Mauritius offers India 2 islands in effort to preserve tax treaty

[Ray]

If we gained control over these islands, we ought to use it as a military base, to aid Mauritius and better fulfill obligations towards helping them in times of need.

That is what is being said, though in a more diplomatic and self effacing manner - 'increase India's strategic footprint'.

 

[skumar7777]

India must grab this offer, before it goes to China. I am sure that China, USA will try to do something about it. China, USA may create disturbance inside Mauritius, fund the detractors to stop the deal from making, like some western nations did in Tamilnadu (Nuclear Project) through their Christian stooges.

Countries aren't run like corporates, where profit and loss drive the policy-making. If the proposal makes sense from strategic POV, we must loose no time and grab it. But the way our bureaucracy functions, I am sure we will waste enough time and give enough time to others to mobilize enough people against the deal inside Mauritius, like it happened in 2006.

This is a desperate attempt by FIIs in India to continue with their merry shenanigans aided by the Government of India.

Mauritius wont offer this to China or USA. Mauritius will not be a good tax haven for China - it can use Macau. Mauritius is thrice as close to India as compared to China. USA already has Diego Garcia about which we can do zilch and Mauritius cannot offer anything else. We need Mauritius in our sphere of influence but India should use its own resources to influence Mauritius without offering them tax treaties. Also, what will stop Madasgascar from claiming the same?

 

[Ray]

This thread is 2 years old. Any new developments regarding this? It almost sounds too good to be true.

6 JUL, 2012, 07.48AM IST
Mauritius offers India 2 islands in effort to preserve tax treaty
Mauritius offers India 2 islands in effort to preserve tax treaty - The Economic Times

 

[Ray]

 

[natarajan]

Mauritius offers 2 islands to preserve tax treaty Says They Can Be Turned Into Touris

Is it possible for us to turn into like deigo garcia island

How far will a country go to secure a favourable deal for itself ? Pretty far, it seems. Mauritius has offered a couple of sundrenched islands to India as part of a trade and investment deal. While the offer has been talked about for a while, Mauritius has revived it— at a time when it's very keen on persevering with the 1983 double-taxation avoidance treaty with India.
Mauritius foreign affairs and trade minister Arvin Boolell said it was up to India to use the islands to its advantage. He said the "blue economy" had great potential. India could use North and South Agalega Islands (located 1,100km north of Mauritius and having an official total area of 70 sqkm) for setting up hotels and tourist resorts, for trade, marine studies or for building a strategic presence in the Indian Ocean, official sources told TOI. North Agalega Island also has an airstrip.
In November 2006, TOI had first reported preliminary discussions between the two countries for handover of Agalega Islands.
"There is no problem on the issue," Boolell said when asked if the islands could be handed over to India.
Pressed further, he said, "We want investment to flow into Mauritius... We want India to take advantage — and it is true for other friendly countries — of the tremendous potential of the blue economy, which is the ocean economy."
The offer has been renewed at a time when investment flows into India via Mauritius were threatening to dry up following the proposal to introduce General Anti-Avoidance Rules that aimed at plugging loopholes in the double-taxation avoidance treaty by making disclosure of the source of funds mandatory. Mauritius has maintained that GAAR is creating a lot of uncertainty among investors. 'Mauritius open to change in tax treaty'
New Delhi: In 2006, when the offer of the Agalega Islands was first discussed, India was exerting pressure on Mauritius to amend the treaty and sign a Comprehensive Economic Cooperation Agreement. Subsequently, New Delhi relented amidst suggestions that India had a long link with the African country, with a sizeable population of people with Indianorigin.
"We want to develop as an ocean basket and ocean market," said Mauritius foreign affairs and trade minister Arvin Boolell. "The potential is tremendous. We work very closely with India. We should not forget that India has helped us in marking our territories, has helped us in conducting hydrographic studies and in two years we will acquire an offshore vessel from India under the line of credit that India has offered. We are doing several projects together."
While Boolell indicated that the island nation was open to amendments in the double-taxation avoidance treaty, he denied that there was any misuse.
The discussions between the two countries on the two islands, North and South Agalega Islands — which may give India strategic depth in the Indian Ocean, especially in its fight against piracy — had then focused on the development of hotels and resorts and upgrading an existing airstrip in the island into an airport.
In 2006, sources had told TOI that there was also an option to develop a port on one of the two islands.
There were, however, no discussions on how the arrangement would be structured. At the time when it was first reported by TOI, there were also some protests in Mauritius against handing over the islands to India.

source

 

[vikaskumar11233]

Re: Mauritius offers 2 islands to preserve tax treaty Says They Can Be Turned Into To

An awesome offer for India which she should not declined at any cost.A strong position in Indian Ocean and a military stronghold ,both the things we can get from it.Tourism will also help us our economy.And most important awe can make fear in the heart of other nations which are against our growth and development.

 

[Ray]

The Indian Ocean is critical to ensure sea control so as to allow unhindered passage of trade and resources to and from India.

Africa is important in this regard since Africa is abundant in resources and in the areas of agriculture and energy. It maybe noted that from 2001 when the two way trade was US $ 1 billion it has risen to US $ 50 billion in 2010 and will rise to US $ 70 billion as forecasted by 2012.

80 Indian companies have invested US $ 2.3 billion and have purchased 350,000 hectares of plantation in Ethiopia, Kenya, Senegal, Mozambique and Madagascar. India has access to energy resources such as oil, coal and uranium. 12% of India's oil requirement was imported from Nigeria.

India is Kenya's sixth largest trading partner and Tanzania's second biggest investor. India has interest in Sudan's oil and has built Sudan's largest power plant at Kosti generating 500 megawatt at US $ 350 million. In Ethiopia, a US $ 640 million has been given to develop its sugar industry and 379 companies have secured investment permit to make India the largest foreign investor.

In Madagascar India has built a listening and surveillance station. In Mauritius, the Indian Navy has been allowed to surveil and monitor the Indian EEZ. With Seychelles India has Defence Cooperation Agreement since 2003 and has its presence.

India is the fourth largest investor in Mozambique with bilateral trade growing from US $ 178 million in 2005 to US $ 427 million in 2070. India is in partnership with Mozambique in coal with a joint partnership and Mozambique has allowed Indian Navy unhindered access for patrolling the seas.

South Africa trade is on the upswing. The two way trade grew from US 4 billion in 2006 to US $ 12 billion in 2010 and expected to grow to US $ 15 billion by 2014. India also has a Defence Cooperation agreement with South Africa.

Therefore, there is a clear pattern of India emerging a strong partner of the African countries around the Indian Ocean Rim in improving trade, investment and economic growth, to include access to arable land and energy, the last two to ensure India's energy and food security.

To protect this seabound trade, it is essential to have a naval presence as much along the route as possible and this can be achieved by having naval outreach through naval bases.

In this context one should take heed to Mahan who postulated that control of the sea would grant the power to control the trade and resources. Also the fact that Battle at sea was not an end in itself; the primary objective of the fleet was to secure one's own communications and disrupt those of the enemy, not necessarily to seek out and destroy the enemy's fleet.

To this end, both in terms of strategic requirement as also trade, accepting Mauritius offer of the Agalega Islands would be prudent.

 

[Ray]

Indian Ocean Objectives

Attempting to spread its influence across the entire Indian Ocean Region, through trade and investment, diplomacy and strategic partnerships.

Upgrading relations with Africa, the Middle East and Southeast Asia; regions that hold mineral deposits and energy reserves critical to India's economic development and great power aspirations.

Positioning itself to emerge as the dominant Indian Ocean power in the decades ahead.

Ensuring that China does not gain a significant strategic foothold in the region.

Strengthening influence and control over Indian Ocean choke points through security relationships with key littoral states such as Singapore, Mauritius and Oman.

 

[amitkriit]

Re: Mauritius offers 2 islands to preserve tax treaty Says They Can Be Turned Into To

I believe another thread with same subject had been created, please merge the two.


Merged as desired.

 

[LurkerBaba]

Mauritius offers India two islands

Mauritius offers India 2 islands in effort to preserve tax treaty

NEW DELHI: How far will a country go to secure a favourable deal for itself? Pretty far, it seems. Mauritius has offered a couple of sun-drenched islands to India as part of a trade and investment deal. While the offer has been talked about for a while, Mauritius has revived it - at a time when it's very keen on persevering with the 1983 double-taxation avoidance treaty with India.

Mauritius foreign affairs and trade minister Arvin Boolell said that it was up to India to use the islands to its advantage. He said the "blue economy" had great potential. India could use North and South Agalega Islands (which are located 1,100 km north of Mauritius and have an official total area of 70 sq km) for setting up hotels and tourist resorts, for trade, marine studies, or for building a strategic presence in the Indian Ocean, official sources told TOI. North Agalega Island also has an airstrip.

In November 2006, TOI had first reported about preliminary discussions between the two countries for handover of Agalega Islands - which is closer to India than the African country -for development as a tourism and trade hub.

Mauritius offers India 2 islands in effort to preserve tax treaty - The Economic Times

 

[Apollyon]

Re: Mauritius offers India two islands

Already Posted
http://defenceforumindia.com/forum/strategic-forces/38682-mauritius-offers-india-2-islands-effort-preserve-tax-treaty.html

 

[Godless-Kafir]

Why would you turn that BEAUTIFUL island into a stupid military base? We are already getting Aircraft carriers, why on earth would we need to cut those beautiful forests and land to make it into a Monstrosity?

Congress will only ruin that Island, we should promote tourism there unlike in Andaman which we made use for nothing.

 

[Payeng]

Tax heaven as in double taxation

 

[Ray]

Why would you turn that BEAUTIFUL island into a stupid military base? We are already getting Aircraft carriers, why on earth would we need to cut those beautiful forests and land to make it into a Monstrosity?

Congress will only ruin that Island, we should promote tourism there unlike in Andaman which we made use for nothing.

You have not read my post #27?

Read it and then I would appreciate your comment.

Tourism is but only an addendum!

Sea control of sea lanes to India!

 

[sayareakd]

it has two islands so one can be used for military and other can be used for commercial purpose. BTW i wont mind going their for holidays specially when it will become part of India. Military Island can be used for tri services as is their in Andaman and Nicobar islands, lets take this opportunity and make best of it. Plus having commercial and military nearby is advantageous to Mauritius as it takes care of its military and financial needs, they can supply economies of scale for financial center.

 

[Zebra]

Published on Jul 6, 2012 by ndtv

General Anti-Avoidance Rules or 'GAAR', which was announced in the Union Budget, aims to target tax evaders, partly by stopping Indian companies and investors from routing investments through Mauritius or other tax havens for the sole purpose of avoiding taxes.

 

[Zebra]

Is this a true image? If it is true then does that islands needs any new development?
Source: Caution India: MAURITIOUS GOING TO HAND OVER TWO ISLANDS TO INDIAN NAVY FOR LISTENING POST

 

[roma]

One report says 24 km sq official figure 70 kmsq - may n ot be enough land size for the ideal case of one island being touristic and the other military , besides too close to each other and spyihg could be too easy ... i'd say india should grab the opportunity and counter -propose something more creative - use the islands for the obvious military strategic position - near prc's sea-bed minig activities at the south of madafgascar - and offer to pour money in to some other project to assist mauritius

but please , NOT the nehruvian attitude of turning away the offer - do something creative please goi

 

[Virendra]

One report says 24 km sq official figure 70 kmsq - may n ot be enough land size for the ideal case of one island being touristic and the other military , besides too close to each other and spyihg could be too easy ... i'd say india should grab the opportunity and counter -propose something more creative - use the islands for the obvious military strategic position - near prc's sea-bed minig activities at the south of madafgascar - and offer to pour money in to some other project to assist mauritius

but please , NOT the nehruvian attitude of turning away the offer - do something creative please goi

+1 ....................................

 

[Daredevil]

I think this is a bad idea. Also the island is not in a great strategic position where we face great many threats. On other hand we are loosing 1000s of crores due to the tax treaty with mauritius. Time for a reset.