipment and India sees Mauritius helping fulfil its security and strategic goals,\u201d says Makhan.<\/p>\n<p>In this case, advertising the benefits of good relations with New Delhi and affording it an opportunity to advertise its defence wares. So, India\u2019s extending once again a line of credit for yet more defence equipment is neither new, nor surprising.<\/p>\n<p>Neither should it be a mystery about why India is looking at Port-Louis as one of the countries to help fulfil its ambition to become a regional security and defence supplier.<\/p>\n<p>The question now is: while India is willing to extend the $100 million line of credit, is the Mauritian economy battered by Covid-19 \u2013 with government debt climbing to 85.9 percent of GDP by last June \u2013 in a position to add yet more to its loan books and take up the offer? \u201cThe thing that has to be debated is: CAN we afford this?\u201d asks Makhan. Regardless of the strategy behind it, Boolell reminds us that \u201cthere is after all, no such thing as a free lunch\u201d.<br \/>\n<img loading=\"lazy\" decoding=\"async\" width=\"625\" height=\"506\" class=\"alignnone wp-image-24949 size-full\" src=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_1.jpg\" srcset=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_1.jpg 625w, https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_1-300x243.jpg 300w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><br \/>\n<img loading=\"lazy\" decoding=\"async\" width=\"813\" height=\"451\" class=\"alignnone wp-image-24950 size-full\" src=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_2.jpg\" srcset=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_2.jpg 813w, https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_2-300x166.jpg 300w, https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_2-768x426.jpg 768w, https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postMediaimg_3_2-696x385.jpg 696w\" sizes=\"auto, (max-width: 813px) 100vw, 813px\" \/><\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/mauritius\">Mauritius<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Mauritius. A $100 million line of credit offered by India to Mauritius back in February to purchase defence equipment is in the news again as well as on social media. Here is why the money offered by New Delhi is not so much about Mauritius but is more about India\u2019s own larger ambitions [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":24951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,11],"tags":[233,245,599,241],"class_list":["post-24952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-photo","tag-africa-press","tag-africa-press-mauritius","tag-economy","tag-mauritius"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The $100 million line of credit from India: Not about Mauritius but... larger Indian regional ambitions - Mauritius<\/title>\n<meta name=\"description\" content=\"A $100 million line of credit offered by India to Mauritius back in February to purchase defence equipment is in the new ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The $100 million line of credit from India: Not about Mauritius but... larger Indian regional ambitions\" \/>\n<meta property=\"og:description\" content=\"A $100 million line of credit offered by India to Mauritius back in February to purchase defence equipment is in the new ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2\" \/>\n<meta property=\"og:site_name\" content=\"Mauritius\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-16T09:08:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-16T10:08:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mauritius\/sites\/61\/2023\/01\/postQueueImg_1673847803.82.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"620\" \/>\n\t<meta property=\"og:image:height\" content=\"330\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/all-news\/the-100-million-line-of-credit-from-india-not-about-mauritius-but-larger-indian-regional-ambitions-2\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mauritius\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"The $100 million line of credit from India: Not about Mauritius but&#8230; 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