A

Global / Country Study and Report

On
“PESTLE ANALYSIS OF MAURITIUS
And
ANALYSIS OF MAJOR INDUSTRIES AVAILABLE IN
MAURITIUS”
Submitted To:
Gandhinagar Institute of Technology
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University

UNDER THE GUIDANCE OF

PROF. Milan Shah

PROF. Nehal Shah
PROF. Shruti Dave
PROF. Ratna Trivedi
PROF. Mihir Chavada
PROF. Vibha Sharma
PROF. Jaydeep Jethavat

(Gandhinagar Institute of Technology)

Submitted By:

[Batch: 2011-2013]
MBA SEMESTER III & IV
----------------------------------------------------------------------------------------
Gandhinagar Institute of Technology
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
May,2013
 Students’ Declaration

We Batch [2011-2013] hereby declare that report for global country study report
entitled “PESTLE ANALYSIS OF VARIOUS SECTORS OF MAURITIUS and
ANALYSIS OF MAJOR INDUSTRIES AVAILABLE IN MAURITIUS” is a result of
our own work and our indebtedness to other work publication, references, if any,
have been duly acknowledged.

Place: Moti Bhoyan

Date:

II
 Institute’s Certificate

“Certified that this Global /Country Study and Report Titled “PESTLE ANALYSIS OF
VARIOUS SECTORS OF MAURITIUS and ANALYSIS OF MAJOR INDUSTRIES
AVAILABLE IN MAURITIUS” “is the bonafide work of Batch [2011-2013], who
carried out the research under our supervision. We also certify further, that to the
best of our knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.

(Countersigned by the HOD)

Prof. Milan S. Shah

(HOD-MBA Dept.)

Signature of the Faculty Guide

PROF. Milan Shah

PROF. Nehal Shah
PROF. Shruti Dave
PROF. Ratna Trivedi
PROF. Mihir Chavada
PROF. Vibha Sharma
PROF. Jaydeep Jethavat

Gandhinagar Institute of Technology

MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
May,2013

III
 Preface

The aim behind to prepare is to gain practical knowledge through experience. To

attain practical knowledge observation and understanding of the actual work
situation and environment is must. In the report present here, sincere efforts have
been made by us to mention the knowledge we attained during the research.

Mauritius is an tourism island which is developing very fast. The economic status of
maurius states that by Comparing the inflation rate of the two countries the inflation
rate in Mauritius was 6.5% in 2011 compared to india which was 8.9% in 2011. uring
the year 2011 . The mortality rate of mauritius is 6.73 currenty. Estimated
unemployment rate is 8.2%. The main industry in the country is food processing and
in which the mainly suger mining industry , textiles industry, clothing industry,
chemicals industry , metal products, transport equipments, nonelectrical machinery,
and tourism sector.

Mauritus is an stable economy democracy is followed over there. There are various
polices related to investment are followed like forigen investment policy, monatory
policy, fiscal policy etc…

The social culture of Mauritius consist of Franco Mauritians, Indo Mauritians, and
Sino Mauritians. Official language of Mauritius is English and French. There are
various religion in Mauritius but Hunduism, Muslimism and christanity are very
famous over there.

The vison of it industry is based on a deliberate movement to develop substantially

the national information technology capability of Mauritius. It needs a far-reaching
use of IT in the economy and within the society of Mauritius.
The Ecology of Mauritius states that Mauritius depends more on exports than on
inports.

According to the legal environment of maurituis there are various trade unions.
Economic environment has been set up in Mauritus which facilitates investors to
invest in the country. There are various institutional framework and various trade
polices which are to be followed.

Industries are playing major role in any countries. Here also in the Mauritius there
are no. of industries like sugar industry, tea industry, textile industry, Fishery
industry, financial industry, Banking Industry, Agriculture Industry, Tourism Industry
and so on. All these industries are playing major role in the financial condition of
Mauritius. But as per our work we are contributing for some of the industries among

IV
that. We are analysing some of the brightest industries in Mauritius which are known
as upcoming growth industry in Mauritius.

As per our research we can know that the tourist industries are very well developed
in Mauritius. And the market of tourist industries are open for outside so its fruitful for
invest in that industry or its giving some higher facilities than other nation. The
tourism sector is supervised by the Ministry of Tourism and Leisure, the Mauritius
Tourism Promotion Authority (MTPA) promotes Mauritius by conducting advertising
campaigns, participating in tourism fairs and organizing, in collaboration with the
local tourism industry, promotional campaign and activities in Mauritius and abroad.
The Tourism Authority (TA) is responsible for licensing, regulating and supervising
the activities of tourist enterprises, pleasure crafts, skippers and canvassers.

If we talking about the fishery industry than its also developed very well. The
government of Mauritius developed a strict rule for the fishery industry but if any
entrepreneur enter in this business than its helpful for them to earn a high amount of
money.

Agriculture industries are developed in mauritius. In Mauritius about 40 per cent of

the island's surface is being used for cultivation and out of which almost 90 per cent
is sugar cane, the rest is tea, tobacco and food crops. Sugar cane cultivation was the
main agricultural activity in Mauritius since many years.

We are also analysed tea industry in mauritius they developed a tea seactor very
well they known for their different types of tea in the mauritius. Around 680 hectares
lands are under cultivation for tea. And the main benefit is that they developed latest
technology for their tea industry.

We analyse that the policy of the mauritius for financing sectors are very strong so
many banking sectors are jump into their economy. Many international banks are
their in the mauritius.

Textile industries are developed a lot in the mauritius because they developed
different types of materials in the market

V
 ACKNOWLEDGEMENTS

We have been successful to handle this project only due to the blessings of “GOD”
and “OUR PARENTS”.

It is a pleasure to recognize the many individuals who helped us in all phases of the
project. Without their help, we would not have finished this project, or even started it.
Achievement of a goal is not a one person’s job.

It is obtained by guidance & co-operation of others. Our sincere thanks to Dr N. M.

Bhatt., Director of Gandhinagar Institute of Technology, Gandhinagar and Mr. Milan
S. Shah, HOD-MBA for his moral support and constant encouragement without
which it was not possible for me to complete the project work successfully.

We take this opportunity to express my sincere gratitude to all the faculty members
of Department of Management, Gandhinagar Institute of Technology, Gandhinagar
whose advice and supervision had helped in the completion of the project work. We
are also very thankful to PROF. Milan Shah, PROF. Nehal Shah, PROF. Shruti
Dave, PROF. Ratna Trivedi, PROF. Mihir Chavada, PROF. Vibha Sharma, PROF.
Jaydeep Jethavat (Internal Guides), Prof. at Gandhinagar Institute of Technology,
Gandhinagar for guiding us in completing our project successfully.

Place: Moti Bhoyan

Date:

VI
 Table of content

Sr. No. PARTICULARS Page

No.

 STUDENTS’ DECLARATION II

 CERTIFICATE OF INSTITUTE III

 PREFACE IV

 ACKNOWLEDGEMENTS VI

 TABLE OF CONTENTS VII

Part-1 (SEM-3) PESTLE ANALYSIS OF VARIOUS SECTORS

OF MAURITIUS

 1 POLITICAL CONDITION OF MAURITIUS 1

 ECONOMIC CONDITION OF MAURITIUS 15

2 AND OVERVIEW OF FINANCIAL
MARKETS

 SOCIAL ENVIRONMENT AND TRADING 31

3
PARTNERS OF MAURITIUS

 TECHNOLOGICAL ENVIRONMENT AND 51

4
INDIA IMPORT FROM MAURITIUS

 ECOLOGY OF MAURITIUS AND INDIAN 66

5
EXPORT TO MAURITIUS

 LEGAL ENVIRONMENT, WTO AND 74

6 OTHER TRADE UNIONS AND ITS IMPACT
ON COMMERCE AND INDUSTRY

Part-2 (Sem-4) ANALYSIS OF MAJOR INDUSTRIES

AVAILABLE IN MAURITIUS

 1 TOURISM INDUSTRY 87

 2 FISHERY INDUSTRY 103

VII
 3 AGRICULTURAL INDUSTRY 121

 4 TEA INDUSTRY 138

 5 BANKING INDUSTRY 154

 6 TEXTILE INDUSTRY 171

VIII
 POLITICAL
ENVIRONMENT AND
INDIA IMPORT FROM
MAURITIUS

1
Mauritius is a republic country with an ostensible president and a parliamentary
form of the government headed by a Prime Minister. There was a Rule by France
from 1715 to 1810 and by Britain from 1810 to independence in 1968. And from that
time, Mauritius is an established democracy whose citizens enjoy a full range of
democratic freedoms. It includes freedom of speech and assembly and recourse to
an independent judiciary also. In the legitimate channels, the Political issues are
decided very peacefully. The press is very much free. And, it energetically
participates in the country’s political life. Although Mauritius is a republic, it maintains
the British Privy Council as its court of final appeal.

The ruling labor government was replaced by an alliance of the Mouvement

Socialiste Militant (MSM), led by Sir Anerood Jugnauth, and the Mouvement Militant
Mauricien (MMM), led by Paul Berenger in the elections helded in September 2000.
In the National Assembly, the alliance won 54 of the 62 elected seats. Sir Anerood
Jugnauth became a Prime Minister when Paul Berenger was appointed as a Deputy
Prime Minister and Minister of Finance. The coalition agreement anticipated that Sir
Anerood Jugnauth (MSM) will become a President after the three years. But, it was
after the constitution is amended to confer greater power to that office. And he will be
handing over the prime ministership to Mr. Berenger (MMM) to complete the five
years term of the office.

Further, we can say that the Political Risk in Mauritius is Moderate. The Mauritian
government intervenes in the markets through subsidies and price controls. It
contributes to price inconsistency. During the slowdown, Monetary and Fiscal
Policies both have been expansionary. And at the same time the government debt
remains high. But, in mid-2011 in the light of inflationary pressures, there was a
round of monetary tightening. The government is very much aggressive in facilitating
improvements in the business climate. The World Bank ranks Mauritius at the first
position among African nations in its Doing Business index, which is the most
effective part of Mauritius.

In a framework of a parliamentary representative democratic republic, politics of

Mauritius takes place. And, in that the President is the head of state and the prime
minister is the head of government who is assisted by a council of Ministers.
Mauritius itself has a multi-party system in which Executive power is being exercised
by the government and Legislative power is being vested in the government and
the National Assembly both. And, the absolute power is split between two positions
that is, the President and the Prime Minister.

Mauritius Politics is based on the principles representative democracy. In the

Republic of Mauritius, the parliament plays the most important role in the political
scenario of the country. There are different social as well as political forces that work
in the country. Mauritius is at the 29th position among the countries, which countries
are under the British Commonwealth.

2
Mauritius gained the independence from the British Rule in the year 1968. And after
the independence, Mauritius Politics became dominant in the country. In December
1995, Mauritius elections were held for the first time. And, it was followed by
elections in 2000 and 2005. The National Assembly has 66 members in total.
General elections are held after every five years to select 62 out of 66 members of
the National Assembly. And, the remaining four members represent different ethnic
minorities. They are appointed by the Election Commission.

ELECTIONS IN MAURITIUS

Mauritius elects a legislature on a national level. The National Assembly has 70

members. Among those 70 members, 62 members elected for a four year term in 21
multi-member constituencies and remaining 8 additional "best loser" members
appointed by the Supreme Court. And, the president is elected for a five year term by
the parliament. Mauritius has a multi-party system, in which there are two or three
strong parties and a third party that is electorally successful.

Every voter has three votes. The total number of votes cast divided by three
(648,316) is lower than the actual number of people voting (666,178), because not
all of them cast three votes. Constituencies from 1 to 20 are physically in the island
of Mauritius and each has three elected members. And, constituency 21 is the island
of Rodrigues which has two elected members. The voters are based in the island of
Agalega and other islets are registered in constituency 1.

SOCIALISM IN MAURITIUS

 Socialism in Mauritius includes the Mauritian Militant Movement. It is also

known as MMM. This movement is a Left socialist political party in Mauritius.
The party was basically formed by a group of students in the late 1960s.
Another thing is that, it is the second largest single party in the National
Assembly with 20 MPs. Moreover, it is the second largest party in the local
government with 4 councilors. It is the major opposition party. As from 1 st
May, 2012 it is a coalition opposition with the sister party Militant Socialist
Movement.
 Mauritian Militant Movement was emerged in the year 1969, out of the
original Club des Etudiant, which dates to 1967. There was the major strike
and riots happened in France. And initially, the group was a club for the
University students. At that time, Paul Berenger was one of the initial leaders.

3
 After his studies, he decided to launch a group. He just wanted to launch that
group just to fight for the rights of the students for a better education and
better equal opportunities for each and every student.

 Then, there was a creation of the MMM's sister party, the Militant Socialist
Movement. It is also known as the MSM. The MSM created from the MMM
dissidents, which is also one political party in the country.

 The MSM managed to stay in power until 1995. It had won all elections in
1983, 1987 & 1991. But, the MMM came back in power in 1995 in a coalition
with the Labour Party. They resigned in the year 1997 and then came back
lastly in the government in 2000. But after that, the Prime Minister Paul
Berenger lost the general elections with 42.6% of direct votes which against
48.8% for the Alliance Sociale led by Navin Ramgoolam in the year 2005.

 In 2010, the MMM had brought 42.46% with Paul Berenger as a leader and a
candidate to become the Prime Minister. But, it lost to the alliance being led
by Navin Ramgoolam which obtained 49.31% of direct votes. So, they form
the major opposition party with Berenger as the “Leader of the Opposition”.

 For the purpose of promoting socialism, the MMM principles are there. Those
principles are existing to advocate a fairer and more democratic Mauritian
society. And those are free from discrimination which is because of social
class, gender, religion, community, caste, race or sexual orientation.

LABOR PARTY IN MAURITIUS

The Mauritian Labour Party is a centre-left social-democratic political party in

Mauritius. It is one of the three main Mauritian political parties along with
the Mauritian Militant Movement and the Militant Socialist Movement. The Labour
Party was founded in the year 1936 by Dr. Maurice Cure. The foundation of Labor
Party was based on the British Labour Party with the vision and determination of
promoting workers' rights and freedom as well as compensation including a higher
wage rate with paid leaves.
The movement was very much encouraged by 55 conferences. And those
conferences were held by the leaders of the party throughout the country. There
were some other goals also, which includes the initial resolutions to obtain suffrage
for the working class, the prohibition of capitalist exploitation of sugar plantations, the

4
organization of a Department of Labour, representation in the Legislative Council, as
well as the overall implementation of socialist values among Mauritian government
agencies.
The founders of the Mauritian Labour Party were Dr. Maurice Cure, Dr. Hassenjee
Jeetoo, Pandit Sahadeo, Emmanuel Anquetil, Jean Prosper, Barthelemy Ohsan,
Samuel Barbe, Godefroy Moutia, and Mamode Assenjee. The Labour Party remains
the oldest major political party in the Republic Mauritius. This party forms a coalition
government elected firstly in 2005 and lastly in the 2010 general elections. And, the
government is formed under the Labour Party Leader - Navin Ramgoolam. He has
been leading the party since 1991.
But in the year 1955, Dr Maurice Cure died. And Emmanuel Anquetille became a
leader of the party until he was imprisoned and sent to the island of Rodrigues for
making strikes and encouraging workers to form trade unions for the purpose of
better rights and working conditions.
In the year 1958, Seewoosagur Ramgoolam marked a major history for the party
which turned itself from the very basic principle for workers' rights to a new vision
and policy. Moreover, the independence of the Country which was devastated with
poverty and famine led by the British Empire. Then in 1967, a constitutional
agreement was made in parliament following the numerous conferences in
Lancaster and London, United Kingdom. Coalition government including the Labour
Party, Muslim Action Committee & Independent Forward Block sealed the pact for
Independence.
Then Labour Party led by Dr Ramgoolam, Satcam Boolell, Veerasamy Ringadoo,
Harold Walter in coalition with the Muslim Action Committee led by Abdool Razack
Mohamed & the Independent Forward Block led by the Bissoundoyal brothers, Lall
Jugnauth and Anerood Jugnauth pushed a motion in the legislative council to
provide for an independent country announced for 12th March, 1968.
There was the Hung parliament in the year 1976. It formed a coalition government
with the Mauritian Social Democrat Party led by Sir Gaetan Duval. Then in the year
1982, the party had suffered from a several electoral defeat from the
emerging MMM led by Paul Berenger & Harish Boodhoo. Then, Seewoosagur
Ramgoolam resigned to make way for the first elected MMM Prime
Minister, Anerood Jugnauth.
From 1983 to 1995, the Labour Party suffered various issues. It includes its electoral
support from the population. In the year 1984, the members of the party proposed to
the leader, Satcam Boolell to dissolve the Labour Party and to integrate the Militant
Socialist Movement which was a new created political party and the majority party in
parliament. In the year 1995, the Labour Party came back in power with the support
of the MMM. And, Navin Ramgoolam became Prime Minister.
In the 2000 legislative elections, the party was a part of a coalition with the Mauritian
Party of Xavier-Luc Duval, which won 36.6% of the popular vote and eight out of 70
seats. In 2005 elections, the party was part of the Alliance Sociale. It won 42 out of
70 seats.
In the general election of 2010, the party had formed the majority of L'Alliance de
L'Avenir, which had regrouped the Mauritius Labour Party, the PMSD and the MSM.

5
The Alliance de L'Avenir won the general election with 41 seats against 18 seats for
L'Alliance du Coeur, which was being led by the MMM and 1 seat by the FSM. On
6th August, 2011 the Alliance broke. As a result of it, only the Mauritius Labour
Party, MR and the PMSD formed the government.
The modern and effective goals of the Mauritian Labour Party are to guarantee equal
opportunity to all citizens regardless of race, religion, sex, or class and to secure a
healthy and clean environment for future generations.

CONSTITUENCIES OF MAURITIUS

Constituencies of Mauritius are the electoral boundaries of the Republic. The

country elects 60 members of parliament for a period of 5 years. There are 21
constituencies in the Republic each of them returning 3 members except
Constituency 21 which returns two members only.

Those electoral boundaries are considered to be main pillars for elections as

they allow members of parliament to be elected and thus to form government. As it
has been mentioned in the constitution, the Electoral Boundaries Commission will
review the constituency boundaries.

Electoral Boundaries Commission report shall make recommendations for any

alterations to the boundaries of the constituencies as appear to the Commission to
be required so that the number of inhabitants of each constituency is nearly equal as
to the population quota that is the number of inhabitants of a constituency may be
greater or less than the population quota in order to take account of means of
communication, geographical features, density of population and the boundaries of
administrative areas.

According to the ancient constitution before 1967, Mauritius was divided into
40 constituencies. This represented an elected member of parliament which would
elect a Chief Minister along with a council. The new Constitution was provided in
1992, but constituencies still remains moreover same, where many small 40
constituencies has been mixed to form a total of 21. The results showed members
would be including twenty-four MPs of Hindu community, three Mps elected from the
Muslims, one Mp elected from the sino-Mauritians and remaining 12 Mps were of
Christian group. The equality of representation thought ethnic groups which are

6
considered as very sensible subject and then government decided to amend the law
and move it to a system of Best Loser was affected.

The Best Loser System

The method used in Mauritius to make sure that the minorities ethnic groups
are well and equally represented in the parliament is the Best Loser System. Apart
from 62 directly elected members, eight additional seats which are allocated for the
best losers who were candidates from the appropriate ethnic groups, namely the
minorities was provided by constitution. The main build of Christians and Muslims
with a small percentage of Sino-Mauritian are minorities.

CONSTITUENCIES

There are presently 21 constituencies :

The island of Mauritius comprises 20 constituencies; and
Rodrigues forms the 21st constituency.

These constituencies are listed below:

Const.
Constituency Name
No
1 Grand River North West and Port Louis West
2 Port Louis South and Port Louis Central
3 Port Louis Maritime and Port Louis East
4 Port Louis North and Montagne Longue
5 Pamplemousses and Triolet
6 Grand Baie and Poudre d’Or
7 Piton and Rivière du Rempart
8 Quartier Militaire and Moka
9 Flacq and Bon Accueil
10 Montagne Blanche and Grand River South East
11 Vieux Grand Port and Rose Belle
12 Mahebourg and Plaine Magnien
13 Rivière des Anguilles and Souillac

7
 14 Savanne and Black River
15 La Caverne and Phoenix
16 Vacoas and Floreal
17 Curepipe and Midlands
18 Belle Rose and Quatre Bornes
19 Stanley and Rose Hill
20 Beau Bassin and Petite Rivière

21 Rodrigues

Political parties constitute the machinery for democratic control of political

power as they articulate and aggregate the interests of diverse groups in society and
form the basis of political pluralism. Seventy-two political parties registered for the
July 2005 Mauritian general elections,2 but the three largest and most dominant
ones are the Mouvement Militant Mauricien (MMM), the Labour Party (LP) and the
Mouvement Socialiste Mauricien (MSM). Interestingly, each of these three parties
has been in an alliance with one or the other at different times, leading to the quasi
domination of these three parties within the Mauritian political landscape.
Findings from the external regulatory framework component of the study
highlight the flexible nature of the Mauritian system and how the Electoral
Commission and its ancillary bodies contribute to the good conduct of elections.
While Mauritius has developed a strong ballot culture that is transparent and
accountable, it still has a number of important democratic deficits. The first-past-the-
post electoral system that is in place has important implications for party
representation. The unfair nature of the system – as reflected by the disproportion
between the percentage of popular votes cast and the number of seats obtained in
parliament – has often been posited as an argument for change; but change seems
difficult to bring about.
Another major democratic deficit is the under-representation of women in the
political space, particularly in parliament. While Mauritius surpasses most other
Southern African Development Community countries on a number of socio-economic
indicators, the country is at the bottom of the list when it comes to women’s
representation; and the 2005 general election appears to be another missed
opportunity to address this imbalance.

8
THE PARTIES OF MAURITIUS

 Militant Socialist Movement (MSM)

 Militant Movement of Mauritius (MMM)
 Mauritian Labor Party (MLP)
 Mauritian Social Democrat Party (PMSD)
 Rodrigues People's Organisation (RPO)
 Independent Forward Bloc (IFB)
 Mauritian Party of Xavier-Luc Duval
 Rodrigues Movement
 Mauritian Militant Socialist Movement (MMSM)

CHALLENGES AND OPPORTUNITIES OF MAURITIUS

1. These relate to improving gender representation in parliament and electoral

reform, such that parties with a high level of votes are not left out, as is often
the case under the present electoral system.
2. Another challenge that persists is the question of funding of political parties.
Openings have been made by the Select Committee on Political Party
Funding, which was chaired by the attorney general and the director of the
Joint Economic Council.
3. A 3rd challenge is the fight against ethno-religious based politics that exists in
Mauritius.

POLITICAL HEADS OF MAURITIUS

 President: Anerood Jugnauth

 Vice President: Monique Ohsan Bellepeau
 Prime Minister: Navin Ramgoolam
 Leader of the Opposition: Paul Berenger

9
CULTURAL VARIATION AS A POLITICAL CHALLENGE
Man is gregarious, but he has to learn to live in togetherness. Mauritius is a country
that guarantees equality within a welfare state system and a thousand actions taken
to ensure the provision and enjoyment of equal opportunities. The constitution of the
country does not believe in assimilation of minorities. We do not draw capital out of
the fact that there are minorities in the country. Every community’s religious rights
are respected. A Tamil’s festival is as important as that of a Hindi speaking
Mauritian. Every Asian language has a radio or television channel. The principle of
equality provides recognition to every single culture in its own right. Mauritius has no
lesson to learn from Europe or America, the Arab world or India in matters of
multiculturalism. Today it is going beyond the threshold of multiculturalism and
developing an “intercultural” mode of peaceful co-existence. The intercultural can be
achieved only when we have gained mastery over multiculturalism.

Hence, Multiculturalism has been a characteristic feature of the island of Mauritius.

Mauritian society includes people from many different ethnic and religious groups:
Hindu, Muslim and Indo-Mauritians, Mauritian Creoles (of African and Malagasy
descent), Buddhist and Roman Catholic Sino-Mauritians and Franco-Mauritians
(descendants of the original French colonists).The basic dilemma of polytechnics
societies can be expressed like; all members of a liberal democracy are entitled to
the same rights and opportunities.

Moreover, they also have the right to be different and in our age and day, the rights
of minorities to maintain and to be visible in the public sphere and to promote their
cultural specificity, including the school, media curricula and so on, are increasingly
emphasized on.

CONTEMPORARY HISTORY OF POLITICAL PARTIES AND PARTY

SYSTEM:-

Politics of Mauritius takes place in a framework of a parliamentary representative

democratic republic, in which the President is the head of state and the prime
minister is the head of government who is assisted by a council of Ministers .
Mauritius has a multi-party system.

Executive power is exercised by the government. Legislative power is vested in both

the government and the National Assembly. The absolute power is split between two
positions, the President and the Prime Minister. Mauritian politics is vibrant and
characterized by coalition and alliance building. All parties are centrist and reflect a
national consensus that supports democratic politics and a relatively open economy
with a strong private sector. Alone or in coalition, the Mauritian Labor Party (MLP)
ruled from 1947 through 1982. The Mauritian Militant Movement/ Mauritian Socialist

10
Party (MMM/PSM) alliance won the 1982 election, taking all 60 seats in Mauritius. In
1983, defectors from the MMM joined with the PSM to form the Militant Socialist
Movement (MSM) and formed a majority in coalition with the MLP.

The MMM and MSM rejoined in a coalition that won the 2000 elections and, although
a handful of MPs defected from the MSM in early 2005, both parties went together to
the next election in July 2005, competing against the Alliance Sociale, a MLP-led
coalition. The Alliance Sociale won the elections with an overwhelming majority.

In 2010, the MLP made a controversial alliance with the MSM, which is reported to
have been decided since MSM's leader Pravind Jugnauth won the partial elections in
constituency No. 8 owing to MLP's leader's silent orders. The alliance again won the
majority with a comfortable number of seats defeating the MMM's alliance with two
other parties.

.EXTERNAL REGULATIONS AND ENVIRONMENT

External environment – the regulatory, financial, political and electoral spheres in

which political parties grow and function – influences parties’ strategies and
organization. The external environment also has a fundamental impact on the
capacity of parties to become more effective agents of democratization. Mauritius
has a rather interesting and rich election tradition, with streets and building facades
in each constituency strewn with banners, posters and plastic ribbons popularising
the symbols and colours of competing
parties. This is no doubt an important part of the spin machine of parties and their
respective leaders as Mauritius follows the logic of political marketing and
advertising.

It ensures an electoral system where fairness and representivity were not forsaken,
especially when it came to ‘correcting the over-representation of the leading party or
alliance’ In Mauritius, Political representation is ensured through a fully competition
electoral process that is based on universal adult suffrage expressed by secret
ballot. The age of voting is 18 years and over.

POLITICAL RISK: FAIR ( MODEST)

 The government of Mauritius mediates in the markets through subsidy and
price checks, which add to price instability.
 Both monetary and fiscal policies have been expansionary during the
slowdown and government debt remains high. There was a in a circle of
monetary contraction in mid-2011 in light of inflationary pressures.

11
  The government is aggressive in making possible improvements in the
business environment. The World Bank lines Mauritius first among African
nations.

POLITICAL ENVIRONMENT OF MAURITIUS:

It is very difficult for a country to be governed by a franco- Mauritian , mr. Paul

berenger without any support from the majority racial group. As the Mauritian
population comprises majorly of ethnic Indians and the mixed race creoles are the
second largest group within the country .
Paul berenger, the previous prime minister of MMM( Mauritian militant movement )
party and Mr. Ramgoolam(the dominance) have also agreed upon redeveloping a
association again with the ex- president.
Thus required the support of Mr. Jugnauth MSM who had set in motion his journey
in politics by violating off from the Mauritian militant movement.

Labour has believed on to its little preponderance and made happen as expected in
attracting the other oppositions MPs to join its ranks. And these was done when the
other two parties were quiet confident that they could expel the prime minister .
It’s mostly echo and illumination as said by one long-time overseas observer of
Mauritian politics says in conclusion that as per him Mauritius is quiet firm.

INVESTMENT :

Since many more years Mauritius has laid down double taxation agreements with
more than 30 countries among which india is the notable one and also few African
countries. The taxation is layed down moreover on the offshore industry sectors
which is capable of producing five % of gross domestic product .

The average growth of GDP was found to be four percent during the crisis, and is
likely to reduce further by half a point this year.

12
But the government’s beliefs distinguish with the increasing uneasiness of the
residents who believe that the esteemed economic conditions and social harmony
of the country may be at risk. They feel that the country cannot adapt to the rapidly
changing conditions.

Due to well developed business of Maldives as well as Seychelles, Mauritius is

facing problem in tourism sector. And the country has been failed to fill up the
vacant beds of hotels. The predominantly drawn rear clients are of Europe. Many
high class hotels are offering schemes, & pressurizing the islands position as a
unique aspiration too.

GOVERNMENT SPENDING

Government spending scale is non-linear, which shows that spending of government

is penalized and is close to zero. On other hand if it exceed 30% of GDP it will
receive worse score in quadratic fashion (example, four times less freedom is
yielded by doubling the spending), so that only really large government spending --
example over 58% of GDP—attains the score of zero.

The countries with which Mauritius holds good relations are:

- France
- India
- Britain
- South Africa

Mauritius being the member of commonwealth has acknowledged Queen Elizabeth II

to be the holder of the crown of the state, unless it had achieved a republic in the
year of 1992.

MAURITIUS - FOREIGN RELATIONS

Mauritius in the hand have good economic collaboration with Britain and also take
pleasure in having a fine relationship with the same country. And thereby is blessed
with noteworthy development and also with the techonological advances.

The second largest source of finance to the Mauritius is India, which has established
a good social as well as good traditional linkage with the country. India has
dedicated a huge share of assistance to cultural ventures, (a library and
language school opened in 1976) institute of Gandhi.

13
Indian and the Mauritian political leaders have freshly made an appointment in the
home country and they had formed several joint ventures, alliances majorly in fabric
commerce. Thus can be said Other than the conventional, cultural and trade
relations.

Mauritius enjoys membership of:

-OAU

-UN,

-Commonwealth,

-Nonaligned Movement.

- IMF

-European Development Bank

MAURITIUS POLITICAL MOBILISATION& POLITICAL PARTY

The three major parties that have dominated and are supposed to continue to
dominate the Mauritian political landscape are the Labour Party (LP), the
Mouvement Militant Mauricien (MMM) and the Mouvement Socialiste Militant (MSM;
Bunwaree & Kasenally 2005). A fascinating feature of these parties is that for the
past thirty years or so these parties have all undergone several splits. The splits
have generated new parties, most of them were existed for short-term; other gashes
have been compelled by communal/ethnic desires, while still others have basically
become one-person or one-issue parties. Coalitions and association are also
persistent qualities of Mauritian politics, permitting particular parties or groups of
parties to preserve or access power (Kadima 2006).

INDUSTRIES IN BRIEF
It can interpreted from above that still few coalitions and corruption is in air within
the nation if the business is to be done in sugar industry. Thus risk aversion scale is
moderate .

Clothing industry remain the principal company, with more than 46,000 workforce,
and create up the next biggest component of GDP with SEVEN % which indicates
that it hold the global business in export of about 50 % of the world.

Most producers are of the neighbourhood. Ten big companies records of

about ninety % of the product manufactured. And for roughly 90 per
cent of production and, significantly, large portion of the products are
perpendicularly incorporated, manufacturing fabric and yarn along with apparel’s.

14
ECONOMIC CONDITION
OF MAURITIUS AND
OVERVIEW OF
FINANCIAL MARKETS

15
 Comparison of Indian economy with the Mauritius economy
Gross domestic product (GDP) means the value of all final goods and services
produced within a nation in a given year. It is not a measure of personal income. It also
determines the consumption such as cost of materials, supplies and services used for the final
goods and services. A nation's GDP at purchasing power parity (PPP) exchange rates is the
sum value of all goods and services produced in the country Comparing the gross domestic
product of the Indian economy with the Mauritius economy it is approx. 4500 billion dollars
in india which is quite better then Mauritius approx. 19 billion dollars. As the Mauritius is a
small country with a limited population its GDP is less then india.

Literacy includes the percentages for the total population, that is the males and
females. There is no universal definitions of literacy. It means all the ability to read and write
at a certain specified age. Low literacy, and less education , can impede the economic
development of a country in the today’s rapidly changing, technology-driven world.
Comparing the literacy ratio between the two countries, the Mauritius is far better than india
which is only 74.04% compared to 88.5% of Mauritius. Thus with less population of
Mauritius the literacy ratio is in an increasing stage from year to year.

The inflation rate furnishes the annual percent change in consumer price compared
with the previous year’s consumers prices. Comparing the inflation rate of the two countries
the inflation rate in Mauritius was 6.5% in 2011 compared to india which was 8.9% in 2011.
There was a great rise in the inflation rate in india in 2010 which is not so good for the
country as price rises of all the goods and services. Thus the inflation rate has to be
maintained to control the price rise.

The GDP real growth rate gives GDP growth on the annual basis which is adjusted for
inflation and expressed as a percent. Comparing the growth rate of the two countries, india’s
real growth rate 7.2% in 2011 and it was 4.1% in 2011 of Mauritius. The growth rate of india
declined in 2011 as it was 10.4% in 2010 and thus the real growth rate of Mauritius is
increasing slowly.

National estimates of the percentage of the population falling below the poverty line
are based on sub-groups through surveys with the results weighted by the number of people
in each and every group. Poverty vary considerably from nation to nation. Comparing the
population below poverty line of the two countries it was 10% in 2001 of Mauritius
compared to 25% in 2002 of india which stats that there are about nearly one-fourth of
population below the poverty line in india and still it is continuously increasing and thus
government has to take enough measures to contol the poverty.

The investment records total business spending on fixed assets, such as machinery,
factories, dwellings, inventories of raw materials equipment which provide the base for the
future production and is a measured gross of the depreciation of the assets. Comparing the
two countries the investment of india was 32.8% in 2011 an it was 24.5% in 2011 of
Mauritius and it has decreased in 2010 compared to 2008 which was 39%. So more measures
should be taken to make more investment.

16
 Unemployment rate means the percent of the labor force that are having no jobs.
Comparing the two countries the unemployment rate of india in 2011 was 9.8% and of
Mauritius it was 7.8%. The unemployment rate of india has decreased of india fron the
previous year and thus measures should be taken such that more and more labor force should
be employed to decrease the unemployment rate. The unemployment rate of Mauritius was
also stable during many years.

Population gives an estimate from the US Bureau of the Census based on statistics
from population census, or sample surveys pertaining to the recent past and on assumptions
about future trends. The total population presents the overall measure of the potential impact
of the country on the world and within its region. Comparing the population of two countries
there is a vast difference as the population of india is much more than Mauritius as india
ranks second in the total population of the world. India’s recent population is approx. 121
crores and that of Mauritius is approx. 13.25 lakhs.

Public debt records the cumulative total of all government borrowings less
repayments that are denominated in a country's own currency. Comparing the two countries
the public debt of india in 2011 was 48.5% which was less than Mauritius which was 57.3%
in 2011.

The exports provide the total US dollar amount of merchandise exports on free on
board basis. Export means the goods and products of one country is being send to different
countries for sale. The export of india in 2011 was 299.4 billion dollars which has much
difference from Mauritius which has only 2.65 billion dollars.

The imports provide the total US dollar amount of merchandise imports on a cost,
insurance, and freight or free on board basis. It means the goods and products of other
different countries are brought to our country for sale. The import is also far better of india
than Mauritius. The imports of India in 2011 were 461.4 billion dollars and that of Mauritius
was 5.16 billion dollars.

Life expectancy at birth contains the average number of years to be lived by a group
of people born in the current year, if the mortality at each age remains constant in the future.
It includes the total population as well as the male and female components. The Life
expectancy at birth is also a measure of overall quality of life in a country and summarizes
the mortality at all the ages. Comparing the two countries the life expectancy at birth of india
recently is 67.14 years which is less compared to Mauritius which has a life expectancy of
74.71 years.

The death rate means average annual number of deaths during a year per 1,000
population at midyear and is also known as crude death rate. The death rate with only a rough
indicator of the mortality situation in a country, also accurately indicates the current mortality
impact on population growth. It is recently 7.43 in india and 6.73 of Mauritius.

The birth rate means the average annual number of births per 1,000 persons in the population
at midyear during a year and also known as crude birth rate. The birth rate is most dominant

17
factor in determining the rate of population growth. Recently it is 20.6 in india and 13.78 in
Mauritius.

Consumer price index (2005 = 100) in Mauritius was 137.23 as of 2010 and reached a
maximum value of 137.23 in 2010 and its minimum value was 4.00 in 1963 and in india it
was 151.91 as of in 2010.

ECONOMY SYSTEM

The economy of mauritius has evolved into a middle-income diversified

economy with the growth in financial sector, industrial sector, and tourist sectors. Put simply,
it's a growing economy and it has shifted from a predominantly agriculture based economy to
an industrial one.

The annual growth has been in the order of 5% to 6% from the last many time.
This remarkable achievement has been reflected in more income distribution, lowered infant
mortality, increased life expectancy and a much-improved infrastructure.

The economy had also made reforms in sugar, tourism, textiles ,and in financial services, and
the economy expanding into fish processing, hospitality, information and communications
technology and in property development.

The Investment into banking sector alone has reached over $1 billion. Mauritius, has been
well poised in its strong textile sector to take advantage of the Africa Growth and
Opportunity Act (AGOA).

Also, To face the globalisation and a new economic environment the Government has taken
several steps like. The High value-added, capital intensive and knowledge-based activities are
on the list of priority. The Information Technology sector doing rapid changes so it will fit
for the next millennium. The aim of the Mauritius country is to make a centre for high-tech
and software services.

 Area:
2,040 sq. km. (787 sq. mi.); 500 miles in east of Madagascar, in ocean of india.
 GDP (2010 est., official exchange rate):
$9.496 billion.
 Real growth rate (2010 est.):
4.2%.
 Per capita income (2010 est., purchasing power parity):
$13,670.
 Avg. inflation rate (2010 est.):
2.9%.

18
  Natural resources:
None.
 Agriculture (3.6% of GDP):
The agriculture product include ,tea, sugarcane, pulses, cattle, corn, bananas, potatoes,
fish, and goats;
 Manufacturing, including export processing zone (18% of GDP):
Types- The labor intensive goods of export, include textiles & clothing, watches &
clocks, jewelry, optical goods, toys & games, and cut flowers.

 DEMOCRACY:

Mauritius has a stable parliamentary democracy and it operates on the foundation of a liberal
constitution and the rules and procedures inherited in the colonial period from the
Westminster model. And that`s why island state invariably earns the best marks on Freedom
House's rating of political rights.

 Rule of law :

Mauritius has a functioning legal system based on elements of French civil law and British
common law. The constitution guarantees, the separation of powers, and freedom of the
press, the independence of the judiciary, the political practice respects.
 Capitalization :

The rank of the Mauritius country is 10 th, the currency of the country is Mauritian rupee
(MUR). There are many trade organization like WTO,COMESA,SADC,AU,LOC,IORA in
the country.

The estimated GDP of the country is $20.225 billion for the year 2012, and the gdp growth
rate is 5.2% for the year 2008 estimated. The estimated GDP per capital is $15,595 for the
year 2012.

 Inflation :

The inflation (cpi) for the year 2011 is 6.7% estimated and in 2012 it is estimated to 4.8%.
The estimated population below poverty line is 8% in the year 2006 , the estinated labour
force is 607,400 in year 2011,the labour force by occupation vise divided in to different part
are given as under.

 Unemployment rate: The unemployment rate is 7.8 % in 2011 and in 2012 it is

estimated to 8.2%.
 Budget

Revenues:$2.364billion
Expenditures: $2.842 billion (2011 est.)

19
  Industries:

The main industry in the country is food processing and in which the mainly suger mining
industry , textiles industry, clothing industry, chemicals industry , metal products, transport
equipments, nonelectrical machinery, and tourism sector.

Economic Condition of Mauritius

Economic condition defines the Status of the country's financial position at a specific time. It
May be defined by the use of statistics involving GDP information, stock market data,
unemployment rates data and per capita income among other metrics.
A country's economic conditions are influenced by various macroeconomic and
microeconomic factors, including fiscal policy and monetary, exchange rates, unemployment
levels, the state of the global economy, productivity, and inflation and so on.
Economic conditions of any country are changing over a period of time due to the economic
and business cycle, because economy of all the country passes through the expansion as well
as contraction period. Economic conditions of any countries are considered to be positive
when an economy is in expansion mode expanding and in negative phase if an economy is in
a contracting mode.
The economy of Mauritius is highly depend upon the sugar, textiles, financial services,
tourism, and is expanding into fish processing, hospitality and property development and
information and communications technology,.

Gross National Income (GNI):-

GNI is the sum of the amount in which all resident producers have provided the value and not
any product taxes are included

Year 2007 2008 2009 2010 2011

(GNI) 7,629,589,059 8,658,245,729 9,256,807,691 9,959,902,823 10,592,391,586

Gross National Saving (GNS):-

Gross National Saving (GNS) RM 47,249 39,299 46,140 49,075

Cash surplus/deficit (% of GDP)

Cash surplus/deficit= revenue- expense- net acquisition of nonfinancial assets

20
 Year 2009 2010

Cash surplus/deficit 0.6 -2.4

Per capita Income:-

GDP per capita - US$ 8,655 (2010 estimate)
GDP per capita – PPP- $15,595 International Dollars (2010 estimate)

Unemployment Rate: -
Unemployment is the rate which shows the percentage of the total labour that is unemployed
in nature

Year 2009 2010 2011 2012*

Unemployment Rate 7.3% 7.8% 7.8% 8.2%

Population below poverty line is 8%(2006) Estimated.

Gross capital formation

The value for Gross capital formation in Mauritius was 14.10% (annual) in 2010.

Year Gross capital world capital Gross capital Gross capital Growth rate of
formation, formation formation in formation gross capital
billions GDP (%) per capita, formation, %
dollars % dollars

2007 2.10 0.16 26.9 1646 116.7

2008 2.6 0.18 27.1 2025 123.8

2009 1.90 0.15 21.3 1471 73.1

2010 2.40 0.17 24.71 24.7 1848 126.3

24

Inflation rate in the economy:-

Inflation as measured by the consumer price index.

Year 2007 2008 2009 2010 2011 2012

21
Inflation (%) 8.8% 9.7% 2.5% 2.9% 6.5% 4.8%

Central government debt, total (% of GDP)

Debt is the entire stock of direct government fixed-term contractual obligations to others
outstanding on a particular day. It includes the domestic liabilities as well as foreign
liabilities such as currency and securities other than the shares, money deposits and loans
taken.
2009- 37.8
2010- 37.9
Public debt

60.2% of GDP (2011 est.)

57.7% of GDP (2010 est.)

Growth of primary capital markets as well as secondary capital markets: -

(As on 26th October 2012)
Market Capitalization-Rs 167,161,564,152.50
Total Volume Traded- 704,964
Total Value Traded - Rs 50,811,808.89

Industrial production growth rate of Mauritius is 3.3% (2010 est.)

Budget:-
Revenues: - $2.364 billion
Expenditures: - $2.842 billion (2011 est.)
Budget surplus (+) or deficit (-):
-4.2% of GDP (2011 est.)
Country comparison to the world: 138 Rank

From the all the data about the Mauritius represents the its economic condition and it refers to
be sound good for the business environment

Mauritius has achieved impressive and sustained progress in economic conditions. From a
monocrop economy, depending mainly on sugar, it has diversified its economic activities
into, apparel and textile industry, financial and tourism services.

The average economic growth was 5.6% over the last 3 years. The income per Capita has
reached 4000 US Dollars. And thus because of this the standard of living of the people of the
Mauritius is increased.

22
The other sectors namely Tourism, Textile, Agriculture and Financial services are also
undergoing changes in a positive direction

Mauritius has successfully translated economic growth into concrete poverty reduction and
improvements in human development.

Economy – overview
The economy of mauritius has evolved into a middle-income diversified
economy with the growth in financial sector, industrial sector, and tourist sectors. Put simply,
it's a growing economy and it has shifted from a predominantly agriculture based economy to
an industrial one.

The annual growth has been in the order of 5% to 6% from the last many time.
This remarkable achievement has been reflected in more income distribution, lowered infant
mortality, increased life expectancy and a much-improved infrastructure.

The economy had also made reforms in sugar, tourism, textiles ,and in financial services, and
the economy expanding into fish processing, hospitality, information and communications
technology and in property development.

The Investment into banking sector alone has reached over $1 billion. Mauritius, has been
well poised in its strong textile sector to take advantage of the Africa Growth and
Opportunity Act (AGOA).

Also, To face the globalisation and a new economic environment the Government has taken
several steps like. The High value-added, capital intensive and knowledge-based activities are
on the list of priority. The Information Technology sector doing rapid changes so it will fit
for the next millennium. The aim of the Mauritius country is to make a centre for high-tech
and software services.

 Area:
2,040 sq. km. (787 sq. mi.); 500 miles in east of Madagascar, in ocean of india.
 GDP (2010 est., official exchange rate):
$9.496 billion.
 Real growth rate (2010 est.):
4.2%.
 Per capita income (2010 est., purchasing power parity):
$13,670.
 Avg. inflation rate (2010 est.):
2.9%.
 Natural resources:
None.

23
  Agriculture (3.6% of GDP):
The agriculture product include ,tea, sugarcane, pulses, cattle, corn, bananas, potatoes,
fish, and goats;
 Manufacturing, including export processing zone (18% of GDP):
Types- The labor intensive goods of export, include textiles & clothing, watches &
clocks, jewelry, optical goods, toys & games, and cut flowers.

 DEMOCRACY:

Mauritius has a stable parliamentary democracy and it operates on the foundation of a liberal
constitution and the rules and procedures inherited in the colonial period from the
Westminster model. And that`s why island state invariably earns the best marks on Freedom
House's rating of political rights.

 Rule of law :

Mauritius has a functioning legal system based on elements of French civil law and British
common law. The constitution guarantees, the separation of powers, and freedom of the
press, the independence of the judiciary, the political practice respects.
 Capitalization :

The rank of the Mauritius country is 10 th, the currency of the country is Mauritian rupee
(MUR). There are many trade organization like WTO,COMESA,SADC,AU,LOC,IORA in
the country.

The estimated GDP of the country is $20.225 billion for the year 2012, and the gdp growth
rate is 5.2% for the year 2008 estimated. The estimated GDP per capital is $15,595 for the
year 2012.

 Inflation :

The inflation (cpi) for the year 2011 is 6.7% estimated and in 2012 it is estimated to 4.8%.
The estimated population below poverty line is 8% in the year 2006 , the estinated labour
force is 607,400 in year 2011,the labour force by occupation vise divided in to different part
are given as under.

 Unemployment rate: The unemployment rate is 7.8 % in 2011 and in 2012 it is

estimated to 8.2%.
 Budget

Revenues:$2.364billion
Expenditures: $2.842 billion (2011 est.)

24
  Industries:

The main industry in the country is food processing and in which the mainly suger mining
industry , textiles industry, clothing industry, chemicals industry , metal products, transport
equipments, nonelectrical machinery, and tourism sector.

SUMMARY OF ECONOMICS POLICIES

Monetary Policy

The monitory policy was reviewed by government of Mauritius in which total exports f.o.b
had increased by 2.6 % y-o-y in 2012Q1 as a increase in food and live animals exports was
very few offset by a down in miscellaneous manufactured goods exports. Total imports c.i.f
had up by 7.3% y-o-y, mainly headed by machinery imports. All the textile and tourism
sectors were affected by weak external demand and less visibility. However, they had been
propped up by diversification efforts into emerging markets. Over the time duration of
January to April of 2012, total tourist income growth was down by 0.2 % comparing to the
equal period in 2011, headed by down in several main sectors. Tourist earnings were, never,
increased by 15.6 % y-on-y in 2012Q1 to Rs13, 819 million.GBC1s, for 2012Q1 showed that
the current account loss had worsened to Rs5.0 billion, from Rs3.1 billion noted in the time
period of 2011Q1, and was at 6.0 % of GDP. The main current account deficit was mostly
the outcome of a higher merchandise trading loss and a bit surplus on the ‘income’ account
while the ‘current transfers’ and ‘services’ accounts was up compared to 2011Q1.

Foreign Trade Policy

Cabinet noted the outcome of the recent work of the Deputy Prime Minister of the country,
Minister of Energy and Public Utilities to India where he took part in the l Seminar of Energy
and the Petro tech International Oil and Gas Conference on the international level. The
Seminar on international level on Energy Access was a platform to share experience on good
practices and new solutions on use of energy, and share information to be driven actions to
get global use to energy from 2030.

Cabinet has noticed of the outcome of the works of the Minister of Business in the
country, Enterprise and Cooperatives to South Korea where they took participated in the 2012
Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference held in the
connection of the Korea-Africa Cooperation Week with each other. The main motives of the
Conference were to regain existing cooperation among KOAFEC partners, and share the
profits of the major economic developments of Korea over the past 10 years. The main topic
of the Conference was the “Inclusive Growth” and the slogan of that is Sharing Today,
Shining tomorrow.

25
FOREIGN INVESTMENT POLICY

As per the information of the African Countries of the Future 2011/12 report published by
FDI Intelligence, a specialist and master division of the Financial Times(for the fiscal policy
and decisions), Mauritius up the overall ranking positions, climbing from fourth 4th position
to third 3rdoverall, behind the Morocco and South Africa in the African countries. The report
shows that Mauritius has the best quality of life and second best FDI strategy in African
countries. FDI’s Countries of the Future shortlists are created by an independent collection of
data by the FDI Intelligence division across 59 African countries in the world. This
information was set under seven parameters: Economic Potential of the country, Human
Resources (HR), Quality of Life, Cost Effectiveness, Business in the world, Infrastructure.

Mauritius continues to improve its ranking on the global competitiveness environment. The
Economic Forum’s global competitiveness index for 2011-2012 ranked Mauritius 54th out of
142 countries and 2nd in Sub-Saharan Africa after the South Africa . The Economic Forum of
the world says that indicates that Mauritius forms part of the Top 15 worldwide regarding
investor protection and business impact of rules on foreign direct investment.

FISCAL POLICY

Main inflation was moderated further to 5.3 % in May 2012, from 6.2 % in February 2012,
while y-o-y inflation remained unchanged at 3.8 % for the 3rdconsecutive month.Alchohlics
and tobacco (+1.5 %points) continued to the main to y-o-y inflation was followed by the
plans of housing, water, electricity, gas and other many more fuels’ (+0.6%), ‘food and
non-alcoholic beverages’ (+0.5%) and ‘restaurants and hotels has (0.4 % ).

The Bank’s Inflation Estimation Survey of May 2012 showed that a slightly high proportion
of respondents (76.0 %) were hoped prices to go high over the next 1 year. Most respondents
continued to anticipate inflation within a range of 4.5-6.5 % over the next 1 year, with the
mean inflation rate expected one year ahead decreased to 5.9 %.

MAURITIUS- GLOBAL/INTERNATIONAL ECONOMIC

ENVIRONMENT
The reform in the economic environment of Mauritius started in year 1968. The country is
agriculture based country. The main products in which the economy of Mauritius deals is
textile, sugar, financial and tourism. Mauritius started dealing in multi sector from the year
2006. In the world economy Mauritius is having good economic zone.

As per the survey of 2012 Mauritius is having highest GDP and GDP per capita income in the
African Group of countries. In African group of countries Mauritius is considered to be the
freest economy in the terms of investment, climate, and governance. In African economies
also Mauritius is ranked first by the World Bank for five consecutive years. As per 2012
index of Economic Freedom Mauritius has a fast growth free market. The currency of

26
Mauritius is one rupee which is divided into 100 cents from 2011 5 and 20 cents coin are
also in circulation.

The top most part of the Mauritius Economy includes human capital development still
reforms are need for efficiency driven to economy and to make the economy as high earning
economy. The performance of macro economics has been uncertain, reasonably strong and
fragility.

Mauritius is largely depended on external trade an d Forigen direct investment. The tourism
sector of Mauritius is largest growing sector in Mauritius but at times it also faces many
crises. The investment sector has fallen in the year 2011. The second half of Mauritius
condition is detraining because of putting pressure on external demand, escalating euro crises,
and ensuring austerity measures a high impact in the year 2012.

The financing of various activities of Mauritius is done by the central bank of Mauritius. In
global competitive ranking Mauritius is ranked 54 and for the index of Economic freedom it
is ranked 12.

Mauritius has trade relations with various countries. It imports many good form many
countries and exports goods to many countries. Mauritius faces crises because it imports
more than exports. India and USA are the main trading partners of Mauritius. Clothing and
textiles are exported by Mauritius. In Portugal, South Africa, Spain, Italy, Madasagascar,
India, France, South Africa, and china. It imports manufacturing goods, capital goods, food
stuff, oil products and chemicals.

The trade relation of Mauritius is good with India. There are many agreements which are
been made between India and Mauritius. Various agreements like bilateral agreements with
Mauritius , Defence cooperation with Mauritius, Bilateral trade with Mauritius etc.. were few
agreements which were done between India and Mauritius .Mauritius also has good trade
relations with china. On regular bases many of the ministers from China has visited Mauritius
and many ministers and presidents from Mauritius have also visited china on regular basis.

The Agriculture sector has been estimated to generate high revenue as per the estimation of
2011 even though its growth was slow in the year 2010. There was a gradual change in the
primary sectors of Mauritius.

In sugar industry inspite of adverse condition it showed growth during the year 2011. There
was also seen growth in the non sugar industry. Employment in the hotel and manufacturing
sector also should a continues increase.

27
 FINANCIAL MARKET IN MAURITIUS
Financial market is most important in any country because it strengthen the economic
condition of the country. Here we see the financial condition of the mauritius.

Mauritius currency is Mauritian rupee.

Mauritius is on 49th position in all over the world for the investment in this country which is
not too bad because of this we can say that it’s not a under developed company.

BANKING SYSTEM OF MAURITIUS

The Bank of Mauritius was founded in September 1967 as the Central Bank of the country.
The bank of mauritius was established for the fulfilment of their objectives. Some of the
objectives of the mauritius bank is to protect the internal and external importance of the
currency of Mauritius and its internal convertibility. To direct its policy towards attaining
monetary conditions conducive to strengthening the economic activity and prosperity of
Mauritius. To make certain the stability and trustworthiness of the financial system of
Mauritius. To regulate credit and currency for the development of Mauritius.

The role of mauritius bank is to manage monitory policy, exchange rate of rupee, foreign
exchange, in cooperation with other relieve supervisory & regulatory bodies, payment, the
clearing and settlement system of Mauritius. They also taking care of regulate and supervise
financial institution conveying on activities in or within Mauritius. All work relating to the
financial statistic like collect, compile, and disseminate financial data.

There are 20 banks are working in the mauritius. Some of the well known banks are The
mauritius commercial bank, HSBC, BOB, SBI, Standard Bank and so on. All this banks are
providing services like Automatic overdraft facilities, Electronic Banking System, Direct
debit card, International credit card, Medium and long term loans, Saving account with
cheque, Computerized cashier system, Equity financing facilities and Sale & purchase of
foreign currencies.

In the year 2012 the bank rate of the mauritius bank was 3.39% p.a & the repo rate of the
mauritius bank was 4.49% p.a. Central bank of mauritius also provide other financial
facilities like Government Mauritius treasury Bill, Bank of Mauritius Bill, Treasury notes,
Five year government of Mauritius bond, Long term bond and so on.

Here we take 1 Mauritius rupee against other currencies:

U.S.A- 30.14, Australia - 31.24, Canada - 30.19, Japan - 37.85, U.K - 38.48

INSURANCE INDUSTRY IN MAURITIUS

The starting stage of mauratius insurance industry was on 1854 with the fire insurance co.
There are mainly two types of insurance in the mauritius one is general and other one is life
insurance. In mauratius economy there are no of. Companies who done this business of
Insurance for the betterment of the people. Some of the insurance companies are very popular

28
in the mauritius like Mauritian Eagle Insurance Company Ltd., Lamco International
Insurance Limited, The Anglo-Mauritius Assurance Society Ltd., Swan Insurance Company
Ltd.

There are 1860 agents are working in the mauritius for selling the insurance in the country.
The long-term insurance industry generated a total gross premium of Rs 11.96 bn in 2010 as
compared to Rs 9.51 bn in 2009, act as an agent on behalf of a person or organization an
increase of 26%. Total assets of long-term insurers increased by 16% to reach Rs 75.38 bn in
2010 as compared to Rs 64.95 bn in the previous year. Insurance companies also provide the
services like life cover, risk cover, pension fund and so on.

MUTUAL FUND INDUSTRY IN MAURATIUS

The National Mutual Fund Ltd (NMF) was incorporated in 1990 as a joint venture between
local private insurance companies and some government controlled companies in an attempt
to motivate savings among the Mauritian population.

As of January 2010, NMF forms part of the Mauritius Union Group following the acquisition
of 95.71% of issued share capital.

There are mainly two types of plans:

1. NMF General Fund :NMF general fund use some strategy for the improvement of the
MF industry and that strategy is to invest in a diversified portfolio of properties &
securities related to the property.

2. NMF Property Fund :

NMF general fund use some strategy for the improvement of the MF industry and that
strategy is to invest in a diversified portfolio of properties and securities to related
property.

STOCK MARKET IN MAURATIUS

The Stock Exchange of Mauritius Ltd (SEM) was established in Mauritius on 30th march,
1989 under the Stock Exchange Act 1988, as a Pvt. Ltd. company liable for the operation and
promotion of a regulated and efficient securities market in Mauritius. Since 6th October, 2008
the Stock Exchange of Mauritius has become a public company. SEM is today first
Exchanges in Africa & a member of the World Federation of Exchanges (WFE).

The SEM operates two markets

 The Official Market:

 The Development & Enterprise Market (DEM):

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In 1994 the stock market was opened to foreign investors for the lifting of exchange control.
Foreign investors get the advantage from numerous incentives such as revenue on sale of
shares can be freely repatriated & there are no tax on capital gains & no withholding tax on
dividends been geared towards modernizing the current operational & regulate The successful
execution of the (CDS) Central Depository System in January 1997 has brought about swift,
efficient clearing and arrangement of trades & at the same time decreased some of the
inherent risks in the process.

In the year 2011 the market capital and the annual turnover of the companies are USD
5,721,771,159 and USD 499,054,221 respectively.

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SOCIAL ENVIRONMENT
AND TRADING
PARTNERS OF
MAURITIUS

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  SOCIAL CLASSIFICATION OF MAURITIUS:

Social classification in Mauritius is consist of

1) Franco – Mauritians
Who have huge amount of wealth and because of this they also control the
economy of Mauritian.

2) Indo – Mauritians
Who are mainly traders, landowners and industrialists in the Mauritius.

3) Sino – Mauritians
Who are traders and industrialists in the Mauritius.
5% of the Mauritian people own more than 60% of the wealth out of total
wealth of the country as per conservative estimation of business and land’s
ownership.

 Mauritius Culture:
Culture of Mauritius is a mixture of many cultures like Europe, France, Dutch, India,
China and Africa. Mauritian culture reflects the culture of other countries and tradition
that have settled and ruled during last 400 years on the island.

Different variety in traditional Mauritius cosine is another example of richness with

different coolers of different culture. Mauritian dishes are a combination of finest East
and flavors of west and therefore the dishes of Mauritian teste are unique in the
taste.

 MAURITIAN SOCIETY:

Economic and political life of Mauritius also has high influence of complexity of
Mauritian society. By different social classes, religion groups, social classes and
ethnic group society of Mauritian society can be analyzed. In Mauritius there are
mainly three origins in 1990 namely Europe, Asia and Africa and most of the
population of the Mauritius in the fifth generation.

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  Gender equity in Mauritius :
In reducing gender disparities Mauritius is making good progress. The country’s
gender inequality index in 2011 is 0.353 while in 2008 it was 0.466 which shows an
improvement in Mauritius’s gender inequality index.

GCR 2011 2012 ranks Mauritius amongst the bottom 50 globally. Mauritius stood at
115th out of 142 countries.

In 2011 the ratio of women parliamentarians is 18.8% which is lower than 50% target
ratio. In August 2009, the protection of domestic violence act and equal opportunities
act was passed in Mauritius.

Poverty reduction & Social protection in Mauritius:

In Mauritius as per the estimation of the government less than 1% of total population
lives on less than 1 USD per day.Labour force participation of women is 38% which
is very low.

Main five pillars of Mauritius’s social security system are:

1) Social-assistance schemes (free health care for children) and a universal

system of non-contributory pension for the elderly, the disabled and widows.
2) Contributory pension schemes for employees of public and private sector.
3) A Provident Savings Scheme funded by both public and private employers
and by workers (2.5% of salary and 1% from employers) provides benefits on
retirement, redundancy or death of employee.
4) Occupational pension schemes run by the private sector.
5) Government subsidies on food (rice and flour), housing (for the lower-income
groups), free education and health services for all, and free transport for the
elderly and students.

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  Music of Mauritius

Indigenous musical form of Mauritius is known as ‘SEGA’. Basically SEGA is from

African origin. Slaves from Africa origin started this indigenous music SEGA. Hip –
swaying style of Sega dance and instrument of musical instrument made from piece
of goat skin and wood doesn’t found easily in mainland Africa.

 Literature of Mauritius:

Literature of Mauritius is of conservative cast traditionally like other countries.

Literature of Mauritius emphasis on French the dominant language’s proper use.
Mauritian writings became more progressive from 1930’s in terms of both content
and form.

 Languages in Mauritius

The official language of the Mauritius is English and French . Majority of the
population uses French based Creole language. Creole is also common language of
media and an education sector. Creole language is considered as native language of
the Mauritius and it is also used in informal settings as well. English and French
languages are favored in professional settings and an educational sector. In
Mauritius include other languages which is spoken by their people is Mandwin, Urdu,
Chinese croles, Tamil, Hindi, Gujarati, Telugu, Bhojpuri and Marathi. Hindi, Marathi,
Gujarati, Tamil, Bhojpuri and Telugu all are the Indian languages which are spoken
by the early Indian settlers. Most of the people of Mauritius are bilingual or trilingual.

 Wedding in Mauritius

Mauritius is considered a perfect wedding destination for two reasons - the tropical
image of the island and that marrying in Mauritius is unbureaucratic. Also the couple
can extend the wedding to honeymoon. Mauritius has almost 12,000 tourist couples
saying “I do” on the island every year so it is also known as the Island of wedding. As
a foreigner, you can be legally married by the registrar as well as the Catholic
Church. The hotels and agencies also offer special wedding packages, which
comprise of the organization of the entire ceremony. The couples who have decided
to exchange vows on this spectacular island must start making all the arrangements
34
at least six months before the special day. All necessary documents are to be
submitted in the registrar’s office at least ten days prior to the wedding.

The following documents are mandatory for a marriage in Mauritius:

 Non-Residence Certificate for country: certificate which proves that the future
married couple are not citizens of Mauritius and do not have their permanent
residence in Mauritius (you get this certificate at the Mauritian registrar office)
 2 copies of : Birth certificates of partners, valid passports first three pages
(has to be at least 6 more months valid), certificate of nobility
 Baptism Certificate (if you plan a church marriage)
 May be divorce papers and death certificates of former spouses.

 Documents for non-citizen:-

1. Birth certificates.
2. Divorce documents if applicable.
3. Certificates issued by the competent authorities or the citizen of the country of
residence attesting, that person is of good character and is not the suspect in
relation to any pending criminal proceedings, process or investigation. In case
of his or her country doesn’t issue certificate of good character than the non-
citizen can produce instead an affidavit certificate to the matter as specified
above, duly and sworn authenticated in accordance with the law of his/her
country of residence.
4. A certificate of residence from his/her country, attesting that he/she is in gain
employment or alternatively it has sufficient means to maintain him/her.
5. Medical certificate attesting that he/she is not suffering from any infections or
contagious disease.
6. Passport.

 Document to be produced for Mauritian citizen:

(1) Birth certificate issued within the last three months.

(2) Divorce documents (if applicable).
35
 (3) Certificate of citizenship if applicable.
(4) Death/Marriage certificate(s) if widow/widower.
(5) National Identity Card.

 Wedding Ceremonies on Isla Mauritia

Isla Mauritia, built in 1852, is a truly magnificent example of the world’s nautical
history. It is the last active vessel of its category in the world. The vessel, with
some modifications, is offered for day sailing cruises, to give everyone a chance
to go back in history, and revive the old days with the new romance. The crew
members are professional sailors with more than 7 years of experience on ocean
sailing boats. The wedding on this historic vessel can be of your imagination. The
ideas that can be realized on the vessel will be selected and it will be decorated
such that the idea of your dream marriage will be turned to reality.

 Religion of Mauritius

There are four basic religions in Mauritius which are Hinduism, Christianity,
Muslims and other general population. Among these Hinduism is dominant
surprisingly just because is transferred from the Indians who have migrated as
workers of European settlers of the island

Hinduism

During the year 2000 the statics shows that 52% of the population follows Hindu
religion. This is of interesting fact that makes this small country one of the three
countries in the world with Hindu dominance. There are several Hindu festivals are
celebrated in this island. Out of these, Mahashivratri, "Siva's Great Night." The other
festivals are Ganesh Chaturhti, Diwali-the festivals of light, Holi, Gudi-padva and
MakarSankranti.

Christianity

Christianity first came to Mauritius with the Dutch inhabitants. The French brought
Christianity later again when they arrived in about 1715. From those times, a law

36
whereby all slaves coming to the island must be Baptist Catholic. After that during
the Napoleonic Wars, the British tried to turn Christians in Protestant in 1850s. The
Roman Catholic Church in Mauritius is a part of the worldwide Roman Catholic
Church, with the spiritual leadership of the Pope in Rome.

Muslims

Muslims constitute over 16.6% of its population and generally all Muslims of
Mauritius are of south-Asian descent. Approximately majority percent are Sunni
Muslims having an understanding of the Urdu language. Within the Muslim
community, there are major ethnics that exist-the Memons and the Surtees (who are
rich merchants who came from Kutch and Surat part of Gujarat-India.

 Education in Mauritius

The Mauritius Government provides free education to their citizens from primary to
tertiary levels. The Government of Mauritius also provides the free transportation to
all students. Since July 2005 this facilities provided by the Government to the
students of Mauritius.In Mauritius schooling is compulsory up to the age of 16 years.
Mauritian students consistently getting top rank each year for the Cambridge
International O Level, International A and AS examination. The total literacy rate of
Mauritius is 89.8 percent in the year of 2011.

According to the census the male literacy rate is 92.3 percent and female literacy
rate is 87.3 percent in the year of 2011. English and French Languages are teaching
in school on compulsory bases. A student who wants to learn any ancestral
languages which are spoken in Mauritius, so they have an option to learn other
languages. The other ancestral languages spoken by Mauritian people, which are
Sanskrit, Tamil, Urdu, Telugu, Marathi, Hindi, Bhojpuri, Gujarati, Arabic and
Mandrin.In 2012 the Government of Mauritius introduces Creole in primary school.
Other two languages also included by government are Spanish and Italian.

37
  The University of Mauritius
In Mauritius, there are main two public universities first is University of Mauritius and
University of Technology. University, have three stages, as in the most of countries
Bachelor’s, Master’s and Doctoral degrees.In Mauritius recently private tuitions has
become very popular among the students because of competitiveness of the
education system. Students go to private tuition after school hours and during the
weekends.

 Festivals

There are many festivals in Mauritius.

Maha Shivratri is a Hindu festival and it is celebrated in honor o Hindu god Shiva.
Always Maha Shivratri is held in between February and March. This festival is also
known as The great night of Shiva which is celebrated by pilgrimage to “Grand
Bassin”.

Ugadi is a festival of Telugu community and this celebration of Telugu New Year.
The New Year starts with worship of god in the temples and distribution of sweets to
friends and relatives. This festival is held in month of March.

Ganesh Chaturhti is Hindu festival. It marks the Ganesha’s birthday. Accordingly to

Hindu mythology, the Ganesha is the God of wisdom and remover of all obstacles.
It is held on fourth day of the lunar month of Hindu calendar.

Diwali is celebrated as the victory of Rama over the Ravana and Krishna’s
destruction of the demon Narkasuran Diwali is the festival of lights and it is
celebrated by Hindus and Tamilians in which paper lanterns with the candles in them
and traditional clay oil lamps are placed in front of houses. Traditional clay oil lamps;
these have been replaced mostly by decorative electrical lights.

Eid ul-fitr’s exact date is subject to confirmation as its celebration depends on the
visibilities of the moon. Eid ul-fitr is celebrated to mark the end of Ramazan with is
Muslim’s holy month. Ramazan month is also known as month of fasting. For
Muslims Eid is the day of rejoicing and thanks giving.

38
Thaipoosam Cavadee is a festival of Hindus, but more precisely it is celebrated by
Tamil community in Mauritius. Cavadee is celebrated in January or February.
Thaipoosam Cavadee is the ceremonies of swords climbing and along with the fire
walking. Tamil people celebrated this festival by body piercing with needles and the
tongue and cheeks with skewers.

Holi is Hindu festival and the celebrants splash each other with colors. Normally it is
held in month of March.

The Spring Festival is celebrated by Sino Mauritian community. Spring Festival is

the Chinese New Year is celebrated in January or February. Spring Festival is
depending on the adjustment of lunar day.

 Mauritius food

Mauritius is a combination of culture and cuisine. That indicates that we can enjoy a
wide variety of food. The Mauritian food was originated from 3 different continents.
We will be able to enjoy different food in our plate everyday during our visit to
Mauritius. Even Mauritius was under the rule of British for a long time they kept a
wide variety from French cuisine. But in Mauritius they take tea in the afternoon like
British culture and it’s like tradition. It’s like “Parmpara” to take tea in the afternoon.

Eating food in Mauritius is like real adventure. If we visit Mauritius it will be must to
enjoy the local food. Mauritius food is a combination of Creole, Chinese, European,
African and Indian.

 Mauritius Political System

The Republic of Mauritius is a Democratic state, which includes that it is a member

of the British Commonwealth. Due to the historical background of Island, Mauritius
political system is same as British political system.

Mauritius protects its inhabitants and guarantees the mankind rights, which
are

1) Freedom of speech,
2) Freedom to choose a religion.
3) Freedom to attend religious ceremonies and

39
 4) Right to own private property.

President is selected with help of “National Assembly council”.

Prime Minister is the person who rules and governs the Island. Every 5 years the
voting for a new Prime Minister is done by population and the National Assembly.

From the National Assembly the Prime Minister chooses his cabinet. The Prime
Minister looks after the issues and assembles the meetings of the cabinet, which has
got responsibility for the National Assembly.

New laws are lanced by the National Assembly, hold debates and talks about new
political issues, and controls enterprises or controls businesses owned by the state,
the “Executive” controls it. “Bills” which are known as Ideas or new laws, are first
introduced and then discussed in the National Assembly. After that the politicians
hold a voting about whether that law should be introduced, changed or disregarded.
After this voting only, the new laws will be introduced, if the president agrees.

 Mauritius Urbanism, Architecture and the use of space

In all over the world with one of the highest population densities, a high premium on
housing is placed by Mauritius. Both Hindus and Muslims are willing to invest their
life savings in real estate. Their unique architecture is known for

1) Sharp roofs,
2) Long balconies and
3) Canopies.

The government, in recognize of the heritage of the older houses, to save

their designs has campaigns.

 Heath and medical care in Mauritius

After independence Mauritius has developed a steady social welfare system which
provides free basic health services to the entire population of Mauritius.

40
In the constitution of Mauritius it is strongly committed that all the state has a right to
get health care as one of its key principles. According to Mauritius constitution
medical services is provided at all public service centres, from primary healthcare to
tertiary healthcare are free to all 1.2 million Mauritian citizens. The finance which is
generated in general taxation are use in state health care system.

Vaccination health in Mauritius

Even though Mauritius is a part of the African continent there are no particular
vaccination strongly recommended while travelling to the island. In Mauritius There
are some vaccinations which are recommended and some are even not required.
Malaria is not found in Mauritius since year ago as they are taking vaccination of
malaria in time.

List of the some vaccination which are usually required to take by the traveller
while travelling to the Mauritius .

1. Hepatitis B 2 month before travel

2. Hepatitis A 2 weeks before travel
3. Rabies 1 month before travel
4. Typhoid 10 days before travel
5. Meningococcal meningitis
6. Diphtheria 3 month before travel
7. Tuberculosis 3 month before travel

Following are the most known hospital in Mauritius

o AG Jeetoo Hospital
o Sir Seewoosagur Ramgoolam National Hospital
o Victoria Hospital
o Brown Sequard Hospital
o Medical & Surgical Centre Ltd
o Moka Hospital
o University of Mauritius Medical School

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  Secular Celebrations

Mauritius is very small country but with different culture, religion, and festival.
Mauritius island is one of the countries were u find culture from almost everywhere. It
is really good to discover the Mauritian diverse cultures. Each culture of Mauritius
has their traditions and beliefs.

While visiting the island you may find a mosque near a catholic church or a Chinese
pagoda near an Indian temple. There are many of in the religions found in Mauritius
mainly Buddhism, Hindu, Muslim and Christian.

Here is the list of festival celebrated in mauritius.

1. New Year 1st Jan. 2012, Sunday

2 Chinese spring festival 23rd Jan. 2012 ,Monday

3 Abolition of slavery 1st Feb.2012, Wednesday

4 Thaipoosam cavadee 7th Feb. 2012 ,Tuesday
5 Maha shivaratree 20th Mar. 2012 ,Monday
6 Mauritius national day 12th Mar. 2012 ,Monday
7 Ougadi 23rd Mar. 2012 ,Friday
8 Labour day 01st May 2012 ,Tuesday

9 Eid-Ul-Filr 19th Aug.A2012 ,Sunday

10 Ganesh chaturthi 20th Sept.2012
11 Arrival of indentured labourers 2nd Nov. 2012 ,Friday
12 Divali 13th Nov. 2012 ,Tuesday
13 Christmas 25th Dec. 2012 ,Tuesday

 Arts and humanities

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Here are the list of the some of the art galleries found in Mauritius where u can
admire the Mauritian arts:

1. Gallery didus
2. Max boulle art gallery
1. Galleries stephane braud
2. Print shop
3. Galerie didus
4. Vaco art gallery
5. The Mauritius glass gallery
6. Gaterie raphall
7. Lepoisson b’amour
8. Point shop
9. Manglier art gallery
10. Galerie helenede senneville

 Non Government Organisation and other association.

In the Mauritius MFPWA is a leading NGO, which promoting Sexual and

Reproductive Health Rights and Services.

MFPWA existed since 1957 and has gathered much experience, over time,
competence and expertise. MFPWA has received UN Population Award in 1990 and
the Most Outstanding NGO in Mauritius in 2000 and 2005; MFPA is regarded as a
model replication for many regions.

Mission statement

 Family Planning Association of Mauritius is , a Member of the International

Planned Parenthood Federation Africa Region, is the Leading Non-
Governmental Organisation in the Field of Family Planning.
 MFPWA is committed to the Promotion of Social Justice, the Advancement of
the Rights of the Individual and Family to Free and Informed Choice
Regarding the Number and Spacing of Children, Gender Equity and

43
 Contraception and to Preparing Young People for Healthy Attitudes and
Behaviour.
 It will achieve there Goals through Information , Advocacy, Networking and
Demonstration of Quality Care Services.

Vision statement

 In the Mauritian society where each an every individual enjoys full sexual and
reproductive health and rights and where SRH information and services are
available, accessible and affordable to all, irrespective of sex, age and creed.

 India-Mauritius Trade Relations

The relations between India and Mauritius were started in 1948. Then in the 1820s,
Indian workers started coming to Mauritius for the working in the sugar plants. In
1834 the slavery came in the British Parliament, many Indian workers began to be
brought into Mauritius as indentured laborers. Then in November 2, 1834 the day
when the ship ‘Atlas’ docked in Mauritius carrying the first batch of Indian indentured
labourers. And day now observed in Mauritius as ‘Aapravasi Day’.

In this all, a half of million Indian indentured labourers are estimated to have been
brought into Mauritius between 1834 and the early decades of the 20th century, out
of whom about two-thirds settled permanently in Mauritius.

 Influence of Indian National Movement

Mahatma Gandhi moves to South Africa from India on (October 29 to November 15,
1901), while awaiting departure SS Nowshera, his ship is still etched in the
consciousness of Mauritius. And as a tribute to the Gandhiji the Indian freedom
struggle, the National Day of Mauritius is been celebrated as on March 12 every year
(the date on which the Dandi Salt March was launched). Then In the month of
November year 2001, a commemorative MRs 100/- silver coin was released on the
occasion of the 100th Anniversary of the Gandhiji’s arrival in Mauritius. So good
influence was there of gandhiji in Mauritius.

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  Bilateral Agreements with Mauritius

Both the country India and Mauritius have signed several bilateral agreements. And
From that there are Some of the important agreements are as follows: In the year
1982 the Double Taxation Avoidance Convention. Then in year 1998 Bilateral
Investment Promotion and Protection Agreement. Then in 1972 and in 1995 the Air
Services Agreement took place.

 Defence Cooperation

Then ITEC-II programme, about 50 personnel from the Mauritian Police Force were
trained annually in Indian Defence Training Establishments. Our country India gifted
INS Amar to Mauritius in 1974. Even though India has been provided the interceptor
patrol boat, for the CGS Observer to Mauritius on a free lease. India also undertook
the own cost extensive repairs from the Mauritius’ Chilean-made flagship Vigilant on
two occasions. The Hindustan Aeronautics Limited (HAL) has delivered two Dornier
maritime aircrafts to Mauritius in May 1990 and April 2004. India had also given a
gift the 2 Chetaks, the first one in the year May 1976 and the second one in the year
February 1987. Then the came ALH Dhruv it was delivered to the Government of
Mauritius in the year November 2009. A Coastal Radar Surveillance System which
was known as (CSRS) was been built by Bharat Electronics Limited (BEL) was
delivered and subsequently commissioned in April 2011.

 Major Indian Assisted Projects:

Then there are major projects like Mahatma Gandhi Institute, then Jawaharlal Nehru
Hospital and then also Equipment for the Subramania Bharati Eye Hospital and then
the Up gradation of the Upadhyay Institute for Training, and also the building of a
Court House , then also the station like ISRO TTC, also Rajiv Gandhi Science
Centre, Cyber Tower, then the Rabindranath Tagore Institute, and Swami
Vivekananda Intl. Conference Centre; and the World Hindi Secretariat set up jointly
by the Governments of India and Mauritius is located in Mauritius.

45
Visa Regime:
In the month October 2004, the Mauritian Government introduced the visa-free
regime for the Indian tourists. And Under that regime, the Indian tourists visiting
Mauritius for a period up to 60 days do not have to require a visa, provided they
should show sufficient funds to cover their stay. Total 53,955tourists from India
visited Mauritius in the year 2011.

 Cultural/Educational Relations

At annually, about all 100 scholarships are been extended to Mauritian students for
their higher education in India. And then 200 approximately students of Mauritian
enrolled every year in the Indian universities on a self-financing basis. Also the
Active cultural exchanges is been done with the Mauritius take place both under the
officially sponsored programmes and through a wide non-official network of the Indo-
Mauritian socio-cultural organizations. Programme of the Cultural Cooperation
between India and Mauritius for the year 2010-2013 was signed in the month of July
2010. Also the Indira Gandhi Centre for Indian Culture has emerged as an
important venue for the cultural events.

 India Mauritius Trade Relations

The India Mauritius trade relation is the common forum between India and Mauritius
Chamber of Commerce and the Industry. Also (FICCI) Federation of Indian
Chambers and Commerce and Also the Mauritius Chamber of Commerce and the
Industry represent their trade and the business community of their respective
countries. Also further, their common goal is to increase the ethical business
activities between both the countries.

 Tax Reliefs

The entities that can set up in the Mauritius are been category as 1 and Category 2
global business companies (GBC1 and GBC2 respectively) and trusts. Both the
categories is been provide for the tax exemptions, but unlike GBC 1 companies,
GBC2 companies cannot been benefit from numerous tax treaties. A GBC 1 is the

46
resident in tax purposes for Mauritius and is been liable to be the taxed at the rate of
15%.

 HSBC as A Banking Partner

Now coming to the services offered by HSBC to the corporates wishing to the set up
their businesses in Mauritius, Mr Singh explains: "Our geographic coverage has
been spans across 85 countries including the substantial presence in the Mauritius.

Also With the customers ranging from the international conglomerates to the small
scale handicrafts exporter, we have been necessary experience of the trade across
the spectrum to advise the exporting/importing companies on their trade
transactions.

And Our suite of the trade products range from regular services like foreign currency
accounts and all deposits, letters of credit and also payment guarantees, forfaiting to
the other services such as export-import collections and financing and advisory
services on any trade transactions."

Economy
Major economic sectors

 GDP per capita is $US6, 100 in 2007 that makes it the richest economies in
African countries.
 Manufacturing sector boost economy at 18% of its GDP
 Sugar sector gives 0.7%, Food sector gives 5%
 To maintain the growth Sugar, textile and tourism is the main sector.
 In year 2005 GDP growth down to 2.3% but then economic reform it up at 5%
in 2006.
 Mauritius’ corporate tax rate is lowest in all over the world. Flat 15%.
 To more expand the economy and create steady growth, the government
encouraging the following economic activities-

47
 1- Land based oceanic industries
2- Hospitality and property development
3- healthcare and biomedical industry
4- agro processing and biotechnology
5- The knowledge industries.

Macroeconomic indicators

 Up to 2002, the average annual rate of GDP was 5%. But some major
problems suffered – the hike in oil price, the phasing out Of the MFA and the
decrease in sugar prices.
 The government of Mauritius, via the Empowerment Program and the Human
Resource Development Council (HRDC), has provided training to workers
who lost their jobs make more employable in other sectors.
 Up to 2005 the inflation rate was 5%. But hike in oil price it increase 10.5% in
2006-07.

Basic trade flows

 Mauritius’s total exports and imports both increased, but its imports was
higher than Exports
 Mauritius exported more clothing and apparels products; its valuation is 35%
total export income.
 Sugar’s share is 16% of total exports.
 export trading partners – Madagascar & South Africa,
 While South Africa was also its import trading partner.
 Textile yarn, fabrics, made-up articles related products & feeding stuff for
animals which exports to Madagascar.
 The main exports to South Africa were articles of apparels & clothing
accessories & non-industrial diamonds, worked but not mounted or set

48
  The main imported products from S.A. were iron & steel & petroleum,
petroleum products & related materials.

Top export and import partners

The top 20 countries for Mauritian exports there are 8 countries from the Europe.
 The UK and France have large share of Mauritius’ total exports to Europe.
 In UAE the main products export is cell phones.
 The 4 main sources of imports for Mauritius were China, South Africa, France
and India for the period 2000-2006.
 Mauritius imported textile yarn, fabrics, made-up articles and related items,
From China.
 Iron & steel, coal, coke, briquettes, petroleum, petroleum products & related
materials imported From South Africa.
 Fish crustaceans, aquatic invertebrates & preparations thereof imported,
along with cereals & cereal preparations & medicinal & pharmaceutical
productsFrom France.
 Imports included textile yarn, fabrics, & made-up articles & related products;
petroleum, petroleum products, textile, fibers and their wastes From India.

Top export and import commodities

 The 3rd largest category of exports for Mauritius is electrical & electronic
equipment exports of this products contributed 76% of electrical and
electronic equipment
 80% cell phones exported to UAE & 20% are in Italy.
 We can see that there is rise in export of machinery, mineral products,
prepared foodstuffs and animal products.
 The Mauritian economy continues to expand its exports but yet exports are
still focus on apparel and sugar.

49
International Trade

 Mauritius' main exports are sugar, tea, coffee, textiles, knitwear, time pieces,
tobaccos, cut and uncut diamond, electric appliance and parts.
 Mauritius Imports include chemical products, cement, cotton,gemstones, iron
steel and petroleum products.
 Importers are no required to take licence under the licences ordinance and
certain imports require permits from the Ministry of Trade and Shipping, while
some goods are either controlled or prohibited for the health, securities and
environmental purposes and national interest.

Trade Policy and Trading Partners

 Mauritius' participation in multilateral trading system and in various regional

agreements reflects its interests as a small, export-oriented economy with
advantages in few product, sugar, textiles and clothing

 The resultant reduction of duty and tax concessions could contribute to

reducing public deficit and facilitating further tariff reforms, which are currently
hampered by fiscal concerns as customs duties account for about 50% of tax
revenue.

Mauritius - Customs and duties

 A value-added tax are 12% levied on all imports

 petroleum, Vehicles, alcohol, cigarettes, and furniture have a special excise

duties of up to 360%.
 Most of the imports require a license and state enterprises control to import of
rice, flour, petroleum, wheat, cement, tea, tobacco, and sugar.
 The country is also member of the Common Market for Eastern and Southern Africa
(COMESA),which give a preferential rates of duty between the member states.

50
 TECHNOLOGICAL
ENVIRONMENT AND
INDIA IMPORT FROM
MAURITIUS

51
 TECHNOLOGICAL ENVIRONMENT & INDIA IMPORT FROM
MAURITIUS

Vision of the IT Industry

The vision of the IT industry is based on a deliberate movement to develop

substantially the national information technology capability of Mauritius. It needs a
far-reaching use of IT in the economy and within the society of Mauritius.

Mauritius Technology Information 1

The University of Technology Mauritius (UTM) is one of the greatest technological

institutions in the country.

Some of the main Science and Technological Institutions in Mauritius are:

1. The Mauritius Institute: Founded on 1880 at Port Louise, it is one of the oldest and
best study centers in the country.
2. University of Mauritius: The premier university in Mauritius. It was recognized in 1965
at Reduit. The university have expertise in science, agriculture and engineering.
3. Mauritius Sugar Industry Research Institute: This is another institute situated in
Reduit, which was established in 1953.

Mauritius national ITplan plan (NITSP) 2

 On the basis of the survey carried out by NCB in 1997 it was found that the
total turnover of the Mauritian IT industry was Rs.1.09 billion. The hardware
market was estimated at Rs.847 million and was mainly dominated by sales of
PCs, then Software market was estimated at Rs. 108 million in1996.
 The industry exported its services of Rs. 140 million. There are 110
companies in IT industry. The industry employs 1400 people of which 1000
are computer professionals.

52
  In the agricultural sector, most sugar factories have only computerised their
back office activities (finance, payroll, weigh-bridge etc.). A Very few factories
have invested in this kind of system like, process-control systems.
 In the manufacturing sector, large textile companies are quite well
computerised including activities ranging from designing, costing, pattern
cutting, production management, order tracking. The State of the art system in
CAD/CAM are in use.
 In the tourism industry, most players have computerised their back-office
activities (sales, accounts etc.)
 The logistics and transportation sector, only Passport & Immigration
Office, Customs Department and Cargo Handling Corporation are
computerised.
 The Financial Sector is the one where IT penetration is the highest, probably
because their businesses cannot run without IT systems.
 The Registrar General is involved in a massive computerisation project which
involves (EDI) Electronic Data Interchange between notaries and itself.

SEGMENT TURNOVER IN RS.

Hardware 847 million
Software 108 million
IT services 140 million
(Fig.1)1 : Turnover of Mauritius

IT Export

The Export market was estimated by the team to be about Rs140 million in 1996. Big
local companies have started activities in the Indian Ocean region with partners to
offer mainly sales of hardware.

Multinational companies(MNC)

1
http://www.gov.mu/portal/sites/nictspncb/nictsp1/FRep0715.pdf

53
International brands like IBM, digital, HP, Compaq, Sun is presents through
authorized resellers in IT hardware in Mauritius. The big MNCs present are oracle
and Microsoft. The big five firms in the field of accountancy is coopers & Lybrand,
Andersen consulting, Ernst &young, peat Marwick & price warehouse in the
Mauritius.

SWOT Analysis

Strengths:
Mauritius’s political and economic stability is essential for sustained economic
growth including the development of the IT industry. The good level of infrastructure
in terms of communications, electricity distribution, road networks, flights to major
cities of the world, plays an important role in attracting major investors in this sector.
Moreover, Mauritius has developed over the years a fairly good telecommunication
network that has supported the requirements of the industry so far. Again, Mauritius
has established a track record in the publishing and the pre-press sector with over
10 years of experience.

Weaknesses
Generally speaking Mauritius is a late comer in the IT industry. Although there are
companies operating in the low-end of the IT industry – data capture, publishing, pre-
press – Mauritius has little track record in the deployment of complex IT solution. The
domestic market being small with a turnover of Rs. 1.09 billion is not attractive
enough for multi-national companies to set up business in the island. The national
Telecommunication Company has clear plans for the development of the
telecommunication infrastructure, but the pricing policy is still not competitive to
Europe and the USA.

The pool of 1000 IT professionals is far below the critical mass required for the
development of the industry. Moreover, there is a serious shortage of highly skilled

54
 IT professionals in fields such as project management, network management and
system integration.

Opportunities:
In spite of the weaknesses listed above, Mauritius has the potential of developing an
efficient and effective IT industry that would contribute in the development of the
economy.

Threats:
The improving infrastructure of competing nations that also with a lower labour cost
is gradually reducing the strategic advantage of Mauritius. Companies like Cataland
have moved their mass data entry operations to Madagascar because of cheaper
labour available there. South Africa is also developing trade links with the African
countries and will soon become a serious competitor in the IT sector in the African
market. India is an established leader in software development industry. Mauritius
will have to carefully position itself in order to penetrate the software development
market segment.

Telecom services of Mauritius3

150000 residential and 50000 business houses are subscribe telephone services in
Mauritius in 1997.International direct dialing are used for international call. The govt.
owned company operates telecom business in Mauritius telecoms.

IT covers a wide range of activities it is as under:

 Application software development
 Operations management
 System integration
 Manufacturing chips, computers and peripherals

IT ASSESMENT
The IT Industry is mainly conquered by sales of hardware. In the system
technologies concerned, the country is following the method with UNIX systems as
leader in server market and Windows on PC environment.

55
A few companies are exporting a service which provides such as data capture, pre-
media and teleprocessing. In the field of Telecommunications is concerned, major
technologies (leased lines, X25, ISDN) are being used. The Connection to Internet is
available through one ISP. There are abundance of untapped opportunities are
available for IT services in various fields such as Telecommunications, Public
Utilities (CEB, CWA), Road Management systems, Transportation, Port, Airport etc.

Biotechnology in Mauritius 4

 A Hungarian engineer Karl Ereky introduced the term ‘biotechnology’ in 1919,

in the process that permits production of finished goods from raw materials
using living organisms.
 The broader definition of biotechnology is that it cross-cuts areas such as
waste recycling, environmental quality, pharmacology, cell fermentation,
biomedicine, food and fuel production, farming and forensic.
 Biotechnology has application in the mining industry. The bacterium
Thiobacillus ferrooxidants can use the molecules of copper present in
chalcopyrite to form copper sulfate, which, in turn, can be converted
chemically to obtain pure copper. This microbial mining process is about ten
per cent of copper production in the United States.
 Consequently in developed and newly industrialized countries, a large number
of commercial applications have been developed particularly in the
pharmaceutical industry, forensics, in improving agricultural productivity and
veterinary services, in cell fermentation technology, fuel production, and
environment friendly technologies. Biotechnology has application in the
mining industry. The bacterium Thiobacillus ferrooxidants can use the
molecules of copper present in chalcopyrite to form copper sulfate, which, in
turn, can be converted chemically to obtain pure copper. This microbial mining
process is about ten per cent of copper production in the United States.

56
  The following is a breakdown of themes in biotechnology that
should be focused upon in the years to come:

• Plant Biotechnology
• Endemic Plants
• Cash Crops
• Animal Biotechnology
• Food Biotechnology
• Medical Biotechnology
• Marine Biotechnology
• Environmental Biotechnology
• Microbial Food Biotechnology.

THE ICT SECTOR

The ICT sector, a emerging industry, is now the third pillar of the Mauritian economy
with a GDP contribution nearby 6.8% in 2011, with a turnover of $1 billion.

(Fig. 2)2: Growth & size of ICT sector of Mauritius, 2006-2012

2
http://www3.weforum.org/docs/Global_IT_Report 2012.pdf in the making of a digital nation : I-Mauritius
page no.162.

57
The National ICT future Strategic Plan 2011-2014 gives significant policy guidance to
successfully squeeze the knowledge economy journey and respond to these
dynamic changes. The government’s aspirations of transforming the nation into a
high-value economy. The country will continue to see hope to initiative their vision
2014 aspiration takes speed.

These are the critical drivers is make major ICT uptakes and economic multipliers in
the making of the Intelligent Mauritius branded as I-Mauritius.

Developing and implementing a nationwide Broadband Policy

The National Broadband Policy 2020 sets out a strategic vision for an Intelligent
Mauritius (branded as “i-Mauritius”). Mauritius aspires to surge from a typical 1 MB
Internet connectivity to at least a 10 MB connection by 2014. Mauritius is traditionally
known to be the preferred destination for many low-end ICT/BPO activities because
it offers a unique amalgamation of attributes.

Global knowledge process outsourcing (KPO) needs and its high-end processes
such as survey research, investment research, official document filing, official and
insurance claims processing, online training, and media content supply, among
others. Mauritius—with its internationally recognized pool of skilled workers
(although limited in number), including chartered accountants, doctors, MBAs,
lawyers, and so on—has important advantages in the KPO market. This pool of
workers will increase with the operation of the ICT Academy.

National Broadband Scheme Executed

The National Broadband Policy 2020 sets out a strategic vision for an Intelligent
Mauritius (branded as “i-Mauritius”). Mauritius aspires to surge from a typical 1 MB
Internet connectivity to at least a 10 MB connection by 2014.

58
Development of the ICT sector

(Fig.3)3 : ICT sector growth relative to overall GDP growth, 2004-2010

The above figure shows the 2004-2010 time period of ICT sector growth with the growth of
GDP of Mauritius. In 2004 shows highest growth of ICT is 22.7. And in GDP growth rate is
5.5 in the year 2007.

(Fig.4)4: Internet penetration in Mauritius

The Government Programme 2012-2015 Republic Of Mauritius

This programme include on prosperity for all, enhanced connectivity, empowering

people, cohesive society, strong nation and sustainability.

3
http://www3.weforum.org/docs/Global_IT_Report 2012.pdf in the making of a digital nation : I-Mauritius
page no.163.
4
http://www3.weforum.org/docs/Global_IT_Report 2012.pdf in the making of a digital nation : I-Mauritius
page no.164.

59
 Emphasis will be on rebalancing exports through market intellect, alert export
endorsement campaign, and improved visibility of Mauritian goods to capture new
opportunities in existing and emerging markets. Establish dedicated technology
parks for the promotion of specialized activities in the pharmaceutical, medical
policy, high accuracy engineering and other sectors.

Government is creating the right ecosystem to connect each and every household
with at least 1 megabyte per second by 2015. By the end of 2012, legislation for the
penalty point system will be introduced and implemented. A Education and Testing
Centre will be ready by 2013. The Police will have access to new technology for the
detection of specific traffic violations

India Mauritius Trade associations – policy adopted by Mauritius

 recognize items of trade and investment

 Investment guarantee to encourage joint ventures
 Boost bilateral trade

 Encourage Indian savings in Mauritius and joint India-Mauritius investments into the
region.
 Increase Indian venture and shift of technology and know-how, which would propel
the process of economic development in the region.

MAJOR EXPORTS MAJOR IMPORTS

 Clothing And Textiles  Capital Equipment
 Sugar  Foodstuffs
 Cut Flowers  Mineral fuels, lubricants and
 Molasses related products
 Machinery and transport  Chemicals and related products

60
 equipment  Machinery and transport
 Chemicals and related products equipment
 Food and live animals  Food and live animals

Table 1: Mauritius major Import- Export around the year

Export-import data 10

Department of Commerce
Export Import Data Bank
Import :: Country-wise
Dated: 31/10/2012
Values in Rs. Lacs

2012-2013(Apr-
Sr. No. Country 2011-2012 %Share %Share %Growth
Jun)

1. MAURITIUS 18,448.72 0.0079 4,066.53 0.0065

India's Total
234,546,324.45 62,232,219.04
Import
(Table 2) 5: India Import from Mauritius (2011-2012)

Department of Commerce
Export Import Data Bank
Import :: Country-wise
Dated: 31/10/2012
Values in Rs. Lacs

Sr. No. Country 2010-2011 %Share 2011-2012 %Share %Growth

1. MAURITIUS 7,512.67 0.0045 18,448.72 0.0079 145.57

India's Total 168,346,695.57 234,546,324.45 39.32

5
http://commerce.nic.in/eidb/icnt.asp

61
 Import
(Table 3) 6: India Import from Mauritius (2010-2011)

The Cyber Caravan

Objectives of the Cyber Caravan

The main motives of the Cyber Caravan Project are:
 To increase the level of awareness about ICT and the level of competence in
using personal computers and common computer applications.
 To encourage and support ICT literacy.
 To ensure all computer users recognize the benefit of using a personal
computer.

MAURITIUS’S TOP 10 PRODUCTS OF EXPORT TO INDIA

HS Mauritius’s Mauritius’s Mauritius’s % Growth % Growth

Rank Cod Description Export to Export to Export to 2007/2006 2008/2007
e India 2006 India 2007 India 2008
- TOTAL All Products 12.34 10.62 16.84 -13.95 58.61
1. 72 Iron and steel 6.64 5.42 8.87 -18.40 63.75
Optical, photos,
technical,
2. 90 0.53 1.20 1.77 125.80 47.62
medical, etc
apparatus
Nuclear
reactors.
3. 84 0.79 0.47 1.34 -41.44 187.10
boilers,
machinery, etc
Copper and
4. 74 0.04 0.99 0.72 2562.16 -27.31
article thereof
Pharmaceutical
5. 30 0.28 0.19 0.63 -30.43 226.04
products
Electrical,
6. 85 electronic 0.87 0.13 0.42 -85.35 229.13
equipment
Pearls,
precious stone,
7. 71 0.29 0.21 0.40 -27.62 91.79
metals, coins,
etc
Articles of
8. 62 0.10 0.36 0.37 256.86 1.10
apparel,

6
http://commerce.nic.in/eidb/icnt.asp

62
 accessories,
not knit crochet
Miscellaneous
9. 38 chemical 0.02 0.04 0.37 122.22 812.50
products
10. 52 Cotton 0.32 0.20 0.32 -37.81 60.30
7
(Table 4) : Mauritius’s Top 10 Products of Export to India

 Indian and Mauritius are consent to make their negotiations for a Preferential Trade
agreement (PTA) to raise bilateral trade ties.
 Earlier this year, An MoU was signed between the two countries to view the
consolidation of the textile and clothing and fashion industry, distribution greatest
practices. India-Mauritius trade in 2011 was $1.4 billion, up from $687 million in
2010.

To promote technology environment in Mauritius

 Science, Engineering and Technology (SET) themes . The SET week, in line with the
Government Programme 2010-2015 represents a “new drive to Science
Popularization and Sensitization of Science activities in Mauritius”.
 A large series of research and application area related to SET and including climate
change, agro-industry, marine resources, as well as service-oriented sectors such as
health, education and communication were also discussed and disseminated to the
public.
 Tertiary education institutions, community and private sector institutions, and NGOs
participated as exhibitors in the National SET week 2011, which attracted around
1000 participants.

India Mauritius Trade Relations – policy taken by India

 To remove government controls and creating an atmosphere of trust and

transparency for promoting industrialization and trades.
 overview of levies and charges on inputs used in export products.

7
http://focusafrica.gov.in/Top%2010%20products%20of%20exports%20to%20india_Mauritius.html

63
  To make easy technological and infrastructural modification of all the sectors
of the Indian economy, especially through imports and thereby increasing
value addition and productivity, while attaining global standards of quality.
 renovation of infrastructural network, both physical and virtual, related to the
entire Foreign Trade chain, to global standards.
 stimulating the Board of Trade by redefining its role.
 To involve Indian Embassies as an important member of export strategy and
linking all commercial houses at international locations through an electronic
platform for real time trade, intelligence, inquiry and information
dissemination.

Mauritius's core competencies like strategic location and trade

agreements at multilateral and local levels to serve as a launch pad for
Indian investors in Mauritius market and other markets through its
various trade agreements. Mauritius of Government and the EXIM Bank
of India have identified areas of investment for Indian corporate sectors
such as:

 Manufacturing
 Financial services
 SMEs
 Tourism
 Health
 Education and knowledge
 ICT
 Capacity enhancement

Information Technology and Business Process Outsourcing (BPO)

The IT/BPO global sourcing market size is currently estimated between USD 89bn
and 93bn with IT and BPO market shares averaging 40 and 60 percent respectively.

64
The input of the IT/BPO division to the Mauritian economy is expected to grow to
some 8% by 2015 with direct employment in the sector amounting to 25,000.
During the past five years, the IT-BPO industry has sustained an annual growth rate
of 40% and the sector has contributed to 5.7% of GDP in 2009. There are about
15,000 professional directly service customers worldwide across the whole spectrum
of the ICT value chain.
The Mauritius government has position the building blocks to position Mauritius as a
global centre for information hosting, disaster revival, shared services.

65
 ECOLOGY OF
MAURITIUS AND INDIAN
EXPORT TO MAURITIUS

66
 In year 2011 there are various countries which are exporters of Mauritius which are
as under:

Import -partners Contribution

India 25.6%
China 11.5%
France 9.4%
South Africa 7.3%
Singapore 5.9%

India is the biggest contributor of the export goods to Mauritius. India’s contribution is
25.60% which is greater than other four countries’ contribution.

There are various types of goods like petroleum products, manufactured goods,
foodstuffs, chemicals, Capital equipments, Mineral fuels, lubricants and related
products, Machinery and transport equipment, Food and live animals, Crude
materials (inedible) except fuel which are imported by Mauritius from different
countries.

Mauritius is a member of the African Union , World Trade Organization (WTO), the
Commonwealth, La Francophone, the Southern Africa Development Community
(SADC), The Indian Ocean Commission, the Common Market for Eastern and
Southern Africa (COMESA) and the Indian Ocean Rim Association.

Topic: Mauritius Exports

In this topic I include various data in table (year 2005 to 2011) and charts of Mauritius
Exports by products, are as follow..

1. Total Mauritius Exports by Product Section in US Dollars – Yearly

2. Mauritius Exports by Product Chapter in US Dollars - Live Animals; Animal Products

– Yearly

67
3. Mauritius Exports by Product Chapter in US Dollars - Vegetable Products – Yearly

4. Mauritius Exports by Product Chapter in US Dollars - Animal or Vegetable Fats and

Oils and Their Cleavage Products; Prepared Edible Fats; Animal or Vegetable Waxes
– Yearly

5. Mauritius Exports by Product Chapter in US Dollars - Prepared Foodstuffs;

Beverages, vinegar and Spirits ; Tobacco and Manufactured Tobacco Substitutes –
Yearly

6. Mauritius Exports by Product Chapter in US Dollars - Mineral Products – Yearly

7. Mauritius Exports by Product Chapter in US Dollars - Products of the Chemical or

Allied Industries – Yearly

8. Mauritius Exports by Product Chapter in US Dollars - Plastics and Articles Thereof;

Rubber and Articles Thereof – Yearly

9. Mauritius Exports by Product Chapter in US Dollars - Raw Hide and Skins, Leather
and Articles Thereof; Saddlery and Harness; Traveling Good, Handbag and Similar
Containers; Articles of Animal Gut (Other Than Silk-Worm Gut) – Yearly

10. Mauritius Exports by Product Chapter in US Dollars - Wood and Articles of Wood;
Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw, of Esparto or
Other Plaiting Materials; Basket ware and Wickerwork – Yearly

11. Mauritius Exports by Product Chapter in US Dollars - Pulp of Wood or of Other

Fibrous Cellulosic Material; Recovered (Waste and Scrap) Paper or Paperboard;
Paper and Paperboard and Articles Thereof – Yearly

12. Mauritius Exports by Product Chapter in US Dollars - Textiles and Textile Articles –
Yearly

13. Mauritius Exports by Product Chapter in US Dollars - Footwear, Headgear, Umbrella,

Sun Umbrella, Walking-Sticks, Whips, Riding-Crops and Part Thereof ; Prepared
Feathers and Articles Made Therewith; Artificial Flowers; Articles of Human Hair –
Yearly

14. Mauritius Exports by Product Chapter in US Dollars - Articles of Stone, Plaster,

Cement, Asbestos, Mica or Similar Materials; Ceramic Products; Glass and Glassware
– Yearly

15. Mauritius Exports by Product Chapter in US Dollars - Natural or Cultured Pearls,

Precious or Semi-Precious Stones, Metals Clad With Precious Metal and Articles
Thereof; Imitation Jewellery; Coin – Yearly

16. Mauritius Exports by Product Chapter in US Dollars - Base Metals and Articles of
Base Metal – Yearly

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 17. Mauritius Exports by Product Chapter in US Dollars - Machinery and Mechanical
Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers,
Television Image and Sound Recorders and Accessories of Such Articles – Yearly

18. Mauritius Exports by Product Chapter in US Dollars - Vehicles, Aircraft, and

Associated Transport Equipment – Yearly

19. Mauritius Exports by Product Chapter in US Dollars - Optical, Photographic, ,

Measuring, Checking, Precision, Medical or Surgical Instruments and Apparatus;
Clocks and Watches; Musical Instruments; Parts and Accessories Thereof – Yearly

20. Mauritius Exports by Product Chapter in US Dollars - Arms and Ammunition; Parts
and Accessories Thereof – Yearly

21. Mauritius Exports by Product Chapter in US Dollars - Miscellaneous Manufactured

Articles – Yearly

22. Mauritius Exports by Product Chapter in US Dollars - Works of Art, Collectors'

Pieces and Antiques – Yearly

23. Mauritius Exports by Product Chapter in US Dollars - Other – Yearly

India’s Exports to Mauritius

India has been the largest exporter of goods and services to Mauritius. The below
table shows that India’s exports to Mauritius:

Year 2007-2008 2008-2009 2009-2010 2010-2011

India’s Exports
1086 1006.90 453.43 801.56
(In US$) million

Which Products imports from different countries?

From India, Mauritius imports mineral fuels, lubricants and related materials (71% of
total import from India in 2010, mainly petroleum products).

Manufacturing goods classified chiefly like materials, machinery and transport

equipment and miscellaneous manufactured articles are the main categories

69
 imported from China. In year 2010, these categories represented 39.5%, 31% and
19.5% of total import from China likewise. The main products imported textile yarn;
telecommunication and sound-recording and reproducing apparatus and equipment;
office machines and automatic data-processing machine and office stationary.

In comparison to other import partners, imports from France are more products
diversified: crude materials, inedible, except fuels (15.8%), chemicals and related
products, not included elsewhere (15.6%), manufactured goods classified chiefly by
materials (1.6%), machinery and transport equipment (20.4%) and miscellaneous
manufactured articles (18.3%). Products imported include cereals and cereal
preparations, medicinal and pharmaceutical products, wine, fish, crustaceans,
mollusks, aquatic invertebrates and preparations.

The main categories imported from South Africa in 2010 were food and live animals
(19.7%), mineral fuels, lubricants and related materials (23.5%) and manufactured
goods classified chiefly by materials (21.5%). Products imported include wine, iron
and steel, coal, coke, briquettes, petroleum products and related materials.

Yearly imports by Mauritius:

Imports (Billion $)

Year 2005 2006 2007 2008 2009 2010 2011

Import 2.25 2.51 3.39 4.39 3.5 3.94 5.16

IMPORT AND EXPORT OF MURITIUS

Here I have attached the information regarding to the imports of the Mauritius from
India. Indian trade relation is common forum of India and Mauritius chamber of
commerce .the federations of Indian chamber and commerce. The Mauritius
chamber of commerce and they are represents the trade and business communities
of its respective country. Their common goal of business is to increase the ethical

70
business activities between each other. We have focused on the some of the
topics in this report India Mauritius Trade Relations – policy adopted by India.

 The project focused on the Trading policies are trading procedures, Trade
contracts, Trade administrative and regulatory procedures, Trade and
investment opportunities, Business networking. they are working with Economy,
Commerce Formulate a Comprehensive Economic Cooperation and Partnership
Agreement ,Investment and economic cooperation, Indian investments in
Mauritius.

 It also include the area of interest for investment Manufacturing Financial

services SMEs Tourism Health Education and knowledge ICT Capacity
enhancement .and than we have included the all data regarding to the import of
the Mauritius from 2001 to 2010 and then we have done the graphical data
interpretation. and the imports of the Mauritius is 16.51 in 2010 it increased by
5.62 billion. The exports are increased by 348.13 billion in 2010.
 Some types of the products imported by the India like mineral fuels and oils,
distribution products, cotton products, pharmaceutical products cereals,
electrical ,electronic equipment , articles of apparel, accessories, not knit or
crochet, meat and edible meat offal, fish ,crustaceans, mollusks, aquatic
invertebrates, edible vegetables and certain roots and tubers, iron and steel.
 Then we also have included the main commodities by sections in 2010-2011.in
that different type of the commodities things they have included likewise
beverages and tobacco, crude oil, mineral fuels, chemical and related products,
manufacturing good, textiles yarns, machinery etc.

External trade of Mauritius and related to India

 India and Mauritius trade are done by the Bilateral trade agreement. In that
bilateral trade two country India and Mauritius are doing a business without
any trade restriction.

 several bilateral agreements are signed by India and Mauritius.

 Some important agreements are the

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 1) Double Taxation Avoidance Convention (1982),

2) Bilateral Investment Protection and Promotion Agreement (1998),

3) Air Services Agreement (1972; amended in 1995),

4) Agreement for Cooperation in Information Technology (2000).

 There are some agreement done by india to Mauritius which is include as a

Bilateral Investment Defense Cooperation. and other is a making easy visa
procedure, policy of credit term and educational relationships.

 The export of goods in 2010 it was 61,990 but In 2011 64688 so there is
change of 2,698.so as we can see the change of 5% change in total export of
goods from the mauritious to other country .The domestic export of this
country was 50,621 in 2010.in 2011 it was 54,437.so there is change of 3816.
So it is 7% minor change in domestic change compare to 2010 to 2011.

 The total exports from the home country to host was 69,550 In 2010 and in
2011 it was increase by 75,916. the change of 6,366 .

 The total import is more compare to export from this country .in 2010 it was
1,34,882 after one year or 2011 it was 1,48,081.the change is 13,199. The
total percentage is change by the year increases 9.7%.

 Now consider about a Mauritius commodity trade in other country. Like

beverages and tobacco, crude oil, mineral fuels, chemical and related
products, manufacturing good, textiles yarns, machinery etc.

1) Beverages and tobacco: The imports by the Mauritius in 2010 it was 1305
and in 2011 it was 1616.it changed by 311 million .the change by percentage
of 23% in 2011 from 2010.

2) Crude materials, inedible, except fuels: as above mentioned in chart in

2010 it was 356 and in 2011 it was 362,the imports increase by the 6 million
from India. the percentage of change in 2011 was 1.6%.

3) Mineral fuels, lubricants and related materials: imports of the mineral of

fuels in 2010 it was 18 million and in 2011 it was increase by 19 million .it
was increase by 1 million .

4) Animals and vegetable oils, fats & waxes: Imports of oils by Mauritius in
2010 it was 2 million and it was increase by the 40 million ,it was so much
shocking things import activities and it was increase by 38 million .

5) Chemicals & related products : imports of chemicals and related products

was 2344 million in 2010 and it was decrease by -1729million .it was
decrease by 615 million.

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6) Manufactured goods classified chiefly by material: Imports from Mauritius
in 2010 it was 737 million and after one year in 2011 it was -663million .it was
decreased by the 74 million.

7) Machinery and transport equipment: Imports from Mauritius to India it was

1085 million and in 2011 it was 1308 million .it was increase by 223 million.

8) Miscellaneous manufactured articles: Imports of manufacturing articles in

2010 it was 697million in 2011 it was 751 million ,it was increase by 54
million.

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 LEGAL ENVIRONMENT,
WTO AND OTHER TRADE
UNIONS AND ITS
IMPACT ON COMMERCE
AND INDUSTRY

74
TRADE UNION
Unions are groups created in order to create fairness and job security in the
workplace
The Trade Union as “Any combination whether is permanent or temporary
mainly for the purpose of regulating relations between workmen and employers or
between employers, and includes any federation of two or more trade unions.”
Western countries can be traced back to the 18th century. Industrial
Development of India on the Western model, but started from the mid-19th century.
The main benefits of trade union

 Negotiation
 Representation
 Information and advice
 Member services
Major Trade union in India

 The Indian national trade union congress

 The All India trade union congress
 Hind mazdoor sabha
 The united trade union congress
 Centre for Indian trade union
The Indian national trade union congress party and formed the congress leaders
like Nehru and Patel INTUC were involved.
The All Indian trade union congress is the first trade union communist party in
India.
Hind mazdoor sabha is organized to keep its members free of any political or
other interference outside.
Other Trade Unions are

 Bhatia mazdoor sangh (BMS)

 National organization of work (NOW)
 National front of Indian union (NFIU)
 Trade union congress committee (TUCC)
Trade Union works in Mauritius
Federation of Trade Unions of Public Service
Federation of Progressive Unions
Mauritius Labor Congress
Mauritius Trade Union Congress
Confederation of National Trade Unions
Organization of African Unity Artisans
Telecommunications Employees and Staff Association

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Other Trade Block is

ANDEAN (Andean Community)

BSEC (Organization of the Black Sea Economic Cooperation)

CARICOM (Caribbean Community)

ECOWAS (Economic Community of the States of West Africa)

EFTA (European Free Trade)

SAARC (South Asian Association for Regional Cooperation)

SADC (Southern Africa Development Community)

The Mauritius Cargo Community Services (MCCS) is a partnership between

the public sector and the private sector, including the Mauritius of Industry and
Commerce, the Mauritius Export, the State Investment Corporation and the Mauritius
Ports Authority.
A union can be saved if the union's executive committee is made strictly according to
the provisions of the law.

Unions are democratic organizations that are accountable to their members for
their policies and actions. Unions are usually modelled on the following structure:

 Members
 Stewards
 Branches
 Districts and/or regional office
 National office
Each union member pays a subscription. The amount varies from one union to
another and is normally set at different levels depending on how much people earn.
It is usually between £ 5 and £ 8 per month. Some unions to reduce costs for
members unemployed.
Strength of Trade union

 Development of a strong base

 The elimination of political influence
 From a trade union is an industry
 Internal leadership development
 Financial stability
Weakness of Trade union

 Uneven growth
 Open-ended
 Outside leadership
 Financial problem
 Multiplicity of union
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Trade unions have some strength and some weakness.

In 2003, union business membership in other country, estimated from the

Labour Survey, was 7.42 million Euros. The proportion of all employees who were
union members was 29.1%. These are overall figures, but union membership varies
greatly by industry and the types of jobs that people do.

WTO
The World Trade Organization (WTO) is an international trade institution. The
WTO superseded the GATT and Mittal. The GATT was a provisional, multilateral
agreement governing international trade from 1947 until January 1, 1995. The
establishment of the WTO was negotiated in the last GATT round, the Uruguay
Round. The WTO hereditary a number of core principles after the GATT. These
ethics include.

 Non-discrimination, which in practice means clustering two things. The first

principle is MFN - Most Favoured Nation treatment. Any trade concession
nation offers to single member, it necessity offer to all. The second principle is
nation-wide treatment. This earnings clustering That imported products must
be Treated the same as domestic goods.
 Reciprocity of Trade Concessions.
 Trade Liberalization.
 Transparency and predictability in import and export rules and regalement’s.
 Positive behavior to less Developed Countries.
 The General Agreement on Trade in Services (GATS) adds services.
 Trade in Intellectual Property Rights (TRIPs) adds copyrights, trademarks and
patents.
 Trade Related Investment Measures (TRIMs) sets rules for Foreign Direct
Investment.
 Government Procurement (GPA) & the Information Technology (ITA)
International agreements misuse rules on new product areas.

These new agreements are ambitious from the rule governing additions to the
world trading system. However, at this workshop there are significant enforcement
problems and loopholes thatnumerous countries use to evade their obligations. It is
not yet clear if thesis agreements will profit the U.S. in the extended run.
The WTO currently HAS 132 members and 31 nations are actively seeking to
join. The U.S. plays significant role in all year accession negotiations; Ensuring That
U.S. economic interest Represented are well.

77
TRADE & INEQUALITIES
Where trade HAS Contributed to Increased inequality, it HAS Generally Being
minor impact to others factoring, most is notably Technological Change.
STRUCTURAL ADJUSTMENT & TRADE
If Trade Reforms are introduced, economic exchange needs to be made.
Import-competing FIRMS APPEAR to adjust by Reducing mark-offs Increasing
efficiency & Reducing Often by firm size.
TRADE & POVERTY
One of the biggest challenges facing the world community is to address how
to poverty.

INDIA AND THE WTO

 During the period under review, India continued to reap benefits HAS from the
process of structural reform and Trade Liberalization Initiated in the early
1990s. This Contributed to the high GDP growth rates Reached, the resilience
of the Indian bargain to the global financial crisis, and the expansion of
exports and imports Both.

(1)ECONOMIC ENVIRONMENT
 The Indian economy continued to expand at a fast pace falling on the review
period, the mild slowdown DESPITE Caused by the global financial crisis in
2008/09. Annual real GDP growth Be around over 8.4% Between 2006/07
and 2010/11, supported by strong domestic demand Primarily.

(2)TRADE ALSO INVESTMENT POLICY FRAMEWORK

 India is an original Member of the WTO and at least MFN treatment Provides
to all Members and other exchange partners. India putative the Fourth and
Fifth Protocols and is a Member of the Information Technology Agreement.

(3) TRADE POLICY BY MEASURE

 India HAS continued to streamline customs procedures and trade facilitation
Implement measures. An electronic system for customs clearance and has-
beens Introduced a risk management system is in place to selectively screen
high-risk cargo and medium-customs for examination.

(4) TRADE POLICIES BY SECTOR

 The structure of India's economy HAS not changed significantly since 2007.
The services sector, Which was the MOST dynamic sector falling on the
review period, continued to be the Largest contributor to GDP and HAS
Exhibited resilience to the negative effects of the global crisis. The share of

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 the manufacturing sector in GDP Declined: slightly HAS, HAS and so
agriculture.

MAURITIUS & THE WTO

 Since independence in 1968, Mauritius has enjoyed strong HAS pluralistic
democratic system and human rights record a sound. It is now leading an
open and constructive dialogue with stakeholders on governance issues, civil
society and Its Including main development partners. The Government
Remains Committed to further Top improvements in governance as reflected
in the broad governance Commitments made in the context of the 2008-2013
European Commission - Republic of Mauritius Country Strategy Paper (CSP).

CHALLENGES FACED AND OUTCOMES

Mauritius is situated at a considerable distance from international markets
with significant purchasing power. Transportation Costs are onerous and market
development can be expensive. The country benefited importantly HAS past thirty
years over the preferential arrangements for sugar from Purchases by the EC as well
as from the fait que the quota restraint system for international trade in textiles and
apparel Helped to create a significant garment producing industry on the island.
TEXTILE AND CLOTHING PRODUCTS
A combination of late 1970s Developments in the early 1980s and gave rise to
the establishment of a significant textile and clothing industry in Mauritius. Incentives
under export processing area year scheme combined with visa-related enticements
to Hong Kong-based entrepreneurs fearful at the time of reintegration with China and
the existence of quota allocation possibilities led to rapid development of the export-
oriented sector.
FINANCIAL SERVICES
Recognizing That rising income levels and a more well-educated populace
Would create a demand for more employment in white-collar service industries, the
government and the private sector Have collaborated to create very Effectively year
environment in Mauritius HAS Which allowed the financial services sector to Become
a Major and prosper and growing share of the island's economy. The concept and
Supporting legislation for offshore banking Were Introduced in 1991, Supplemented
by lower tax rates for Particular Types of bank.
ALTERNATIVE AGRICULTURAL ACTIVITIES
With sugar in a position of long-term decline, business and government in
Mauritius are discussing and experimenting with alternative agricultural activities.
Although agriculture is unlikely to form a major share of the Mauritian economy of the
future, a number of initiatives are Currently Being Explored in Sectors That Seem to
offer some promise.

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(1) THE ECONOMIC ENVIRONMENT
Relatively diversified Mauritius HAS economy based on traditional oven its
pillars: sugar, textiles plus clothing, tourism, financial services. This structure is the
heritage of preferential access to some key markets, as well as the incentive
schemes (mainly the Export Processing Zone (EPZ) Scheme) Aimed at export-
oriented manufacturing. This, calm with fairly high safety Granted to Companies
Producing for the domestic market, economy annually HAD created with items of
duality.

(2) INSTITUTIONAL FRAMEWORK

The Constitution is the supreme law of the Republic of Mauritius, Surveyed by
Acts of Parliament, and subordinate legislation (regalement, rules and orders).
Treaties, Including the WTO Agreements, must be enacted into law to domestic
Have standing before state courts.

(3) TRADE POLICY INSTRUMENTS

Mauritius HAS bound 15.7% of all tariff lines its, at a ceiling rate of 65% on
some tariff lines of 1.6% for non-agricultural products, and at ceiling rates ranging
from 37% to 122% for all agricultural tariff lines (WTO definition ). Other duties and
charges (ODCs) are bound at 17% on all products subject to a tariff binding
commitment, with the exception of frozen boneless beef meat, milk and cream,
administered cheese, stones potatoes, peas, maize, and printed matter, we Which
They are bound at zero

(4)SECTORAL TRADE POLICIES

Mauritius is a net-food-importing country. Agriculture (Mainly consistent of
sugar production) continued to be significant year in terms of sector share in exports
and acts on account of linkages with other Sectors its.
FUNDAMENTALS OF LAW
Mauritius is a member of 1958 New York Convention on the Recognition of
Foreign Arbitral Awards which are render the place of an arbitral proceeding more
likable in Mauritius and which also contributes to positioning the MCCI Arbitration
Court as the main centre in the region of Mauritius.

LEGAL ENVIRONMENT IN INDIA

Intellectual property protection Act:-
Before joining the WTO, India recognized only the following forms of
intellectual property as under:-

80
  Patents
 Trade Marks
 Copyrights
 Industrial Designs
Agreement on the Trade Related aspects of the Intellectual Property Rights
(TRIPS) required India to enact the new legislation in the respect of ‘Geographical
Indications of Goods’ and ‘Integrated Circuits and Industrial Secrets for company’,
besides effecting the significant changes in the existing laws on the Patents,
Trademarks and Copyrights. India has now put in the place new laws extending
intellectual property rights to all the convention countries on the most favored nation
(MFN) basis.
BUSINESS REGULATIONS
India’s business regulatory environment covers all aspects of the trade,
industrial activity, taxes, foreign import export, competition, intellectual property and
social security. India administers policy regulations and procedures for a system of
notifications, which requires interested persons to the continually keep track of the
latest amendments applying to their business interests.
FOREIGN EXCHANGE REGULATIONS
Liberalization of trade and investment policies in the 1990s has progressively
seen India move Toward the liberalizing its foreign exchange regulations. Foreign
exchange related regulations are Embodied in the Foreign Exchange Management
Act (FEMA) of country, which has progressively in the Simplified foreign exchange
transactions:

INDUSTRIAL LICENSING REGULATIONS

India’s New Industrial Policy (first announced in 1991 and modified several
times subsequently) monitors certain types of industrial activities through compulsory
licensing.

TRADE REGULATIONS
Simplification of export-import regulations has been a highlight of India’s
reform process, especially in the post WTO period. India’s current trade regulations
consist of import and export.
IMPORT RESTRICTIONS
Prohibited items like tallow, animal fats etc
Restricted items-which can be imported against a specific import license or by
special notifications and special permissions. Restrictions may be on account of
phytosanitary considerations for propagating materials (seeds, cuttings). or on
grounds of no essentiality such as alcoholic spirits, and certain types of consumer
goods.

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EXPORT RESTRICTIONS
Exports categories of goods is freely allowed and encouraged, except for the
following:
Prohibited items – on the religious grounds (beef for example) or environmental and
bio conservation of grounds all wild animals and exotic birds and their parts, and
endangered plant species declared under the CITES convention seashells of
certain species
THE MAURITIAN LEGAL SYSTEM
Mauritius had an inherited its laws from its 2 successive colon administrator,
France and Great Britain. Each one of these period has left a deep imprint on the
legal system of Mauritius for doing business. As a consequence there of, our system
is often referred as a mixed or complex legal system of Mauritius.
MAURITIUS BUSINESS ENVIRONMENT
Mauritius is well served by business and telecommunications in development
infrastructure for doing business and is a dynamic economy the government actively
interested to motivate foreign investment and offshore activity through the Board of
Investment.
MAURITIUS FREE TRADE ZONES
N.B. many of the benefits of the EPZs are being phased out as part of a tax reform
programmed aimed at unifying and simplifying the Mauritian tax regime for doing
business.
LABOR LAWS AND LEGAL ENVIRONMENT OF MAURITIUS:

 Labor laws and social security system

 Legal environment in India
 Business regulations
 Commercial laws and tax system
 Foreign investment regulation
 European investors in India

FOREIGN INVESTMENT REGULATIONS

India’s present policy framework for inward FDI was introduced by the
Industrial Policy Statement of July 24, 1991. The framework has subsequently
included and enlarged in line with reforms and structural developments in the
economy. The present policy allows foreign investor to invest in resident entities
through either the automatic route or the government-administered routes.

FDI PROCEDURES AT THE FEDERAL LEVEL

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  Approval for FDI is granted through the automatic route (which does not
require for pre-approval from the government) or government approval
(through the Foreign Investment Promotion Board-FIPB)
 In case of automatic approval, investors are required to notify the concerned
regional office of the Reserve Bank of India (RBI) within 30 days of receipt of
inward remittance and file require for documents with that office within 30
days of issue of shares to foreign investors in country. Under the government
approval route for investment.
 FDI proposal received by the Department of Economic Affairs (DEA),
Ministry of Finance (MOF) .However proposals from nonresident residents
and single brand retailing are received by Department of Industrial Policy &
Promotion (DIPP), Ministry of Commerce & Industry (MOCI) for India.

INDIAN LEGAL SYSTEM

Article 309 of the Constitution which occurs in chapter 1 of Part XIV deals with
the recruitment and conditions of service of persons serving the Union or a State of
country. It empower the appropriate Legislature to regulate the recruitment and
conditions of service of persons appointed to public services and post in connection
with the affairs of the Union or of any State in the country.
Six essential sources of law of India

 Customs
 Religion
 Judicial Decisions
 Scientific commentaries
 Equity
 Legislation

LEGAL SYSTEM
The Republic of Mauritius (“Mauritius”) obtained its independence from Great
Britain in 1968 and republic in 1992. Mauritius was maintaining the membership to
the Commonwealth after its accession to the status of republic. A statement on
judicial review of legislative acts is also included for a number of countries.

BASES FOR LEGAL SYSTEMS

Three heritages form the bases of a major of the legal systems of the world.

- Common law
- Civil or code law
- Islamic law
-

83
COMMON LAW

A type of legal system often synonymous with "English common law," which is
the system of a England and a Wales in the UK and is also in forces in
approximately 80 countries formerly part of or influenced by the former British
Empires.

ISLAMIC LAW

The most widespread type of religious laws, it is the legal system enforced in
over 30 contrary and particularly in the Near East, but also in Africa, Indonesia,
Central and South Asia. In many countries Islamic law operates in tandem with a civil
law systems

NAPOLEONIC CIVIL CODE

A type of civil law referred to as the Civil Code or Code Civil des Francais and
the forms of the legal systems of France, and underpins the legal system of
Lebanon, Poland, Bolivia, Egypt, and the US state of Louisiana’s.

JUDICIAL SYSTEM OF MAURITIUS

Mauritius has a single-structured judicial system consisting of two parts- the

Supreme Court and the subordinate Court. The Courts consist of the District Court,
Rodrigues Court Intermediate Court and Industrial Court.

SUPREME COURT

The Supreme Court is composed of the Chief Justice, Senior and Fourteen
Puisne Judges. The Judges are also Judge of the Court of Civil and Criminal
Appeals. It is a superior Court of Record and has unlimited jurisdiction to hear and
determine any civil and criminal proceedings and has the same original jurisdiction
as the High Court in England.
TYPES OF LAW
CORPORATE LAW
Our firm advises on all aspects of corporate laws. We provide assistance on
the most appropriate and tax effective structure of a company and attend to all legal
matters which may affect by near or far, the company’s business affairs.
INTELLECTUAL PROPERTY
Intellectual Property is an area which has proactively evolved in Mauritius
during the last decade to keep pace with international developments and the needs
of emerging technology. Mauritius has signed and ratified various Conventions and
Agreements relating to the protection of Industrial Property Righet.
LABOUR AND EMPLOYMENT LAW

84
 Employment law issues arise at any time and at all staff levels of a
company’s structures. Our firm regularly assists clients by drafting tailor made
employment contract. We also provide assistance on industrial relations matters
involving negotiation, disciplinary hearing or court representation in the event of
litigation

LEGAL ENVIRONMENT BY SECTOR

The Republic of Mauritius are a parliamentary democracy modeled on the

British systems. The separation of powers among the three branches of the
Governments, namely the Legislatives, the Executive and the Judiciary was
embedded in the Constitutions. The President is the Head of State while the Prime
Minister has full executive power and is the Head of Governments.

COMMERCE AND INDUSTRY: MAIN LEGISLATIONS BY SECTORS

A. LAWS APPLICABLE TO ALL SECTORS:

COMPANY AND BUSINESS LAWS

USLegal.com states that "business laws encompasses the law governing contracts,
sales, commercial papers, agency and employment laws, property, and bailments and
business organizations."

TAXATION LAWS

In the United States, Congress makes all federal laws, including taxation laws.
State legislatures make all state laws, including state taxation laws. If authorized by
the state constitution and/or the state legislature, local government bodies

TRADE AND CONSUMER PROTECTION LAWS

The consumer law was designed to assist us as consumer's from being taken
by organizations who may try to sell us faulty products that may not works properly,
over priced or any others deficiencies that may be evident.

PROPERTY LAWS

Laws created by governments in regard to how individuals can controls,

benefit from and transfer property. Economics theory contends that government
enforcement of strong property rights is a determinant regarding the level of
economic success seen in the area.

85
EMPLOYMENT LAW

Employment law, also known as labour laws, covers a broad spectrum of

issues and problems that may arise from the employer-employee relationships,
including current and former employees and job applicant. When employment arises
as a result of a valid contract between an employer and employees, state law alone
may apply

COMMUNICATIONS AND MEDIA LAW

Communications & Media Laws encompasses laws regulating radio and TV

broadcasting to assure satisfactory service and to prevent chaos.

B. MAIN LAWS BY SECTOR

COMMERCE AND MANUFACTURING

The MCCI, established in 1850, is the oldest non-profit making institution
representing the private sector in Mauritius’s. With the increase in the island volume
of trade during the first decades of British administrations, the Mauritian business
community felt the need for a formal representational and arbitration framework to
foster the interests of the trading community and to settle disputes and conflicts
arising in trade-related activities

INFORMATION AND COMMUNICATION TECHNOLOGY

The law relating to information technology and communication is relatively
new and the state of development. Information and Communications Technology
Laws are the most detailed and most up-to-date publication covering the law relating
to information and communications technology and provides a thorough
understanding of the law with reference to legislations, case law and common law.

LAW RELATED WITH FINANCIAL SERVICES SECTORS

The Legal Departments makes available two types of services:

1. The information regarding the legal and administrative aspects of
business undertakings in Mauritius, intellectual property rights, in particular
company law, laws related to business environments, and to fair competition
and trading practices.

2. an efficient settlement of trade dispute mechanism with the setting up of a

Permanent Court of Arbitration which offers the following advantages.

86
TOURISM INDUSTRY

87
 TOURISM IN MAURITIUS

In Mauritius, tourism is one of the most important pillars of the economy contributing
significantly to economic growth and has been a key factor in the overall
development of Mauritius. Mauritius is predominantly a holiday destination for
beach-resort tourists.

The National Tourism Policy emphasizes impact was low, high spending tourism.
Up-market, quality tourism is favored, and although such tourism is not the only kind,
it constitutes the major segment of the tourists who stay in high class hotels.

Tourism is considered by many to be the largest industry in the world and the fastest
growing. Tourism provides many benefits for host communities and countries, but
there are also negative effects. And conducted impact studies in order to improve
our understanding of the positive and negative impacts of tourism so that steps can
be taken to mitigate the negative impacts and work on the development of
sustainable tourism. In other words, it is concerned sustainable tourism development
to maximize the benefits and minimize the negative impacts.

Tourism is seen by governments and a useful tool for economic development.

Tourism may provide economic benefits as follows: Work: Tourism is a labor-
intensive industry, entrepreneurial; Tourism encourages other industries, particularly
in the services sectors of the economy. Contribute to tourism in the four key areas of
the national economy: Income Balance of payments employment Regional
economic development.

Tourism has become the main focus of the countries mainly for Small Island
developing States and affected population in terms of economic and social impacts,
cultural and environmental. Therefore, there is a need to understand how to
contribute to perceptions of local residents towards tourism. The purpose of this
study is primarily to provide the theoretical basis and framework to assess the
attitudes of the host on the environmental impact of tourism in Mauritius. Tourism
and the environment are interdependent, have been identified on the relationship

88
between tourism and the environment globally with rapidly growing demand of
tourists to interact with the natural environment. Tourism has the ability to maintain
as well as the destruction of the environment. Environmental impact study is a critical
component of understanding of how the impact of tourism on the environment in
Mauritius.

Extensive studies covering the nature of the interaction of the main tourist and host,
the host and the characteristics of the relationship and their association with the
tourist environment. It is a fact that the noise pollution from airplanes, cars, and
buses, discotheques and recreational vehicles has become a growing problem of
modern life. Noise, pollution and cause disturbance and discomfort in people's lives,
and stress for humans also cause shortness of wildlife in sensitive areas. For
example, it can be noise generated by the cars of tourists cause animals to change
the normal activity patterns. There is a lack of planning, which failed to integrate
tourism structures. Large resorts may clash with the original design.

Tourism is still very much a growth industry in Mauritius. There is no doubt that
tourism contributed significantly to the economic progress of the island and the
general welfare of its population. In fact, tourism is the third pillar of the Mauritian
economy is, it is clear that tourism will continue to be an important contribution to the
economy in the coming decades. Therefore, Mauritius Tourism is an important part
of the economy of Mauritius as well as an important source of foreign exchange
earnings.

The tourism industry is an important economic mainstay on the island of Rodriguez,

tourism has provided only in the Agalega Islands. Of Mauritius is mainly by tourists
because of its natural beauty and man-made attractions valued and multi-ethnic
diversity and cultural rights of the population, and the tropical climate, beautiful
beaches and water sports. Various national agencies and government bodies,
including the power Mauritius Tourism Promotion, Water Authority, the Central
Ministry of Environment and quality of life, and the Ministry of Fisheries and Marine
Resources, Ministry of Energy, Ministry of Health, Ministry of Housing, land and
urban and rural planning, among other things, the promotion of sustainable tourism.

89
 AS PER SWOT ANALYSIS FOLLOWING WERE THE
MAJOR ESSENTIALS EXPOSED

Strengths

Mauritius has one of the most successful and competitive economies in Africa. It is
the fastest growing economy in Africa.

 It has been recognized as the top regional business reformer, the best place
is in Africa in which to do business.
 Doing Business Survey ranks Mauritius first in Africa and 24th in the world for
ease of doing business.
 A really nice infrastructure with superb communications is available.
 An outstanding network of sea and air transport
 A highly literate, bilingual and friendly labor force
 A well capitalized and profitable banking sector has made it possible to
support growth while limiting foreign debt.
 It has maintained good relations with countries in the West and on the Indian
Ocean Rim.
 Among Africa's most developed countries, Mauritius has benefited by a good
political and institutional situation.

Weaknesses

 Overdependence on exports of textile products and sugar and to vulnerability

to climatic conditions and unforeseen fluctuations in export prices.
 The sugar and textile sectors that generate nearly 20 per cent of jobs and 40
per cent of exports have suffered from the failure to extend preferential trade
agreements.
 The restructuring needed in these two sectors could increase unemployment
and create a possible source of social unrest.
 The high debt accumulated by the public sector — 72% of GDP end 2005 —
reflect its persistent difficulties.

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Opportunities

 Accommodation
 Religion
 Culture
 Family
 Weddings & Honeymoons:
 Beaches
 Spas & Wellness
 Watersports
 Diving
 Saling & Sea Excursions
 Land-Sports
 Golf
 Green Tourism
 Medical Tourism
 Cuisine
 Essence & Senses
 Shopping
 Sky-Diving
 Cruises
 Luxury Resorts
 Tourist Villages
 Night Life
 Casinos
 Patrimoine Mauricien - Lieux de Culte

THREATS

 Telecom liberalization stalls

 Future governments not committed to ICT
 High risk on Natural Disaster
 Other competitors in the offshore software industry
 Tourists threatens the Mauritius coral reefs
 Growing littering is threatening to put off all the mainly upmarket tourists who
flock to the Indian Ocean island famous for its pristine palm-fringed beaches.

91
 AS PER PESTLE ANALYSIS FOLLOWING WERE THE
MAJOR ESSENTIALS EXPOSED

 Political environment

Need of a more stable policy, Riots such as the death of singer Kaya should not
happen because that doesnot make tourists feel safe, and therefore will prefer non-
attendance to Mauritius and this too has a negative impact on the tourism industry.

Government may adopt an open skies policy of Mauritius, to allow more airlines to
come to Mauritius. This may lead to mass tourism, and if they are not prepared
Mauritius for this type of tourism, and will soon become saturated with the problems
faced by mass tourism, will not be sustainable sites correctly. Moreover, it was found
that rely on mass tourism can have a devastating impact on tourism by the World
Trade Organization said that Mass tourism involves important risk of financial system
needy tourism. Depression and the effects of natural disasters such as tropical
storms and hurricanes, as well as varying patterns Tourism can have a devastating
impact on the local tourism industry as per declared by Dr. Amen, in the learning of
tourism and financial development. May the constant increase in taxes have an
impact on stakeholders in the aviation industry and accommodation?

There is also a control on the revenue generated by these organizations by the

government. It interferes a lot in return benefits and profits, even if everyone knows
that affected Mauritius due to lack of profits available for welfare Mauritius but it may
be detrimental to Mauritius in the case of leaving any of the profits. Government
must bear in mind that it should simply instead of little ambition higher and receive
nothing in return. This has a negative effect on foreign investors, who frustrated by
investing in Mauritius due to the fact that they will be able to take advantage of the
profits generated in their homeland should this cause a problem for the tourism
industry in Mauritius.

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 Economic environment

The Council of Ministers can withdraw and Minister of Finance and five others raises
the political crisis that is likely to shake the growing economy of Mauritius , one of the
most stable countries in Africa, which is a financial hub and a magnet for tourists.

The tourism business never die away to develop ,regardless of the trouble it has
come across in recent few years, for instance the credit crisis, violence, incessant
escalating fuel charges along with the fatal disease spread , the avian flu (bird flu).

As per the statement given by the World Tourism Organization (WTO), tourism
turned out well again sturdily in the year of 2010 according to the observation made
by United Nations World Tourism Organization (UNWTO). Tourist influx has been
increased by approximately 7seven percent, that if we look in numbers of population
it is about 935 million, subsequently decreased by around four percent in 2009
when the world faced the most potent economic crisis.

Tourism in Mauritius is considered as the largely imperative base as far as the

economy is concerned as well as major reason for generating money in various tiny
island developing states. It is turned out as the foundation of occupation
establishment and profits in favor of undersized land mass citizens.

A transformation in the sightseeing requirement for an atoll might encompass a key

blow on the GDP (that equals to sum of cost of goods and services formed in a
nation during a definite phase of instant, generally one year), the financial statement
and the Balance of Payments.

93
 Social environment

Here, the social impacts in the tourism industry of Mauritius can be easily
understood by the following points:

 Decrease of public access for Mauritian population,

 Influences on values and way of life,

 Different languages, traditions, cultures, cuisines,

 Respect & entertainment of guests embedded in culture itself,

 Increase in prices,

 Increase of import and,

 Influences on commercial balance.

The Mauritian Government has been investing in its human capital. It spends about
50% of its budget on a comprehensive welfare system. It comprises of free health
care, free education, universal non – contributory pension for the elderly and a
number of schemes for the vulnerable schemes.

In addition to this, the income support programmes like free transport systems for the
students and the elderly have also been established. Then, subsidies on basic
commodities like flour, rice and cooking gas have been also maintained.

Innovative strategies and policies have been implemented in different sectors in orde
r to promote social advancement.

94
 Technological environment
Here, the technological conditions in the tourism industry of Mauritius can be easily
understood by the following points:

 Role of web and internet is increasing day-by-day.

 It facilitates online booking for the tourists.

 There is an efficiency of economy.

 The tourists are being provided easy payment facilities via online and use of
credit cards.

 Wi-Fi facility is also being provided to the tourists of Mauritius.

 Other facility like, easy recharge of mobile phone is also being provided.

 VIP laser clinics are also set up in Mauritius.

 Mauritius satisfies many of the conditions to become a medical destination for

tourists.

 It benefits from the latest technologies and cosmetic surgery or dentistry

equipments. Here, clinics and private health centres are also supported by
modern diagnostic, medical centres and laboratories.

 Sun Resorts are attached to all aspects of environmental conservation,

ranging to defense from marine and land eco-systems to the use of new
sources of energy in Mauritius.

Thus, the technological condition in the tourism industry of Mauritius is increasing

very rapidly.

95
 Legal environment
The government and most of the operators in the sector of tourism arrivals expect a
significant increase in the coming years. Given the potential increase in the number
of arrivals, it becomes important to study and understand the dynamics of the
industry, and their impact on the environment, whether physical or social implications
manifold increase in the number of arrivals will bring to Mauritius.

Objects and functions of Authority ,Objects of power must be –

 To improve the social, economic and Environmental Benefits To Mauritius

from Tourism;
 To promote sustainable the tourism industry in Mauritius.
 The formulation of this policy, nationally Integrated Planning for Tourism
Industry as it deems necessary;
 Coordination of activities Of various Ministry of organizations concerned with
the tourism industry, both in That the private and public sectors;
 Issuing guidelines for development
 Supervision of the general operating Firefox tour companies;
 Create code of practice and standard exit load or run Tourism companies and
monitoring compliances with such Code of practice and Development of
standards;
 Provide advice to the Minister on the structure of the license fee for the
tourism industry;
 Provide advice to the Minister on legislative provisions of frames.

Powers of authority
 Authority may do all the things NEC or convenient to be done for or in of its
functions.
Powers and the authority of the Iraqi National Congress but may not be
limited to, the ability to -
 Studies Committee and consultancy the Origin in with respect to any
specifications IFIC Or public Issue affecting the tourism industry; Review, on a
regular basis, and economics
 Performance, as well as problems for the tourism industry.

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 Environmental condition
Linkages between tourism and the environment are very clear in all countries,
but more importantly, on the small island developing countries, such as Mauritius,
where tourism is a major part of the economic development. And each island can
be considered as a coastal area, because many causes of environmental
degradation comes the whole of the island to the beach and the lake. Given the
type of tourism - beach tourism - all developments are concentrated on the beach
in very fragile eco systems. In Mauritius, and environmental issues are more
important, because of the strong economic growth.

On the physical environment, and tourism development because the government

was forced to take the environment in mind:

 Tourism also allowed the harmonious development on the coast

(landscapes, architecture interesting, clean areas ) that serve many
examples of companies.
 This is especially true on the hotel complexes, produced by the foreign
companies. There is a positive effect of environment is economic: direct
labor and indirect effects on all sectors of the economy: Fishing,
agriculture, and services ...; big entrance of currency into the country.
 The social impact of: spaciousness chest, good connections often with the
Europeans, in contrast to relations with the European origin's local people,
which gives them another picture of themselves.
 On the contrary, environmental degradation due to other economic sectors
has a very negative impact on tourism development: industry, agriculture,
fishing, urbanization, and sand mining. Piles of industrial and domestic
garbage, the gradual disappearance of natural spaces on the beach water
quality of the lake and the Dead coral (noticed by a large number of
tourists),decline in relational qualities due to the number of tourists as well
as for social and economic change structure.
 On a long-term basis: coastal erosion, degradation of coral reefs: More
and more projects in areas that were previously inaccessible, very fragile,
especially on islands the island and the main areas that have been
announced public beaches or in the process of being declared general,
because the interesting areas of tourism developments have become rare.

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 Competitor analysis -

The most famous tourist places in world are

(1)Maldives,

(2) Seychelles,

(3)Mauritius

(4)Andaman-Nikobar

(5)Switzerland

(6)Sri-lanka

But looking from current scenario, people generally focuses mainly on maldives ,
mauritius and Seychelles. This all destination offer some of the most exceptional
and luxurious resorts – and unforgettable holiday experiences – anywhere in the
world.

98
 APPLYING PORTER’S FIVE FORCE MODEL IN
TOURISM INDUSTRY OF MAURITIUS
The hotel industry is a highly competitive one, where basic products and
presentations can be very similar, and therefore the need for differentiation.
Communications of the differentiating factors is crucial for customers to recognize
the differences.

Alternative industries that provide a competing product with offers that perform the
same function. Continuous advancement in technology keeps on changing the
potential threat of substitute products. For example, the rapid development of video
conferencing is an alternative product for meetings hotel.

The tourism industry, leisure and hospitality industry is essential. This industry
involves a wide range of activities which include providing transportation, lodging,
entertainment, food, and related services. Travel is for all purposes, including
recreational and commercial. Hospitality and tourism are certainly two of the most
commonly used words widely in the areas of hotels, restaurants, travel, and related
fields. Entertainment includes events that are hosted regularly to relax.
Entertainment and constitutes a key factor contributing to the demand for tourism
and recreation (Kotler and Keller, 2006).

The Porter (1980) that the most important factor of potential profits on the market is
the core strength of buyers and sellers. The threat of alternatives provides the
tourism industry, leisure and hospitality up opportunities to start new businesses and
successfully progress. Companies have been classified into a set of standards. It
has been done with variations in the levels of services and facilities. Ongoing
challenge to any business is always how to get customers to choose their services
on a competitor.

The industry as the information industry based on the consumer, and technological
advances in the Internet makes the overall market to be more efficient, and at the
same time expanding the size of the potential markets and creates new threats
replacement. Given the strength of the industry is required to design a tool economic
efficiency threat analysis is that a series of other company could easily erode the
customer base with the newly formulated marketing campaign.

According to Porter, the development of value chain process analysis, which is

supported collaborative event management, structuring and sharing focused
customer value chain, and enhance the overall performance of the value chains
bargaining power of buyers. And businessmen choose to work in the tourism
industry, leisure and hospitality from suppliers who are on an equal footing with the
changes in the ability of consumers. It is possible for consumers to survey the best
companies that offer great services. It can be done through corporate travel
consultants, the assistance of travel agents or middle men in the industry to
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determine where you will get the services. Therefore Porter expects the model's
ability to bargain buyers and business brokers.

Tourists who are the major consumers in the tourism industry, leisure and hospitality
are more and more able to take advantage of their bargaining power and thus create
a model Porter met. Due to the increased bargaining power of consumers, this
economic power shifts bargaining power to end users as expected by the model
Porter, freedom buyer reduces the cost of switching to another supplier and thus
reduce loyalty to a single company, as a result, most companies maximize the use of
their opportunity once to ensure that the client sticks to the Company by impress
other clients with unique differences and extremely valuable. Competition among
competitors in the tourism industry, leisure and hospitality is fierce. Potential
customers identify a company that offers the best services, among the competitors.
Consumers in this industry tend to seek the best price for the best experience and
the tendency of companies is reducing prices to a competitive level.

This industry covers a wider area so as to expand the market and thus increase the
number of competitors. For example, a person who wants to spend the day in a
historic site easily chooses the tour company in the neighboring city if amenities or
prices are low. Can be variable and fixed costs will be different in areas that are
more expensive to live barriers to entry.

The initial investment in the tourism industry, leisure and hospitality creates quite a
barrier to entry by new firms and the next. However some of the barriers are reduced
to enter the tourism market through economic analysis. Economic analysis gives
new competitors access to potential suppliers and resources. Even a clerk in the
industry can use the results of the economic analysis and key marketing concepts
and magic for customers.

Differentiation is a critical barrier to the entrance. The company, which can

successfully difference itself through the site, service, amenities or other quality, has
a greater potential to attract and keep customers. Another barrier to entry in the
business in the tourism industry, leisure and hospitality is the experience that the
company owns. In this industry employees can leave a series of one company to
work in another country and they take those experiences in terms of training given or
experience they have gained. And through areas of expertise and differentiation, the
company can make a significant impact on their customers. Most tour operators and
leisure and hospitality have created synergies between their businesses and
established commercial channels. The bargaining power of suppliers in the tourism
industry, leisure and hospitality, and the bargaining power of suppliers, has an
impact, especially in services. Employees of companies are the main suppliers, and
the bargaining power of labor supply is higher when there are fewer people to fill the
service department of the industry, and companies can attract excellent staff and
create an opportunity to provide excellent and exceptional experiences for their
customers. To create a reserve of its suppliers, all chains should company has a

100
department for hiring a staff member as part of its strategy. Supplies needed by
companies such as hotels are also easier to achieve if originated by the supplier or
by the hotel chain.

With products in high demand by larger numbers of companies and suppliers earn
more amount of power since there is competition for their services and products on
the results of this industry. Companies in the sectors of tourism, leisure and
hospitality industry benefits from the Porters analysis model because of its ability to
produce the greatest value in terms of profitability, the industry generally is
dominated by a small number of large companies. They have the greatest market
share in most cases that affect the structure and shape of the industry. It could be
planning sector of the company to benefit from the analysis. The company should
aim to make a profit through commercial means. The failure to achieve profits over
long periods of time is likely to cease trading. These include parks, restaurants, tour
operators and travel agents.

Can human resource management through the analysis as part of the overall
strategy as well as providing for service members who benefit from the ideas of
Porter, and can increase the value through the consolidation of companies across
multiple sites, and the formation of directories business knowledge, and to allow
access to real-time resources by consumers, all the benefits Company by controlling
and forecasting through their systems with suppliers as described by Porter. This
model leads to increased profitability (Porter, 1980).

Every kind of company needs to identify the strengths unique, target market and
align its strategy to support the identity, and corporate chains' I chose to be a low-
cost, or to command premium prices. Distinguish the company from its competitors
is vital. It can easily be enhanced through the Porter model, through superior input,
and improve staff training as part of the supplier and through effective management.
Adds value differentiation which makes it difficult for competitors in the same field to
keep the distinctive strategic locations for the company because it eases the change
to best practices and improve operational efficiency. These differences make the
business more profitable.

Companies are fragmented in the tourism industry, leisure and hospitality. Therefore
there is a need for each company to conduct independent Industrial analysis to make
it easier for consumers from remote areas and on a larger scale to identify the
company or to apply for services, consumers should be on the easy access to
services. It is likely to increase profitability when the process easy to handle and
complete. Porter refers to similar examples in the industry, and this has a direct
impact on companies. Other travel agencies who arrange to stay at the hotel,
business and tourism are always face-to-face business, and this usually preserves
the economic value of the deal. For the entire companies model Porter complement
but not dismantled the methods used in doing businesses. It thus becomes a link in
the business strategies.

101
Whether a company or its well-established series or a new will, the fundamental
forces that determine the profitability of the following:

• Threat of alternatives,

• Bargaining power of buyers,

• Intensity of competition among the competitors,

• Barriers to entry of new competitors for,

• The bargaining power of suppliers,

It helps to determine the profitability. When all these are being combined, these
factors determine the economic value and even survival.

Porter's model of industrial analysis provides opportunities for companies to create

jobs unique or distinctive for their businesses. In the case of tourism companies, this
is a critical tool of economic analysis. Porter five-factor model helps to understand
the emergence of new ideas and businesses in the context of the bargaining power
of buyers.

It helps to understand what are the factors that drive companies to differentiate
themselves are. It also helps to explain why the work may be the biggest bargain in
companies under the tourism industry; Porter's ideas on the bargaining power of
suppliers helps to determine the strength of the industry.

In reviewing the strategies most chains and differentiation is the key element. Most
companies choose to differentiate themselves through the site and luxurious
experience. Other companies differentiate themselves by unifying and stabilizing
prices. Must be aligned corporate strategies' with its business strategy in order to
produce the desired profitability; Porter's model provides a way is to highlight the
issues and risks that are inherent in all.

102
FISHERY INDUSTRY

103
History of mauritius fishery industry

Mauritius is the famous tourist sport. It is and island covered by all the side by water
so it has a large fishery industry. So it is also one of the slowly booming industries of
Mauritius. We have here focused on the history and current situation of the fishery industry
focusing on some of the facts and also we have carried out the swort analysis and five forces
that affect this industry.

Mauritius is one of the famous Tourist sport as its large part of area is surrounded by
water. It is an island. There are 30,000 inhabitants on that Rodigues island. Many small
islands are also there.2000 Square kilometers is the countries landmass. In years 1983 catch
per fisherman day and their catch were 1370 tones to 4.1 kilos. The varying catch from 1700
to 3900 tons as shown by the banks of fishery indicates considerable fluctuations.

In earlier 1980s the local fishing declined so due to that government conducted
various programmes which main aim was to provide self-sufficiency in fish. Purchase of new
vessel and construction of fishing wharves were included in the programmes.

Fisheries partnership Agreement

An agreement was signed between Mauritius and European Union in the year 2012 on
23 February. ). According to the conclusion of the survey of previous first protocol during the
period of 3 years that is from 3 December 2003-2 December 2007 487500euro was Mauritius
financial contribution and from that 195000 euro was for the development of the fisheries
sector.

Characteristics and structure of fishing industry

 Marine Fishery

The main species available here are mullets, sigannis, scarids, lethrinids. In artisanal fishery
2256 were active fishermen. In Mauritius there were 1898 fishing boats and in Rodrigues
there were 900 fishing boats. Fishing agreegating Devices encouraged fishing on large part
when there was reduction in the effort of fishing.

 Aquaculture

104
It includes the production of marine red drum fishes, red tilapia and gaint freshwater prawn.
In year 2004 361 tonnes was the total aquaculture production.

 Economic role of the fishery industry

It employees around eleven thousand people. The export earning is around 112 Million US$
even though it is enable to satisfy the local market needs. .It employees around eleven
thousand people. The export earning is around 112 Million US$ even though it is enable to
satisfy the local market needs.

Current situation of fishery in Mauritius

The fishing industry plays very important role in providing employment and various
other associated activities. The contribution of the fishing industry in Gross Domestic
Production is 1%. Two billion was invested behind seafood during the year of 2005.

In Mauritius new operators are encouraged to start and setup the fishery business.
Now on the concept open at all hours and one –at-all- hours concept the services and
procedures like unloading, export of fishes products and fishes and loading is carried out.
These processes ensure that the services are provided on weekly that is 7 days basis.

There was an increase by 16.1% export in seafood during the year2009 from the year
2007 which was 12.7%. The value of exports increase14% and the growth of seafood
industry was 5.3% during the year 2009. For the year 2010, and the goal than that is to
strengthen the industry from of through the re-investment and expansion in a new the
activities.

Promote new activities is partly the integration of other development functions and
partly in search of new opportunities. I order to produce commercial viable idea the scientist
economist, and technicians were not clear.

Fish production went up by 25.6% to reach 4,125 tons in 2012 from 5,542 tonnes in
2011.ThisThe decline was attributed to a drop of 35.0% in the production of other fishing

105
(tuna, bank etc.)3,442 tons in 2011 to 2,237 tons in 2012 along with a decline of 10.1% in the
production of Coastal fresh fish catch of 2,100 tons in 2011 to 1,888 tons in 2012.

The seafood industry in the last three years, Mauritius has undergone a major
expansion. In 2011, the sector's contribution to GDP was 1.3%. If the Seafood sector exports
15% of total goods exports. Two in 2012 to expand the reach of small-scale project was
launched with the aquaculture; two pilot projects will be launched in Le Morne and
Mahebourg. .VAT paid on equipment, which in 2012 and the scheme for the fisheries sector
like VAT refund schemes, which registered producers in return for an additional year, so that
has been extended to 2013.

The political side of the fishing industry in Mauritius

The exclusive economic zone of Mauritius has a reasonable inventory of different
fish, including species of surface and bottom. Fishery resources utilized include artisanal
fisheries based on the island (Lagoon and out of the lake), the thickness of devices archiving
(heresies) Fish (outside the lake), and fisheries benthic marine banks of the plateau
Mascarene and Chagos Archipelago, tuna fisheries in the western Indian

Policy

Depends on the policy of sustainable development and management of fisheries. Main

objectives are:

(A) revenues are increasing;

(B) maintain employment;

(C) increasing domestic and foreign investment, and

An important aspect of the strategy is to unite the seafood hub, in order to attract
investors and create more employment opportunities in this sector, with a focus on value-
added fisheries and related sectors seafood.

For the sustainable development of the seafood hub, was the conclusion of the
Fisheries Partnership Agreement and Protocol and initialed by both the European

106
Commission and Mauritius in February 2012. The European Union (EU) is currently
completing its internal procedures for the Protocol to enter into force. The final wording of
the internal procedures of the European Union normally takes about one year to complete.

Seafood Hub

Seafood Hub Mauritius is an initiative of the private sector joint public policy work. It
provides a single-window service in the Trade and Marketing Center (TMC) in the free port
area to facilitate administrative procedures for loading / unloading / export of fish and fish
products. Access to the entire value chain of seafood hub Mauritius include fishing,
transshipment, warehousing, storage and processing of light (sorting, grading, cleaning,
filleting loinning), canning, and ancillary services (ship chandelling, bunkering, raising the
ship, the agency ships and shipbuilding and repair)

The unit is based on Port State Control (PSCU) in a single window that facilitates services
provide a way for operators and includes:

- Ministry of Fisheries;

- The competent authority - seafood;

- Customs Authority;

- The passport and immigration.

The main activities of the PSCU are: issuing a license to the port of destination, check
the documentation on board vessels landing fish inspection of foreign ships and local
communities; permit for ships / boats to leave the port for fishing expeditions; issuing permits
landing of fish and imported fish products; issuing export authorizations.

Economic and social Aspect of the fisheries sector Mauritius

1. Background

Fish is an important source of protein in the diet of the population and per capita fish
consumption of 20 kg. The fisheries sector accounts for 1% of GDP and employs about

107
twelve thousand people.Mauritius has a delicate task to maintain a balance between the
development of fisheries and conservation of fishery resources at sustainable levels while
taking into account the interest of the fishing community and stakeholders in the fishing
industry.Fisheries from Mauritius include any traditional fishing operations, bank fishing, and
fishing chilled fish and fish sword fish, tuna fisheries and deep-sea demersal fish.

2. Policies and strategies

The main objective of the policy of the fisheries sector is to maximize the benefit to
the economy of Mauritius sustainable through the harvesting, processing, sale and
consumption of wild fish and shellfish and intellectuals.Indian Ocean remains important
production area, which contribute about 23% of the world's tuna production. Of this is
produced 962.000 tons in the western Indian Ocean. Mauritius site in this part of the ocean
makes it an attractive place for value addition tuna and tuna caught in this part of the ocean
and also from other sources.

Mauritius fishing agreement European Union

The agreement was signed in fishing beginning in November 1990 between the
European Union and Mauritius. Since then, there have been five protocols under the
agreement. It is scheduled to begin in the third week of June 2007 in Brussels to negotiate a
fisheries partnership agreement.

Financial compensation

In addition to the increase in the license fee payable for each fishing vessel EU undertakes to
make financial provisions as follows:

(I) pay an annual sum of 292,500 € for financial compensation represents a basic annual
fishing than 6500 tons of tuna with 75 € for any additional tonne caught;

Fishing agreement with the Union Cooperative Society of Japan Tuna Fisheries

108
The agreement was signed with the European Union fishing for tuna fisheries Japan
Cooperative Societies May 2010 to allow the ships to Japanese tuna longline fishing in the
waters of Mauritius has been renewed on an annual basis.

The economic contribution of the fisheries sector

And called the fisheries sector through the development of Mauritius axis of seafood and
aquaculture can play a key role in economic development. Fish processing industry
contributes about 7 billion rupees for the processing capacity of 100,000 tons and 770 calls of
fishing vessels in the ports sector to generate about 5 billion rupees for the economy. Local
fisheries production of about 700 million rupees. Exports of fish and fish products in 2011 to
80,000 tons, some valued at about 6 billion rupees. Fisheries sector generates revenues to the
tune of 40 million rupees annually through the issuance of foreign fishing licenses and is
positive and reached 581 million rupees in 2005 and this will be reflected the same trend for
the year 2011.

Mauritius trade

Mauritius imports of fish and fishery products different for domestic consumption, as well as
a large amount of frozen tuna for processing by canning. The bulk of the exports of fish and
fish products are canned tuna with a small amount of fresh fish. The value of exports in
general tend to achieve a balance between imports. Per capita consumption of fish in 2011
was 20 kg.

Fish trade

IMPORT 2009 2010 2011

Quantity (MT) 62,323 80,943 104,830
Value (Rs M) 2,560.1 3,170.1 4,261.2
EXPORT
Quantity (MT) 48,719 54,242 67,249
Value (Rs M) 3,178.4 3,358.1 4,842.1
SURPLUS (Rs M) +618.3 +188.0 +580.9
Conclusions

109
Given the challenges faced by U.S. ESA in the negotiation processes within the framework of
the World Trade Organization and the Environmental Protection Agency as it relates to
fisheries, and with the support of the European Commission is strongly recommended at the
multilateral level to negotiate related ulcers preference under the NAMA (a selection clause
is agreed), edit ROO The new fisheries subsidies disciplines under the Agreement on
Subsidies and Countervailing Measures.

Technological environment.

At the beginning of this century, ICES was concerned about fishing technology especially the
increasing use of trawls and the proportion of undersized fish in the catch. In 1904, the 2nd
volume of the “Rapports et Process Verbaux” includes an article titled ‘Draft program for
experiments with nets (trawls) By request of the Bureau in response to a memorandum on the
subject from Sweden, ICES formed a sub-committee to investigate comparative fishing of
several types of trawls. This sub-committee later evolved into the North Sea Sub-Committee
on Comparative Fishing. In 1954, after an informal meeting at The Hague between scientists
from The Netherlands, Lowestoft, Aberdeen, and Hamburg, a petition was drawn up to
recommend to the Bureau the creation of a full committee to deal with investigations into
fishing gears and fishing methodology.

The evolution of the Working Group on Fishing Technology and Fish Behaviour (WGFTFB)
in ICES closely parallels that of the fishing industry and strong links between science and the
industry have resulted. Prior to its official creation in 1983, the Working Group existed in
many forms throughout the history of ICES, with its work being carried out by a number of
committees, working groups, and study groups. The Working Group has altered the emphasis
of its work over the years as the priorities of the fishing industry, and the scientific and ICES
community have developed. Key topics in the past 50 years included the study of new trawl
designs and methods to increase the fishing power of vessels to catch more fish, the
development of fuel efficient operation during times of high oil prices, and the study of
‘conservative’ gears focusing on increasing the efficiency and selectivity of both mobile and
static fishing gears for finfish.

In the late 1940s and the 1950s, there were major advances in technology of great importance
to both the fishing industry and fishing technology research. Echosounders and netsondes
were developed for use on vessels and fishing gear, underwater photography was pioneered
providing a vital tool for fish behaviour studies, underwater instrumentation for the study of

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the engineering performance of fishing gears was developing, and synthetic materials for
netting became available on the market.

1961-1970

Under the guidance of the Comparative Fishing Committee, several short-term working
groups were set up during the decade to deal with specific issues such as mesh selection in
commercial gears, selectivity analysis, effect of fishing vessel characteristics on effort
measurements, and fishing gear and fish behaviour

In the 1960s, synthetic netting yarns had almost completely replaced the yarns made of
natural fibers for the construction of fishing nets.

In the early 1960s the Technical Committee ISO/TC 38 “Textiles” of the International
Organization for Standardization (ISO) started drafting standards on fishing nets. Gear
specialists initiated and collaborated in drafting standards on definitions, numbering systems,
cutting rates, methods for testing of netting materials, drawings of fishing nets etc (von
Brandt, 1963).

The first applications in fishing gears were tested in shrimp beam trawls and later in

trawls for catching flatfish (particularly sole). Testing and redesigning of the electrical
equipment followed throughout the decade and into the next, right up to 1988. Electrical
stimulation was successful and it was widely anticipated that it would be introduced into
commercial practice, but it never happened (van Marlen et al., 1997). Ironically, the general
outcry to diminish the impact of fishing gears on benthic substrate and benthos refocused
interest in electrical stimulation in 1995, and new experiments started in The Netherlands and
Belgium.

Beam Trawls and Seine Nets was created in 1995 to detail progress and methodology (Anon,
1996).

Immediately after capture, several chemical and biological changes take place in dead fish
which can ultimately lead to rejection for human consumption because of the spoilage. Fish
post-harvest losses are beneficial especially in developing the countries. Estimated at 10 to 12
million tones they account for around 10 percent of the global capture and cultured fish. That
is why understanding the post-harvest changes that occur in fish is very important in

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developing appropriate measures to reduce losses and preserve the quality and safety of the
finished products.

Legal Environment

Legal Framework

The Fisheries and Marine Resources Act 1998 (FMRA) provides the necessary legal
framework for fisheries and marine living resources management. It makes the provision for
registration of fishers; collection of fisheries information; setting up of marine protected areas
(fishing reserves and marine parks and reserves) and fish farming; prohibition of fishing by
the use of poisonous substances, explosives or spears closed periods for net fishing and
fishing of oysters; prohibition of fishing of undersized fish, crabs and lobsters in the berried
state, turtles and marine mammals, it prohibitthe sale of toxic fish and fish products unfit for
human consumption; import of fish and fish products; import of fishing vessels; and licensing
of nets and the fishing implementation.

AID

FAO/UNDP successfully implemented an FAD development fishery project in 1980s. A

survey for the assessment of the deepwater shrimp stocks in the waters of Mauritius was
carried out with the assistance of FAO/UNDP in 1990. FAO is currently assisting to fisheries
through a two-year project for stock assessment of the St Brandon fishery.

The Contributes to the fisheries sector 1% of GDP (GDP), and plays a key role in terms of
jobs and other activities associated with them. The total investment in the axis of seafood as
in December 2005 to Rs. Two billion. Contribution axis of seafood along with the possibility
of maximizing the use of aquaculture development and expected outcomes of the land based
will undoubtedly give perimeter activities of fisheries and weight is important in the
contribution of the national wealth of the country in the near future. Mauritius is to encourage
the development model focused on human resources, information technology and seafood,
with a focus on activities add higher value.

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Porter five forces analysis of fishing industry in Mauritius:
Porter analysis of five forces is a framework for industry analysis and the
development of business strategy. It draws upon Industrial Organization (IO) economics to
derive five forces that determine the intensity of competition, and hence the attractiveness
of the market . attractive in this context refers to the profitability of industry in
general. industry "unattractive" is one in which a combination of these five forces helps to
reduce the overall profitability. Such is very attractive industry to be one approaching "pure
competition", which are driven by profits available to all companies on normal profit .

The potential of the exclusive economic zone and wide (EEZ) of 1.9 million
square kilometres and is unexplored until now, because it is basically the lakes and the banks
that are to meet the demand of Mauritius and the numbers the growing of tourists who visit
the exploited for the fish, while imports Mauritius currently 13,000 tons of fish and fish
products annually island.

1. The bargaining power of suppliers in the fishing industry of

the country of Mauritius :

 We offer entertainment for tourist : Here in Mauritius fishing they offer some of the
finest big game fishing, tuna, marlin and east, to both novices and fisherman
experienced alike. Our travels today are two of the largest and most successful boat big
game, "Tora Bora 2" and " Tora Tora 3, "which is based in Le Morne Anglers Club in
the south-west of the island.
 Strong monopoly for the supply of blue marlin fish seller : Size blue marlin
enormous and the ability fighting legendary makes it one of the most gamefish highly
targeted in world.These giants are real top of the food chain. capture the largest blue
marlin in the weight Mauritius £ 1430. every size fish trophy are female, and the male
does not exceed 300 lbs. believe harpoon to live up to 15 years.
 The use of expensive equipment in the fishing industry: Includes fishing assets 2.525
wooden fridge and fiberglass boats in 6-7 meters. Motorized and also about 85% of the fleet
while sailing another use. Actual cost of the Rwandan Patriotic Front 7 meters long boat almost

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 RS 2,00,000-2,50, the 000. , Boats equipped big game with first-class international
Pennsylvania big game rods and reels.
 Mauritius is one of the best fishing destination : In Mauritius there are many
companies that have established their business in providing entertainment and tuna.
There are many tourists come to Mauritius because mauratius is one of the best fishing
destination. And is given the name of the company is as under. For eg.. No significant
Bruges Game Fishing Mauritius, ROYAL BIG Game Fishing:

The bargaining power of the processor is very high because the demand of the fish
is very high in the local market, as well as tourism demand for the purpose of entertainment
activity. So, on the basis of market condition of Mauritius we can say that the bargaining
power of the suppliers in fishing industry is very high.

2. The Competition between the fishing industry of the country

Mauritius :

 Preferential access to the markets: As a signatory to the Cotonou Agreement,

allows Mauritius to enter the EU market duty-free and quota by meeting the standards
and rules of origin are required.
 The impact of tariff reduction : Will be a significant reduction in tariff
consequent demise of canning tuna in Mauritius and the death blow to the
diversification of economic activity in Mauritius. Decline in the current tariff
level from 24% to 18% -20% may be acceptable, provided that the transitional
period is long enough, at least not less than for 15 years
 The Economic and social development in tuna industry : It should be noted that
canneries competing in development countries low they have assets fully depreciated,
and fish is the cheapest supplies throughout the year, factories produce larger and
more efficient. On top of all these factors, the labor cost less in the producers giants
like Thailand than it was in Mauritius ,
 Luxury facility with a new innovation in the boat: Aboard luxury boats, and is
fully equipped with gear on a global level, and the crew will from our experts take

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 you to the best sites where waiting for treasures in the deep sea. Enjoy the freedom of
sailing across the water cobalt blue of the Indian Ocean, ready for a lifetime of big
game experience in the field fishing in Mauritius.
 Does not control on prices of fish: There is no control on the prices of fresh fish
in mauratius, and decided to prices based on market forces like..Consumer
preference and taste , Seasonal fluctuations , Effective demand from the buyer for
companies such as restaurants, restaurants, and hotels.

The competition power in between the fish market is very high because the market does not
have any price control so the competitors of the fish industry make very high fluctuation of
the price of the fish. And the development of the economy make the market very competitive
in Mauritius.

3. The threat of an alternative product in the fishing industry

of the country Mauritius:

 The estimated Fisheries is currently providing 16% of the world's population in

the protein . valued the flesh of many fish in the first place as a food source, and there
are many species of edible fish. other marine life taken as food
includes shellfish , crustaceans , sea cucumber , jellyfish Sea and ROE .
 Is also used for fish and marine life other for many other uses: pearls and mother-of-
pearl , shark and Rayskin of . horses sea , fish star , sea urchins and sea cucumbers are
used in traditional Chinese medicine . purple is a pigment made from marine snails,
and Sepia is a dye made from secretions Habre of cuttlefish . glue fish has long been
valued for use in all types of products. isinglass is used
to clarify the wine and beer . emulsion fish is a fertilizer emulsion that is produced
from the remaining fluid from processed fish for fish oil and fish meal.
In this industry in the long seafood products are often used instead of fish products.
 Seafood , like ..
Crustaceans , raw fish , shellfish , seaweed , other Seafoods

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 The threat of the substitute market of the fish industry is very low because the
substitute product of the fish market is only the sea product but the most of the development
is only in the fishery industry. So because of the less development of the other sea product
market the threat of the alternative product in the fishing industry is very low.

4. The threat of new entry in the fishing industry of the

country Mauritius:

 Strong distribution network required : : distribution networks means weak goods

are more expensive to transport some goods do not get the final consumer. Expense of
building a strong distribution network positively affects the fishing industry in
Mauritius
 Industry requires economies of scale : Economy producers instructions scale to
reduce costs through production and the next unit of output at a lower cost when new
competitors enter the market, they will have a high cost of production, because they
have small. And economies of scale
 Geographical factors limit the competition : : If existing competitors have the best
geographic locations, and will new competitors have a competitive disadvantage.
Reduction of geographical factors affect positively on the fishing industry in
Mauritius.
 High capital requirements : The capital is the most important part is required in the
work requirements of high capital means that the company must spend a lot of money
in order to compete in the market high capital requirements positively affect the
fishing industry in Mauritius
 Barriers to entry are high : When high barriers, it is more difficult for new
competitors to enter the market barriers to entry fishing industry high positively affect
the profits of Mauritius barriers entering high and more profits in the business, and
thus Vanhisab
 Advanced technologies required : advanced technologies make it difficult for new
competitors to enter the market because they have to develop these technologies
before competing effectively the requirements of advanced technologies positively
affects the fishing industry in Mauritius.

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  Investment Opportunities

The threat on the new entry in the fishery industry market is very law
because in the fishery industry the company require the huge amount of investment
and there are many barriers in the market the new entrance have to face.

5. Bargaining buyer power in the fishing industry of the country

mauratius:

Use Fish In Products Different :

There Many From Companies Who Use Fish As Ore For

their products. Therefore This Glides Have Ability On Bargaining With Supplier To
be used In Their products.

Like ..

 Products Health With Link Care

 Cosmetics

 High Purity Salt Sea

Fisheries (Alosma) subsidies as

Exempt from subsidies disciplines, namely:

(A) Any development assistance to developing coastal States;

(C) access fees in access agreements fishries;

(D) financial incentives - to facilitate the development of small capacity of weak

The Buyers in the fishing industry are the people who mainly deals with
the fish., As is the use of fish for many purposes, such as oil extraction, for the
manufacture of pharmaceutical and health care products, etc.. Buyers are in
large numbers and are therefore fish is limited so there is a strong bargaining

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 less left with buyers and suppliers also limited to this extent. Suppliers are
fishermen, so they will have the powers high on buyers.

SWOT ANALYSIS OF FISHERY INDUSTRY IN MAURITIUS

SWOT analysis is structured planning method used to evaluate

the strengths, weaknesses, opportunities, and threats engaged in a project or in
a business venture. Each and every word has their own meaning. A SWOT analysis can be
carried out for a person, product, place or industry. Fishery industries in Mauritius have their
own strength and weakness. A fishery industry is very well developed in the Mauritius
because they have a huge area of sea around them.

Everyone knows that there is no any downfall in this business but a competition with
the other nation can decrease the sales or revenue of fishery industry. Here we see that whole
SWOT analysis with their solutions so new investors can gather the information regarding
this.

STRENGTH

In this act they mentioned a “Mauritian fishing boat”. These boats are enrolled under
sec44. So some illegal fisherman can’t enter in the business of fishery. According to this act
no person can import into Mauritius any fish, or fish product, except with a permit issued by
the Permanent Secretary. So with this rule we can easily sell our product in the local market
and for that we don’t have to face any global competition.No person shall export from
Mauritius any fish or fish product except with a permit issued by the Permanent Secretary.
But in most of the cases a mauritius government give the permission to the industrialist.

Support private sector growth at all stages of the value chain, involving fish
production and in supporting industries. Ensure safe, adequate, good quality seafood for
domestic consumption. Decrease the medium to long term risk exposure of Mauritius’s
seafood export sector. Transition to a more of taking part, co-management approach to
fisheries management and development that involves all key stakeholders and recognizes the

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private sector benefits that accrue from exploitation of Mauritian fisheries resources in
funding services to support management.

A monitoring programs means to redevelop new rules and regulation in the fishery
business. Maintenance of demarcation buoys in the Blue Bay Marine (BBMP).Regulate
permissible activities through the issue of permits for the BBMP and interference permits for
the other Marine Protected Areas. Production of live feed (phyto/zooplankton);
Acclimatization of berri rouge fingerlings to seawater; Provision of extension service and
dissemination of information on best practices for aquaculture .

In the mauritius they provide a number of new methods of equipment for the
improvement of fishery industry. They use specific criteria for evaluating the fish products.
For hygenic food they have an HACCP. It has increasingly been incorporated in the
aquaculture legislation of many importing countries of aquaculture products.

important development is that, from January 2002, labelling for origin and species has
become mandatory in the EU for fishery and aquaculture products offered for retail sale to
final consumers (Regulations Nos. 104/2000 and 2065/2001).To encourage use of effective
and efficient fishing techniques.To promote production and supply of safe and quality sea
food.To educate fishermen to develop a safety at sea culture.To create awareness on the
protection and conservation of the marine environment, and to foster the ecosystem approach
to fisheries.

WEAKNESS

 No recent review of monitoring programs

 No Fishery Management Plans exist, setting their research priorities
 No comprehensive feasibility studies exist for marine aquaculture, providing guidance
on priorities and research
 No real market research for identifying possible regional and international
requirements that could present opportunities
 Aquaculture equipment is outdated in some instances
 No research on a number of key aspects e.g. by catch, mammals and seabirds,
recreational fisheries

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  No clear plan or business plan on laboratories (and new equipment) and positioning
(e.g. in relation with exporting)

OPPORTUNITY

 Technical
 Review of monitoring activities
 Drafting of Fisheries Plans and Aquaculture Feasibility Reports – in
conjunction with SWIOFP, IOC and others
 Human Resources
Upgrading the qualification of staff:

THREATS

 Staff placed in positions without the necessary qualifications or experience

 No technical assistance for the Director of Fisheries – overseeing development of
FMP’S, Aquaculture feasibility studies, setting of priorities
 No MOU developed between the role players, overlap of research and responsibilities

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AGRICULTURAL
INDUSTRY

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An overview of Mauritian agriculture industry:

In Mauritius about 40 per cent of the island's surface is being used for cultivation and
out of which almost 90 per cent is sugar cane, the rest is tea, tobacco and food crops. Sugar
cane cultivation was the main agricultural activity in Mauritius since many years.

The Ministry of Agro-Industry and Food Security emphasized the need to diversify
the agricultural sector because of falling production levels and the global food price crisis. (In
Mauritius Sugar price was reduced by 36% between year 2005 and 2009 mainly because of
cut in the sugar price of European Union.)

In year 2010 in order to increase the competitiveness of the sugar industry The
European Union earmarked €13 million. Agriculture industry in Mauritius has been improved
with the increased mechanization, better management; improved yields and the production of
energy from biogases (fibrous cane residue). The country produced 430,000 tones of sugar,
with a growth of 0.6 % compared to 2010 in year 2011. In export market different types of
sugars are also being produced for the export market.

Strength

 As agricultural occupies more than half of the land area, a large number of people are
employed in agricultural and agricultural related jobs.
 In Mauritius the quality of the seed is long lasting. As the storage facility provided
there is effective.
 In Mauritius it is a policy of the government to grant agricultural leases to companies,
individuals, and to cooperative societies.
 Leases may be for cane planting, flowers, food crops, fruits trees, and for the
development of the livestock.
 Development of the hydroponic system in which new methods are developed for
doing irrigation without soil which help in good productivity.
 Government of Mauritius is providing different loan schemes for the different purpose
of the agricultural sectors.
 In Mauritius the total area of land is 194.494 hectares, out of which half of the area
about 110,796 hectares are use for the agricultural purpose.

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  The molasses block technology which is use more in livestock and also in other
sectors of the agricultural. As it is more costly the use of this technology is limited.
 In tobacco industry the distribution network is strong and in each and every place.
Variety of brands are there. Most of the companies in tobacco industry are financially
sound. Tobacco industry is most developed as tobacco is addictive in nature.
 In Mauritius the fishing industry is more developed as they have great entrepreneur
strength and unique skills in the chain of distribution. They also have the international
service companies.

Weakness

 Production is effected by the frequents and severs drought as well as cyclones and
heavy rainfall. Costal land is effected by the more frequent storm surge destroying
crop and soil quality and productivity.
 Scarcity of water well effect irrigation schemes especially in northern and western
area. Soil erosion is take place in sloping area due to heavy rainfall.
 The main disadvantage in this type of cultivation is that the initial cost is very high
and the profit is made after two year.
 Due to lack of the production of the agricultural product Mauritius has to import many
product of agricultural form other country.
 In Mauritius the population of cattle is decreased remarkably in last 3 year. Low
quality of feed give low productivity in milk and higher disease.
 Entering in the fishing industry is very difficult as heavy capital is required.
 Lack of water, land and new technologies. Supply of product is insufficient and
increases in the cost of the product.
 Absent of in sustainability in the policy of the government, problem arising from the
legal framework and the failure to legislate.

Opportunities:

 Seed production units

 Food crops production:

 Processing of Vegetables and Fruits:

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  Bio – farming

 Intensive dairy farming

 Technology based farming

 Expanding in the region

 Rice in global food price

 Hi – Tech dairy farm

 Development of agribusiness sector

 Fruits, flowers & food products export

Threats
 Conversion to non-agricultural use

 Change in economic sector

 Constraints in growth of agriculture

 White or Brown sugar

 Reduction in production of sugarcane and its product

PESTLE ANALYSIS OF THE AGRICULTURAL INDUSTRY

Contributing towards Food Adequacy

 The agricultural sector represents 4% of the national economy.

 In 2010,194 local companies operating in this sector, providing for 8% of the
country’s total employment.
 Sugar cane cultivation & sugar production remain the main activities in this sector.
 There is around 67,000 hectares under agriculture, out of which 58,000 hectares are
dedicate to sugar cane cultivation.

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  Up to 75% of the country’s food needs are import, with a net food import bill of more
than USD $ 860 million.
 Agriculture is one of the main economic activities of Mauritius. Its importance
explained by the following facts:

(i) More than half of the land area occupies for Agriculture

(ii) Agriculture produces food & raw materials.

(iii) A large number of people are employed in agriculture & agriculture-relatedjob.

(iv) Manyof the agricultural goods are produced for export.

(v) The net foreign exchange earning from the export of agriculture goods are more
than those of any other exported goods.

 The rising cost of sugar production has necessitated a restructuring of the industry,
with a focus on increased mechanisation, better yield, improved management and
energy production from bagasse.
 There is also been a development of special sugars and tea for the export market.
 Number of factor constrain development of the agriculture sector, including a narrow
domestic market, land scarcity and high production costs.

Major Crops

 Sugarcane, Tea, Potatoes, Corn, Banana, Pulses, Cattle, Goat, Fish.

 Contribution:
4.6%ofGDP
9% of the total Labor force.

Agriculture racing toward food security

 In fact, the agricultural area harvested in Mauritius has also decreased over the year,
more space being devoted to the booming real estate sector.
 Between 2009 and 2010, there has been a 3% decline in total harvested crop area,
with a corresponding 6% fall in local food production.

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  The contribution of agriculture to GDP hovered around 4% in the last three years
compared to 6.9% in 2001. Furthermore, employment in the agricultural sector
stagnated at 46,200 in 2008 & in 2009.

Growth rates

 According to FAO, in recent years, growth rates of world agricultural production and
crop yields have slowed down.
 This has raised fearfor the world may not be able to grow enough food and other
commodities to ensure that future populations are adequately fed.

Price hike

 All these factors affect the price of fruits and vegetables in Mauritius in one way or
another.
 Customer choice around the world may be driven by taste & preference.
 But today in Mauritius, there is only one factor which is affecting consumers most, &
that is price. Mauritius is already facing an alarming situation.

Food security fund

 The Government earmarked Rs 1 billion annually for the Food Security Fund.
 Different schemes by the Ministry of Agro Industry have yielded positive result,
so,encouraging the ministry to carry on with its strategy.
 This is a testimony of the high importance that Government is giving to the agro-
industry in Mauritius.
 On the regional, Mauritius has access to more than 120,000 hectares of farming land
in Mozambique.

Environment Proctection

 Agriculture represents the most efficient vectors for the protection and safeguard of
the environment in Mauritius, the more so that the country, due to its insularity, has a
fragile environment, which needs to be preserved at all costs.

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  For instance agriculture in Mauritius, it contributes to significant extent to the
preservation and embellishment of the physical environment.

INFORMATION TECHNOLOGY

 97% of all extension officers involved with sugarcane and other crops and livestock, a
broad range of information (on crop and animal husbandry practices, new
technologies developed locally, market, individual farmer profiles) can be stored in a
computer and updated when necessary.
 IT can provide information required for decision-making and planning locally
improve the information flow within the agricultural community; information
required for their work with increased efficiency of the agricultural extension.
 Extension officers generally possess basic skills required to use a computer and are
need to make use of IT in their work.
 Moreover, the introduction of IT in extension will largely depend on the commitments
of the institutions involved to provide further training and the primary infrastructure
The most of the information required by extension officers, and basically farmers,
could be made available with help of IT.
 The information ranges from information on crop and animal husbandry, such as new
technology developed, to market information.
 However, IT can provide information for decision-making all at the farm level as well
as at the policy formulation level.
 Most of the information required for the formation of an information system is
already available but is not currently in a structured electronic form that can easily be
accessed.
 As example, information such as market information is not currently accessible but
the creation of a database with the collaboration of farmers, providing proper
information regularly could provide information on the demand and supply of crops.
 Moreover, information carried out locally and new technology can be updated and
disseminated speedily when available on a computer.
 Information technology offers the advantage of providing proper information needed
by extension officers eventually, increasing the efficiency of the extension services.
Although IT applications will help extension officers and farmers make better
decisions.

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  IT also offer the ability to link up the information held up at various agricultural
institutions so that a wide range of information is available at any time. The use of
information technology in extension can also, in the future, lead to the development of
expert systems and decision support systems in the form of similar models.

THE MOLASSES BLOCK TECHNOLOGY

 Classifying molasses for use in livestock feeding has been used from a long time.
However the process was depending on heating and dehydration; as it was costly, the
use of molasses blocks was limited.

FUTURE DEVELOPMENT POSSIBLE AND CONCLUSION

 A project subsidizer considers a number of factors in order to determine the pleasant

appearance of a project. These include engineering viability, financial and economic
capability, environmental and socio-economic effects, legal and institutional
constraints and political suitability.
 The MB technology has made substantial progress in the African continent over the
past few years. Moreover, a number of troubles will have to be tackle and solve, if the
technology is to be adopted on a sustained basis.
 The technology can be examined as a suitable technology along the lines distinct, but
it is not a trouble-free case of technology transfer as indicated by the difficulty of the
problems being faced. The technology needs alteration and project management will
have to fairly consider planning, execution and control functions so that the
management loop is efficient.

MAURITIUS SOCIETY AND AGRICULTURE

Social Stratification

 The Franco-Mauritians have had land and rights to privileges that the other cultural
groups have not, and they form a small, advantaged high class. The Chinese and
Indians form subgroups in relation to language, religious branches, and regional birth.
Hindi is considered more prestigious among the Indian population, but northern

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 Indian dialects are more usually used in the landscape. The creoles have had the
poorest economic situation of any group.

Sugar

 Sugarcane covers 45% of the total area of Mauritius and more than 90% of the
cultivated land. Nineteen (19) large estates account for about 55% of the 76,000
hectares planted in cane and range in size from about 730 hectares to 5,500 hectares.
Mauritian firms own fifteen (1/5th) of these plantations.
Livestock
 Although self-reliant in poultry and red meat, Mauritius had to import 80% of its
dairy products and 90% of its beef.
Fishing
 The total catch cost to 13,985 tons that includes fish trapped by foreign vessels for the
tuna canning industry.
Other Crops
 Mauritius produces sufficient fresh vegetables and potatoes to meet household
demand. The government subsidizes the production of a few crops. British American
Tobacco process the entire crop for household consumption.

Political and legal

 Historically, sugar cane crop growing has been the main agricultural activity in
Mauritius. As the period of guaranteed price and quota free entrance for Mauritian
produced sugar on the EU market comes to an end, the usual sugar industry has now
transformed itself into a sugar cane cluster producing a number of types of sugar as
well as electricity from bagasse and ethanol.
 Development of the agribusiness sector is very high on the schedule of the BOI. It
plans to attract further foreign investment in areas such as major hydroponic farming;
animal feed production, farm animals breeding and high value additional food
processing for export.
 Sustainable agriculture technology is a name and practice which is in advance a lot of
energy these days. But for many of us, it is not well-understood what it is about.

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 Diverse persons in dissimilar regions have their own classification of sustainable
agriculture.
 Agriculture today faces the problems of sustainable productivity and improved food
security on a decrease area of land under cultivation.
 Until in recent times, biotechnology has been view as costly technology reasonable
only by rich industrial countries. However, it is now more and more considered as an
essential tool for developing countries to tackle the many problems of
underdevelopment.
 The paper outline the current status of biotechnology in Mauritius, some main
constraints faced, as well as how policy maker are planning to create Mauritius
“assume the role of a service supplier and know-how disseminator in the field of
biotechnology by acting as a regional hub and a regional nursery”.
 Mauritius has been using established biotechnology such as the production of beer,
alcohol and vinegar for several years.
 However, biotechnology was introduce in our agriculture in 1985 with the set up of
the first tissue society laboratory at the MSIRI for the growth of potato and eventually
of sugarcane and it became completely equipped in 1993 .
 The application of biotechnology to crop reproduction has provided breeders with
extra tools to increase the efficiency of selection processes so as to reduce the time
mandatory to produce new plant varieties.
 The use of molecular techniques has enlarged the range of collection criteria, which
are no longer reliant on environmental factors and phenotypic appearance. Hence,
screening can take position early in the selection process, sinking the costs of
breeding new varieties.
 Treatment use of agricultural waste Waste treatment has turn out to be one of the most
significant areas of application of biotechnology today in view of the ever-increasing
pollution from a increasing world population dependent on an ever larger number of
industries.
 The biotechnological dealing of waste relies on the utilization of the vast assortment
of microorganisms and their versatile catabolic process to disgrace or transform
wastes either into useful biomass or into compounds less harmful to the environment.
 Two pilot projects are being run, 1 at the St Martin pig farm and the second at Union
Sugar Estate with the purpose of integrating the control of effluence into the farming

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 system. The treatment involves the preliminary anaerobic fermentation of natural
wastes in a digester, which produce biogas while sinking the biological oxygen
demand (BOD).
 Mauritius has been extraordinarily victorious in achieving rapid growth and
considerable diversification of a previously mono-agricultural economy.
 The government wants to support the SMBs, diversify them by adding up value and
propelled by innovation, science and technology.

 In adding to an inventive move toward for the promotion of direct foreign investments
(FDI) in order to accelerate the diversification of the Mauritian industrial base, the
government aims that at the promotion of exports by increasing faster links and pacts
with importers, the exploitation of niche markets and regional markets.
 The government focus is to encourage industrial operators to adopt clean and more
efficient technologies and sustainable industrial development so as to satisfy the
customers in relation to ecological products.

 In addition to encouraging the reorganization and reconstruction of the sugar and

textile sectors, the government is putting much importance on the development of the
Information and Communication Technologies(ICT sector) and the encouragement of
Mauritius as a seafood hub in the county, using accessible logistics and distribution
facilities at the Freeport (free trade zone at the port and airport).

FIVE FORCES MODEL TO ANALYSIS AGRICULTURAL INDUSTRY

Rivalry among existing players

Mauritius agricultural business has mainly 3 sectors

1- Sugarcane
2- Tea
3- Fishery

They always try to improve their competitive strength and up gradation in business

They always try to be flexible and responsive for the consumer demand.

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Agriculture industry also goes with the following programs to sustain in the market

The commodity development programme:

 Promising crops & sustainable agriculture products.

 strategic crops for food production & nutritional security;
 vegetable for high self-sufficiency;
 agro-processing &
 fruits
Action PLAN

 Strategies to enhance the role of agriculture and in particular the non-sugarcane sector
in the economy.
 Try to rise standard of living of the people &increasing demand for good quality &
safefood products.
 Focus on self-sufficiency in a number of selected agricultural products.
 Develop a modern agro sector in Mauritian economy.
 Providing more opportunities to young skilled generation to establish agro industries.
 Improve competitive advantage.
 Export better quality & diversified products.
Policy
 To give a boost to the industry
 Identify potential land or region for establishment of orchards;
 Introduce and evaluate new varieties;
 Consider the introduction of dwarf varieties;

Substitute Products and Services

 From the last decades the production of the sugarcane, tea and fishing are declining
 Livestock production is being undertaken mostly by some 4500 small breeders and
around 100-110 medium to large producers including the poultry sector.
 Only domestic market Production is equivalent to an average of 46,000 tons yearly

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So in past decades there are no of substitute products comes against sugar and fishery sector
to improve the agro business.

There are some of main substitute products

 Potato

 Onion

 Pulses

 MaizeOthers are Chillies, Crucifers (Cauliflower, Cabbage & Broccoli), Litchi,

Banana, & Pineapple

Why substitute products gaining more and more market

 Failure to adopt new technologies to give a new impetus to the sector and to keep up
with market exigencies
 Limited fertile land resources;
 Unavailability and high cost of quality planting material;
 High labour cost & high prices of chemicals including commonly used fertilisers;
 Insufficient planning of production as per market demand;

Threats from the new entries

There are the following objects why govt. encouraging new players in agro business

 To protect the country’s agro business & eco-system

 To provide suitable Trans boundary surveillance services to importers and exporters
of agro products.
 To maintain and improve plant health through modern technologies;

The new players focusing on following activities

 The new players always try to Introduce, develop & testing of new varieties of
products
 Increase Productivity and quality

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  Post-harvest management & processing technique
 Maximum utilisation of resources

The main reasons why new players focus on fruit production

 Only few items in Fruit production is there, mainly banana, litchis, pineapple and
mango.
 Increase in demand of higher standard of living of the population;
 Increasing health awareness

Technology they use:

Hydroponics technology, optimal fertiliser usage, disease and weed control, seed
treatment, soil fertility management, drought management, improvement of use of
agricultural residues for crop production, organic crop production and post-harvest
technology.
The following Research & Development they adopt
 Identifying new fruit crops & varieties for the local & foreign market;
 Evaluating and accepting new technology;
 Better quality fruit production for export;

Bargaining power of supplier

In Mauritius Agriculture, clothing and textile, tourism, and financial services these
four industries are continue to be the four pillars of the economy of Mauritius. Contribution
of these main four industries continues to change in economy of Mauritius.

Agriculture continues to be an important sector in terms of its share in exports and on

account of its linkages with other sectors. However decreasing sugar prices in main export
market of Mauritius, a new plan has been adopted by Mauritian government to restructure the
sector of agriculture plus ensure its long-term viability.

 Demand in export market for its quality fruits:

 The local requirement of flowers

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  Livestock production

 International trade/food import level

 Import of fruit species

 Organic Agriculture

Barging power of buyers in agricultural industry

Porter states that the barging power of buyer is more power when:

 When buyers are more and the seller are less

 When the buyers have full information of all the product in the market
 Learns low profit
 When the product are standard or undifferentiated and face very less switching cost.
 When the industry product is un important to the quality of the buyers products or
services.
 When the buyers pose a credible threat of backward integration

Reducing the bargaining power of buyers

 The supplier can reduce the bargaining power of their customer by increasing their
loyalty to your business by adding the features, branding to your product, by direct
selling to consumers, by increasing the inherent or perceived value of a product. In
addition to that if you can select the customers who have the little knowledge of the
market and have less power than you can enhance your profitability.

AGRICULTURE INDUSTRY AND ITS COMPETITORS

 The Mauritius has its own traditionally and a primarily agricultural economic system,
that has dominated by the mono-crop sugarcane up until the 1970.
 Also the country has experienced a growth of the other sectors also, alongside a
diversification was there in the agriculture industry.

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 And also the sugar cane retains its position as the most significant agricultural export,
and also covering about almost 90% of the cultivated land area in the year 2010.
 In the year 2010 the exports of raw sugar was been generated to $218,550,000 and its
refined sugar generated to $33,090,000.
 Then the agriculture has seen a decline in its contribution to the national economy, as
with agriculture, forestry and in the fisheries contributing the 4% to the GDP in the
year 2010.
 In the year 2009 the agricultural land accounted for 48.3% of total land area.
 Also the country has seen increase in the production of flowers and fruits.
 Exports of the mangoes, pineapples, also the lichis and the bananas are sent to the
European Union.
 High freight costs have also pushed entrepreneurs towards increasing the proportion
of processed fruits and vegetables for export.

EMPLOYMENT IN THE AGRICULTURE SECTOR

 In the year 2005, there were 42,290 persons employed in the agricultural sector with
about the 18,600 in the sugarcane industry.
 And the rest are employed in other agricultural activities.

THE CROP SECTOR

POTATO PRODUCTION
 The challenge of potato production is to meet local demand during off-season. Some
24,000 t yearly is estimated as the current consumption, whereby 11, 000 t of potato
are imported and the rest are produced locally.
 Imports of fresh potato and in processed form (either as chips, powder for mash and
frozen chips) increased by 47 % since 2001 to 2005.

TOMATO
 The tomato industry is estimated at a value of around Rs 300 M with an annual
production of 14,700t over an area of ha 935 and with the market price of Rs 13.00
upto 105.00/ Kg.

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 ONION PRODUCTION
 The onion industry represents an annual value of Rs 126 M.
 The crop is grown over some 300 ha with an average production of about 9,000 The
annual consumption of onion per capita is around 8 – 10 kg.

CARROT
 Around 3 – 4 t of carrots are imported annually in processed forms.
 Currently there is an increasing demand for quality produce and consumers are ready
to buy imported quality carrots at even high prices.

FRUIT PRODUCTION

LITCHI
 The litchi from Mauritius has been fetching the highest price on the European market
every year at the beginning of November amounting to 9 -10 Euro/Kg.
 This was the period when only country Mauritius is exporting litchi to Europe in the
world.

PINEAPPLE
 Since the early 80’s, pineapple has been permanently on the European market inspite
of drought and cyclones.
 The local variety Victoria has earned a good name on the European market where in
the mid 1980’s till now, export volume has increased from 10t to 600t.

BANANA
 The demand for the quality banana is on the upward trend due to an increase in
standards of living, the rapid establishment of supermarkets/hypermarkets and the
expanding tourist industry.
 Presently, around 520 ha of marginal lands are under banana cultivation.

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TEA INDUSTRY

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PESTEL ANALYSIS OF THE TEA INDUSTRY IN
MAURITIUS
PESTEL analysis with key external environmental influences on business.

The acronym stands for the political and economic issues, social, technological, legal and
environmental that could affect the strategic development of the business.

THE POLITICAL DIMENSION OF THE TEA INDUSTRY IN MAURITIUS

To protect the best interests of all stakeholders, and repeated Control Act tea industry
and the replacement of the tea industry control in 1975. Granting Law Council of tea with
power politics undue replace the Control Panel tea.

Agricultural diversification of the tea sector in Mauritius

And continued attempts to progress in the economy of the tea industry failed.
Mauritius can not compete with the major producing countries of tea such as India, Kenya
and Sri Lanka because in those countries, and is produced tea on the rise much higher than
Mauritius.

Agricultural diversification began in the tea sector in February 1996. Was scheduled
project aims to convert some 2,500 hectares (6,000 arpents) of tea in the sugar cane,
originally to be completed in 1999-2000. With the supplementary part of the 85,000 tons of
sugar from the European refiners, to accelerate the diversification program, the government
decided with the help of the five participating sugar estate in the conversion of tea
belts,. program was completed in August diversification 1998-1999.

Modern tea industry

Tea industry has moved into a new phase during the period from 1999-2000, which were
represented in the following:

1. Cover tea Plant the ion has an area of about 761 hectares.

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 2. Only private tea factories in the process. This is the Bois Chery, Corson,
Flora and a new plant does not Chartreuse, which began in January 1999-
2000.

3. Tea is manufactured mainly for domestic use. Imports completed only

where the yield was higher than the cost of providing products in the
market disturbed.

4. The system stops the green guaranteed price. Absence of any

justification for the continued existence of the new phase.

This body quasi-governmental, which gives employment to ten people, and to achieve these
losses year Rs 6.9 million.As those for years to come, with an estimated value they Rs 8.8
million for the year 2014.8300000 Rs 2015 and Rs 8.8million for 2016. To remedy the
situation, the government intends to distract the staff in the Ministry of the agricultural
industry.

From July 2009 to December 2010, the State contribution of Rs 5.25 million
for tuberculosis., But my body no longer receive any government support since 2011.

During the past 20 years, lost in tea exports and the rising cost of energy production.
Additionally, Morris product category tea to the world market regular.

The functions of the Tea board

Tea Board (TB) is the authority to grant permission for the cultivation of tea. Tea Board also
provides control over agriculture, export and import of tea. Which also oversees standards for
picking tea leaves.

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 ECONOMICAL ASPECT OF TEA INDUSTRY IN MAURITIUS

Mauritius Tea

As part of its agricultural diversification hard, government support for the production of
large-scale often in the late 1960's. Second to export sugar, tea enclosed 2,870 hectares in
1990-1991. Tea Development Authority (TDA) owned and operated by three quarters of this
property, which was leased to farmers tenant. despite the fact that tea is fed at high altitudes
on the island. has been delayed production by higher costs, including labor, fluctuations in
the prices of the world.

Some of the key figures of the local tea industry (2002)

Area under tea cultivation 680 hectares

Number of factories in 4
operation
Processed tea production 1,380 tons
The number of people 2,200
employed directly or
indirectly
Average annual Teal Mauritius: 1.1 compared to developed countries (such
consumption per capita as the United Kingdom and Ireland): 2.5 to 3 and to
(kilograms) the Middle East: from 1.5 to 2.

Today, only four tea manufacturers, production of black tea exclusively sell a wide range of
packages and flavors designed under the brands of their own, and to provide entirely in the
domestic market. Are produced about 1,310 tons of tea annually. Are exported quantity
marginal (40 tons per 2002), and value added consists tea (tea bags, luxury boxes).
production records has recorded over the past decade drastic downward trend as a result of a
change in a large area of the public in the tea plantations and other agricultural activities.

Figures

Tea sold
In 2010 1451 tons

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 in2011 1596 tons
Tea production
In 2011 1787 tons
Tea export
In 2010 35 tons
In 2011 38 tons (as export markets are France and Reunion.)
Tea cultivation 700 hectares

The tea is grown mainly in New France, Bois Chery, Grand Bois, Flora, Dubreuil and
Midlands.

THE SOCIAL ASPECT OF THE TEA INDUSTRY IN MAURITIUS

Mauritian economy witnessed significant shifts since independence. Deprived country

with high rates of unemployment, mainly exporting sugar and took their fluctuations in
demand the world, Mauritius has become relatively rich and varied, though not without
problems.

It was in the 1970s marked by the promise of a strong government to diversify the
economy and provide more jobs with high salaries of the population. Promotion of tourism
and the formation of export processing zones done to achieve these goals. Between 197o-71
and 1976-1977, were created about 64,000 jobs .

TECHNOLOGICAL SIDE OF THE TEA INDUSTRY IN MAURITIUS

The tea industry in Mauritius was developed towards the end of the 1800′s, when
Mauritius still was a British colony.

The virtues of tea

It is said by the Emperor really Chen Nungthat-"Tea awakens wisdom Blends and
ideas. It refreshes the body and calms the spirit. If you have been discouraged, and will
restore your strength tea."

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One day of the year 2737 BC, when the Chinese emperor Cheng Neng was resting under a
tree, and some tea leaves, and float on the wind, landed him a cup of hot water.

LEGAL SIDE OF THE TEA INDUSTRY IN MAURITIUS

During the month of November, 2012, made a circle a report to the Minister of
Agriculture, Food Technology and Natural Resources, Hon. Nandcoomar Bodha and the Tea
Board and to shed light on the challenges facing the tea industry locally. These relate namely
the rising cost of production, and threats resulting from trade liberalization. At this context, it
has been proposed a number of measures for sustainable development of the industry.

Tea sector: RS 7 million loss

Tea Board (TB), which is responsible for ensuring that the purchase price of tea
leaves, goes wrong. Ministry issued agribusiness and calculators to estimate the losses of the
broader public since 1975. Financial projections Tea Board is overwhelming. This body
quasi-governmental, which employs ten people, and to achieve this loss for the year of 6.9
million rupees. As for those for years to come, and they are valued at Rp 8.7 million in 2013,
8.4 million rupees for the year 2014 and Rs 8.6 million for 2015.

The functions of the Tea board

Tea Board (TB) is a body granted a license for the cultivation of tea. Also provides
control over the cultivation, import and export of tea. Which also oversees standards for
picking tea leaves.

Has followed the Mauritius strategy development and realistic in the sequence that has been
the liberalization process and designed specifically for competitive advantages and
weaknesses.

The growing season for Mauritius tea usually between October and May, with
December and January being the month peak. Tea does not grow throughout the
year. However, during the months of June to September, the temperature is cool in general,
and slowing growth. Uses this down time to prune and fertilize the tea bushes In preparation
for the Big heavier come.

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 ENVIRONMENTAL ASPECTS OF THE TEA INDUSTRY IN MAURITIUS

Mauritius is prone to frequent hurricanes weather, which can affect the yield of sugar
cane, tea and hence economic growth.

Mauritius has two types of climate. Below the level of 400 meters more than the wind
(south-east) side of the island and below 450 meters on the leeward side, prevail, subtropical
climate humid.Above this altitude, the climate is more moderate, but there is no sharp break ,
differences in exposure, elevation, and distance from the sea produce a wide range of
styles. island has two seasons .hot summer and wet lasts from November through April.

The Modern tea industry

As of 1999-2000, the tea industry has moved into a new phase characterized by the
following:

(1) tea plantations covering an area of about 760 hectares.

(2) only private tea factories in the process. This is the Bois Chery, Corson, Flora and a new
plant does not Chartreuse, which began in January 2000.

(3) Tea is manufactured mainly for domestic consumption. Imports completed only where the
yield was higher than the cost of providing products in the market concerned.

(4) price chart has stopped Green guaranteed. There is no justification for the continued
existence of the new phase.

INTRODUCTION OF FIVE FORCE MODEL

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INVENTOR OF FIVE FORCE MODEL

Porter's five forces analysis is a structure for industry analysis and business strategy
development formed by Michael Porter of the College of Business Administration at Harvard
University in 1979.

Key points:
Porter's five forces analysis is an important tool to assess the likelihood of
profitability in the industry. With a little adaptation, it is also useful as a means to assess the
balance of power in more general situations.
It works by looking at the strength of five significant forces that affect competition:

1. Threat of new entry. power is also affected by power by the ability of people
to enter your market If it costs little in time or money to enter the market and
compete successfully, if there are few economies of scale in place, or if you have little
protection technologies major private , you can then enter new competitors quickly
your market and weaken your position. If you have a strong and durable barriers to
entry, and then you can maintain a positive attitude and fair advantage of them.

Introduction of force

Threat of new entry . Power is also affected by the ability of people to enter your
market If it costs little in time or money to enter the market and participate efficiently, if there
are few economies of scale in place, or if you have little protection technologies major private
, you can then enter new competitors quickly your market and weaken your position.

Mauritius in the country and has a population size 1,291,456 (2012 estimate).
Government of Mauritius is not based on any newcomer to start is own tea estate in the
country. Thus economies of scale is high.

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The Bargaining Power of Suppliers - (High)

This is how suppliers can put pressure on business. If one supplier has an effect large
enough to affect the company's margins and volumes, then it holds great strength. Here are
some of the reasons that may have the power suppliers:

Belle plant tore an annual capacity to 1.2 million kilos. No pipe products 2.0 million
kg. All these factories used Rotorvane / CTC manufacturing method. Nouvelle France has an
annual capacity of .08 million kilos, and makes both Orthodox and ROTOVANE / CTC tea.
Dubreuil, with CLC / CTC manufacture, has the capacity to 2.0 million kg

Low switching cost., Where the

 There are a very few number of suppliers for a particular product

 And there are fewer alternatives

 Raw materials are provided by the company of its own.

Supply industry has a higher profitability of the industry buying.

Bargaining Power Of Buyers - (Low)

This is the amount of stress can put customers on business. If one client has an effect large
enough to affect the company's margins and volumes, then the client a great strength. Here
are some of the reasons that clients may have power:

 There are large numbers of buyers buy the product

 Bargaining power of buyers is very Low, as buyers have a few options

available

 Buyers purchase a large proportion of the industry's total output

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  Competition for the sale of a product Mauritius tea in the market is very
difficult.

Availability of Alternatives - (Average)

What is the likelihood that someone will turn into a competitive product or service? If the
cost of conversion is low, then this is a serious threat. Below are some of the factors that
could affect the threat of alternatives:

 Alternatives available are coffee, juice, cold drinks

 Existing customers are loyal

 Different flavor in the tea industry is the same as a substitute in the tea
industry.

Tradition and culture

Drinking tea and firmly rooted in the traditions of Mauritius., The average tea
consumption on the island is one kilo per head. Mauritius average black tea drinks.
Mauritius some of Chinese descent are taking green tea.

Tea price is much cheaper when compared with coffee. Known as the Queen of the
drinks, tea fascinates millions all over the world. While increasing awareness of the
population to adapt to dietary habits that promote health, it is expected that the average
Mauritius will continue to drink tea as they are getting more and more scientific
evidence to confirm that tea is good for health, and can be consumed to prevent cancer
development and reduce the risk of heart disease.

Competitive Rivalry - (High)

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This describes the intensity of competition between existing companies in the
industry. Industries highly competitive generally earn low returns because the cost of high
competition. May result in a highly competitive market of:

 Industry growth is slow

 The market is dominated by a large number of unorganized players

 As is the size of a limited company, but on the other way the retailer of tea
is also able to compete. The dealer or retailer of tea able to compete if the
company paid a sufficient amount of commission or margin on the product.

SWOT ANALYSIS
.

SWOT OF CORSON TEA

Strength

The raw-material for tea is supplied by its own supplier

 Corson TEA is a leading company in the tea industry in Mauritius.

 They have invested in sophisticated machinery to develop new markets.

Weakness

 Competition for the sale of a product Mauritius tea in the market is very
difficult.

 Difficulties in the introduction of mechanization in field operations due

to topographical constraints and quality.

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  Low declaration on the local market.

 Poor distribution because not all products are available everywhere.

Opportunity

 Strong level of awareness around the world as to the health of the

attribute which led to the tea growing demand for good quality tea.

 Increase the power of small farmers and show a good response to a

proposal by the Tea Board for a collective approach.

Threat

 Hurricane hard summer in Mauritius can produce damage to the quality

of the tea plant.

 A younger age than shrubs (better quality of tea) than other domestic
goods.

 Competition must be maintained on alternative products such as soft

drinks and juice.

BOIS CHERIE TEA FACTORY

Strengths
 Continuous innovation to incur value for customers .

 FIRST to provide a range of soft in the country.

 The pioneers of the nose and throat er green tea in Mauritius.

 The only company to offer round tea bags in Mauritius.

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Weakness
 It is a major obstacle to the Bois Cherie tea to put out in the minds and

Encourage consumers to engage in brand switching.

 Most sales issue, distributor cash then they can turn to competitors.

 In the long term there will be a lucrative market for tea and ice tea flavor.
Opportunities
 In the long term there will be a lucrative market for tea and ice tea
flavor.

 Market growth of the market because they tea bag intuitive object Continuous
innovation to increase value for customers

Threats
 Exorbitant import duties to encourage smugglers to cultivate tea.

 Stable rules and management of public companies hinders tea.

 Strong competition in the rural and urban areas

 An increase in global tea prices

TEA INDUSTRY ANALYSIS IN MAURITIUS

1. HISTORY

 The priest, the French report Galloys father, and tea factory, Camellia Sinensis, to
Mauritius in 1760. Pierre Poivre planted widely in 1770. However, until the advent of
the British that he was little more than a station museum. In the 19th century, Robert
Farquhar, the governor of Mauritius , and encouraged commercial cultivation of tea.
had a tea garden at Le Reduit. Unfortunately, when he left Mauritius, abandoned
farms, and no one was interested in this scheme.

2. A Major developments

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  In 1955, the government launched a plan possession of small tea farmers project
planning. Objective of the project is to establish a small tea plantations acquisition of
Crown Lands lease at the end of the day on the long-term nominal rental rates for
smallholder tea grouped in cooperative society.

 Project farmers scheme "aims to lease state land to prospective farmers who were
accepted to create tea plantations in their own costs.Villages have been created by the
government of tea to encourage smallholders to live in the vicinity of the tea
plantations.

3. Policy in the tea sector after independence

 To care for the best benefit of all stakeholders, and repeat the command and control of
the tea industry and the replacement of the control of the tea industry for the year
1975.

 Law gives the Tea Board with powers undue to replace tea Control Panel. After
promulgation of tea censorship law on the industry in 1975, and included in the TDA
and metayers private property that fall outside the scope of the Decree of 1959, which
is located within the jurisdiction of the Tea Board. As a result, , Council began setting
the prices of green leaf to smallholder TDA and metayers.

4. The critical situation in the late eighties

 Completion of the apprentice training program smallholders in the early eighties. Was
only in 1984, a year marked by the booming tea prices that have expressed this
concern, and that could have been rented out to tea plantations for them.

 In July 1986, have been filed on the Mauritius Tea Factory Co., Ltd. to take the
marketing activities of TDA and tea manufacturing.

 A limited role of smallholder TDA management and monitoring of papers

5. Rehabilitation plan for a period of three years, in collaboration with the

Government of India

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  In 1990, an attempt to correct the unhealthy situation in the tea sector, the government
approved a rehabilitation plan for 3 years by the Indian consulting team
ready. Rehabilitation plan implementedas 1991-1992.

 The main objective of the plan, co-funded by the Government of India and Mauritius,
in order to improve efficiency at all levels - production, processing and marketing,
thus ensuring the continuity of the industry and profitability.

6. Agricultural diversification of the public sector tea

 Continuous attempts to improve the economy of a successful industry. Mauritius can

not compete with the major producing countries such as India and tea, Sri Lanka and
Kenya because in these countries, and is produced tea at an altitude much higher than
Mauritius. As a result, the quality is not comparable. To maintain a level smallholder
livelihood of tea, and the government came forward with projects to diversify into
other activities mainly sugar cane tea. package of incentives forward to tea planter to
encourage him to join the project.

7. Modern tea industry

As of 1999-2000, the tea industry has moved into a new phase characterized by the
following:

(1) tea plantations covering an area of about 760 hectares.

(2) only private tea factories in this process. Is Boa Sherry, Corson, plants and a new plant is
not chartreuse, which began in January 2000.

8.Future for the tea industry in Mauritius

 At present, the government through the Tea Board protects the tea industry
locally. Indeed the Council, as a general principle, do not allow the importation of
black tea except for a small amount for the purposes of blending. Imported tea has to
pay for the import license from 5,000 rupees / - for each shipment of any kind of tea
imported, which meets the import decreased 17% of the value of CIF Mauritius and
customs duties of 40%. with the general trend of global trade liberalization, the future
of the tea industry local depend on how successful the government will protect the
domestic industry tea to prevent the import in the country.
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9.The factories

 Belle plant RIP has an annual capacity to 1.2 million kilos. No pipe products 2.0
million kg. Both of these plants are used Rotorvane / CTC manufacturing method.
Mauritius tea are mainly of a pattern of carbon tetrachloride-making. They describe as
tea tasters copper in color with some good body and flavor.

10.The season

 The growing season for Mauritius tea usually between October and May, with
December and January being the month peak. Does not grow tea throughout the year.
However, during the months of June to September, the temperature is generally cool,
and slowing growth.

11.Export Packing

 And packaging for finished products, especially all kinds of tea grade principal is
generally done at the level of five paper bags lined with aluminum foil., Tea stacked
on real estate, stretching wrapped and ready for shipment.

12.Shipping

 Is shipping through the Port Louis where maritime companies a variety of services,
import and export in the country. There sailing repeated to the UK and European ports
big and the United States, Canada, South Africa, Pakistan and other destinations.
Freight rates and sailing competitive and frequent.

13. Marketing

 The tea is marketed in Mauritius in different parts of the world. Historically, I found
the majority of tea on their way to the United Kingdom, South Africa and Russia, and
the loyalty of long and customers alike.

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BANKING INDUSTRY

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 Mauritius has a relatively large and well-developed domestic financial system and a
growing offshore sector in Mauritius . Mauritius belongs to a select group of developing
countries where domestic bank assets represent approximately hundred percent of Gross
Domestic Product (GDP), and contractual savings up to 40 percentage of GDP. The
growing offshore financial sector is also large relatively to GDP, but weakly integrated
with the domestic economy.

The basic financial sector infrastructure includes payment, securities trading and
settlement systems are modern and efficient. Access financial services are extremely high
with more than one bank account per capital and widespread branches banking and
Automated Teller Machine (ATMs).

The Mauritian banking industry conducted by 20 banks, of which 7 are local banks, 8
are foreign owned subsidiaries, one is a joint venture and four are branches of foreign
banks. All the banks in Mauritius are licensed by the Bank of Mauritius to carry out
banking business locally and internationally. Some of them biggest and reputable
international banks are present in Mauritius and actively carry out international cross
border activities.

This is a list of the main banks in Mauritius. There are currently dozen banks in to the
Mauritius .

 The Mauritius Commercial Bank(MCB)

 The State Bank of Mauritius(SCM)
 Barclays Bank
 HSBC
 Bank of Baroda(BOB)
 Bramer Banking Corporation
 Bank One
 Standard Bank
 Standard Chartered Bank
 Deutsche Bank
 AfrAsia Bank

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After that we have give such brief about the banks and its history.ans then we started
some brief introduction about the SWOT analysis.
We selected 3 banks give as below:
1. MCB(MAURITIUS COMMERCIAL BANK):

Mauritius Commercial Bank (MCB) is the oldest and largest banking institution of
Mauritius. It operates a system of forty two branches and over 4,000 point of sale
terminals across the island.

Strengths

1. MCB was the first privatized bank that giver it an edge over other nationalized
banks as it can develop any strategy consistent with the demand of market and free
form any political influence.

2. Mauritius Commercial Bank (MCB) control roughly 70 percent of system

aggregates.

3. MCB is the largest private bank and market leader.

Weakness :

(72 percent of GDP), this implicit contingent liability is quite high and may be
unmanageable. MCB and SBM are widely considered “too big to fail” by depositors,
and, in past cases of bank resolution involving smaller banks, depositors did not suffer
losses

2. SBM (STATE BANK OF MAURITIUS)

SBM is the 2nd largest bank in Mauritius with a market share of about 25% of
domestic banking assets. In June 2011, its total asset valuation was approximately
US$3.34 billion (MUR:95.7 billion), with shareholders' equity of about US$557.1 million
(MUR:16 billion).

Strengths:

 Treasury:

 EBusiness
 Risk Management

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  Diversified model

 Higher returns

 Human Resources
 Market Firsts

 Improved asset quality

Weakness:

 Loans to deposits ratios:

 Loans and advances to customers: 66,489,131

 Deposits from banks 466,384

 Deposits from non-bank customers 79,190,928

3. HSBC BANK OF MAURITIUS

Current in Mauritius ever since 1916, the HSBC has two entities – a branch of the
Hongkong and Shanghai Banking Corporation Limited and a local subsidiary, HSBC
Bank (Mauritius) Limited. HSBC operates 11 trade branches offering a full fledged
variety of trade banking, cards and assets managing products. HSBC is the leader in the
offshore division in Mauritius, offering its clients complicated and structured financial
solutions.

Staff
At 31 December 2011, HSBC has 409 employees

Strengths--
 International Finance

Weaknesses-
 Branding.
2. Record profits ending

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Five Forces Analysis of Mauritius’s Banking Sector

Porter five forces analysis is a framework for industry analysis and business strategy
development formed by Michael E. Porter in year 1979.

These competitive forces are:

The threats of new entrants
The threats of substitute products
The bargaining power of suppliers
The bargaining power of customers
The competitive rivalry

The use of these five forces model helps in analyzing the attractiveness and also the
competitive positioning of the business in the industry or market in general.

THREATS OF NEW ENTRANTS (Low)

According to Michael Porter, the threat of new entrants depends on the barriers to
enter which are factors that need to be overcome by new entrants if they are to compete
successfully.
The following are the some barriers to entry relating to the Mauritius banking sector:
Capital requirements, government policies, customer loyalty, switching
costs,economies of scale, Expected retaliation.
The above are the most common barriers to entry. The most of them are in the favor
of the existing banks. So, the overall threat of entry is low as the barriers are high for the
new entrants.

BARGAINING POWER OF CUSTOMERS (Low)

The overall power of the customers in Mauritius is low because most of the people are
normal middle class ones and there are very few corporate customers and Mauritius is
still developing its knowledge in corporate banking. It is more in retail banking.
Therefore the bargaining power of the customers seems to be low.

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BARGAINING POWER OF SUPPLIERS (Low)

As Professor Porter pointed out that Suppliers can exert bargaining power over
participants in an industry by threatening to raise prices or reduce the quality of purchased
goods and services.

There are three main suppliers of the bank's product and money. These are as under:
The depositors, the credit market and the central bank.

The overall power of the suppliers in the banking industry is low. They don't pose a threat
of influencing the decision of the banks in general.

THREATS OF SUBSTITUTE PRODUCTS (High)

The substitute goods or products or services are those goods that are different from the
ones that one firm offers but they perform the same function just like the original
products. It is a replacement of the original product.

This force shows to be high in the banking industry. So, the customers have a choice and
it is up to them what they choose. This creates competition between the firms in the
banking sector. However, due to the fact that it is very much safe and people have much
confidence in banks then this threat is minimized.

THE COMPETITIVE RIVALRY (High)

Competition or Rivalry simple means carrying out some tasks with the fellow members
and then trying to perform better than them all.

There are a number of factors affects the degree of rivalry like:Competitor balance,
industry growth rate and low differentiation.

The overall competitive rivalry is high.

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WHAT IS PESTEL study?

The PESTEL framework is designed to provide managers with an analytical tool to

identify different macro-environmental factors that may affect industry strategies, and to
assess how different environmental factors may pressure business performance now and
in the future.

The PESTEL Framework includes six types of important environmental influences:

political, financial, community, scientific, environmental and legal. These factors should
not be seen as sovereign factors. Factors such as technological advances may probably
affect the social and economic conditions in different markets.
The input for business managers is therefore to discover the main drivers of change that
may affect business strategies, and to discover the factors most likely to influence the
performance of the business.

In conduct of PESTEL analysis, business managers may create strategy that take several
macro-environmental factors into concern, so that the strategy formulation process will be
as sensitive to current and future environmental factors as possible.

1. ENVIRONMENTAL REGULATION AND PROTECTION\

The bureau of Environment was created in 1992 following the promulgation of the

Environment Protection Act (EPA) in 1991 which has subsequently been replaced by a
new EPA in 2002.

TAX POILICY:

In reviewing the framework, several conclusions emerge about the way the collection of
incentives affects private investment:

The incentive management encourages investments in the domestic market more than for
exports;
It encourage savings in capital equipment rather than investments in people;
It discourage foreign investments relative to domestic investments;
It favors large firms over small firms.

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 2. INTERNATIONAL TRADE REGULATION

Mauritius continues to be among the nearly all competitive, stable, and successful
economies in Africa, with GDP of USD 9.5 billion and per capita income of in excess of
USD 7,400 in 2011, one of the main in Africa. Mauritius actively seeks distant
investment and prides itself on being open to foreign investment. According to the Bank
report “invest Across Borders” published in July 2010, Mauritius is one of the world’s the
majority open economies to foreign ownership and one of the highest recipients of
Foreign Direct Investment (FDI) per head of population. typical FDI per head from 2005
to 2009 was USD 217

ENPLOYEE LAWS

Mauritius has a functioning legal system based on elements of British common law and
French social law. The constitution guarantees, and political practice greetings, the
separation of powers, the independence of the courts, and freedom of the press. Even the
post-colonial constitution institutionalized the office of an ombudsman entrusted with the
task of defensive civil rights. However, some pathetic points have also become obvious.
First, the national Human Rights Commission has repeatedly criticized the brutality of the
police force, recruit mainly from the Hindu greater part against members of other ethnic
groups.

Economical factors affecting banking industry

2.1 Economic growths

Operators, members of the private sector, economic observers ... All are on the
same wavelength. Mauritius has a growth potential of 5% to 6%. But the reality is
quite different. unnatural by the economic disaster, the country's growth barely
surpass the 4% according to data from Statistics Mauritius 3.5 percentage in
2011, 3.3percentage in 2012 and 3.7 percentage in 2013.

2.2 Interest rates and monetary policy

Reduced interest rates, normally, specify a lower lending rate. This rate affects the
ease of use of funds that commercial banks may borrow through the Central Bank

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 - borrowing becomes cheaper when interest rates reduce. Due to the very slow
economic recovery in our main markets, growth will be markedly lower (closer to
3.0%) than the targeted level of 4% at the establish of the year. A cut in the REPO
rate would therefore, in assumption, reduce the cost to business and enable them
to restructure. It would also carry interest rates in Mauritius in line with its main
trading partners

2.3 Government spending

he financial crisis led to a prolonged Wide downturn in 2008. Governments and

Central Banks were forced to take necessary actions to fix the disaster. Capital
injection and interest rate cuts were common to help borrowers to pay back their
loans. The low consumer confidence and investors’ confidence in the world
economy resulted in many firms and financial institutions filed for bankruptcy
such as the fall down of Lehman Stimulus packages were implemented in many
countries to help boosting economic

2.4 Unemployment policy

The unemployment rate is rising. It rises 8% in 2012 against 7.9% in 2011,

according to figures Mauritius. There are to date 47 ,100 jobless in the country
20,500 were aged under 25 yrs.A number that is expected to rise in 2013 even
though the Mauritius Employers Federation does not provide "group layoffs."

2.5 Inflation rates

It is not a top secret! Inflation occupy the forefront of the economic sight this year. To the
Governor of the Bank of Mauritius and a few economists, inflation will resume the bull
by the horns due to several factors

2.6 Exchange rates

Market capitalization on the Stock Exchange of Mauritius (SEM) reflected the

volatility of the economy of 2011.It stand at USD 6,505 million at 30 June 2011
and ended the year at USD 5,722 ml, up from USD 5,679 million in December
2010, thus achieving a 1% growth rate.

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SOCIAL AND TECHONOLOGY

Mauritius became independent of the U.K. in 1968 and became a democracy in 1992.
The Republic of Mauritius includes the islands of Mauritius, Rodriguez and Agalega.
Mauritius covers a area of 2,040 square kilometers with an estimated people of 1.25 million
and a population density of 628 people per square km

SOCIAL

Mauritius maintains an extensive set of social policies and programmers consisting of

free learning, free health care, a basic retirement fund, assistance to families with special
needs, low cost accommodation, subsidies for rice and flour, social aid transfers,and several
micro-credit schemes.

Economy

Mauritius has solid economic fundamentals: open to foreign direct investment (FDI)
(US$273million in 2011, 2.9% of GDP), export oriented (US$5,900 million in 2011, 53% of
GDP), high standards of governance (46th in the 2011 Transparency International Corruption
Perceptions Index) and business friendly (the top-ranked African country in business climate,
ranked twenty third globally in the 2011 World Bank Doing Business report). The country is
ranked sky-

POLITICAL LIFE

Government
The British Westminster model of government is the basis for Mauritius. In anticipation of
1992 the queen of England was the head of state and queen of Mauritius in a legitimate
monarchy, with Mauritius as per common wealth.scraping in terms of competitiveness,
speculation climate and governance.

Leadership and political official

All of Mauritius's prime minister have been Hindu. The first, Sir Seewoosagur
Ramgoolam, lead the self-government movement in Mauritius.

Social problem and controls

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 In February 2000 several days of rioting occurred in Port Louis. A fashionable creole
singer, Kaya, died at the same time as in police protection

Higher-Education

The University of Mauritius was recognized in 1971. The original focus was oriented
toward agriculture and manufacturing. Since 1989s the university has augmented its majors
to include the humanities.

SOCIALIZATION

Child rearing and education

Education is free from the primary to the tertiary level and is mandatory until age 12. The
government considers education one of its greatest concerns and has an "education for all"
policy to ensure fair education to the dissimilar socioeconomic

School of Sustainable Development and Tourism (SSDT)

The School of Sustainable Development and Tourism caters for very specific areas of the
Mauritian economy such as Tourism, Sustainable growth and ecological Sciences. An MOU
has also been signed with the Hotel School of Mauritius for UTM students to benefit from
their facilities for practical sessions

TECHNOLOGY

Introduction to Banking

Mauritius has a long tradition of commercial banking dating back to 1812 and has
historically adopted a cautious attitude to banking development. Until 2004, banking was
opening into two separate banking regimes offshore and onshore with only about ten
offshore banking units admitted in Mauritius.
The domestic banking system, while sound, is in danger to external economic shocks
and to a downturn in economic activity. The exposure to these shocks is improved by highly
concentrated structured of the banking system.

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The banking system faces a relatively small market risk, inter-alia, became of banks heavily
reliance on variable rates on both the leading and deposit sides and of well-matched foreign
exchange books.

Repo Rate & Liquidity

The weakening of the global environment pushed the Monetary Policy Committee of the
Bank of Mauritius to leave the key repo rate unchanged at 5.50% at its meeting held on the
12th of September 2011.

Rating

This parameter is considered as most effective for any Bank. From this rating we should
able to know about how much efficient for any country? Now we have include this topic that
we get below data :

On the 30th june 2011, the Bank of Mauritius published an overall rating for banks in
Mauritius based on the CAMEL methodology. The CAMEL rating is an international bank-
rating which assesses the capital competence, assets quality, management quality, earning
and liquidity of banks For any industry most important is financial ratio. On that bases any
investor can know at in which or where to invest and when to invest its money that create
own value.

From value of Earning Per Share we can conclude that here, MCB is more earning than
SBM. That MCB has 18.90 rs. Where SBM has 7.80.

Where DPS from where we can know how much is return given by company or Bank.
Which MCB is give 5.75 and SBM 3.00

Overview of the Financial system:

Mauritius has well-developed and relatively large domestic monetary system and a
growing offshore sector.

The domestic monetary system consists of, A large banking sector with assets of some US
$4.3 billion, equivalent to about 100 percent of GDP;

A sizable insurance and pension sector with assets equivalent to about 41 percent of GDP;

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A number of nonbank financial institution including 11 leasing companies (with assets close
to 3.5 percent of GDP);

BANKING ENVIRONMENT IN MAURITIUS

Mauritius has a safe banking environment for local and foreign investors.

With the inception of The Mauritius Commercial Bank Ltd since 1838, Mauritius, the
emerging tiger of the Indian Ocean has shown its proven stability to the World. Other banks
followed its path and they are as follows

Banking and Finance in Mauritius

Mauritius has a relatively large and well-developed domestic financial system and a
growing offshore sector. Mauritius is one of the select groups of developing countries where
domestic bank assets represent approximately 100 percent of Gross Domestic Product (GDP),
and contractual savings exceed 40 percent of GDP.

Banking Sector in Mauritius

The Bank of Mauritius is empowered by the Banking Act 1988 and the Bank of Mauritius
Act to carry out the supervision and regulation of banks based of Mauritius. The banking
sector of Mauritius recorded stable growth in the recent period.

Capital Markets in Mauritius

Globalization has ushered in a process of integration of the world economic and financial
systems. The rising interdependence of the global financial markets into a mega market place
was evident during the Asian financial crisis of the later nineties and the simultaneous
downturn in stock markets across the world over the past three years.

Fixed Income Market

A Primary Dealer System was established in March 2002.There are six principal dealers;
five banks and one broker. Foreigners can contribute in the market through approved primary
dealers or brokers. Government securities mainly include treasury bills, treasury notes,
government bonds and progress loans stocks.

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Insurance Sector in Mauritius

The insurance industry in Mauritius is relatively well developed. It makes broad use of
reinsurance facilities and is free from the persistent premium, product, investment, and
reinsurance controls that have bedeviled the insurance markets of so many developing
countries around the world.

Major Banks in Mauritius

Mauritius has a good, reliable and dynamic banking system. The banking system is
characterized by small number of banks dominated by the Mauritius Commercial Bank.

LEGAL BANKING SECTOR OF MAURITIUS

An Act To repeal and replace the law establishing and relating to the Bank of Mauritius
and to provide for related matters ENACTED by the Parliament of Mauritius, as follows -

PART I - PRELIMINARY PART II – CONSTITUTION OF THE BANK

3. Establishment of the Bank of Mauritius

(1) The Bank of Mauritius recognized under the repealed Bank of Mauritius Act shall be
deemed to have been established under this Act.

(2) The Bank shall -

(a) Be a body corporate with continuous succession;

(b) Have a common seal; and

(c) Be able to entering into contracts, of acquiring, holding and disposing of property,
whether movable or immovable and of suing and being sued.

(3) Subject to this Act, the Bank shall, in the chase of its objects, execute its functions
independently.

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 (4) Focus to this Act, the Companies Act 2001 and the Banking Act 2004 shall not apply
to the Bank.

PART III - CAPITAL AND RESERVE

10. Capital

(1) Subject to subsection (2), the stated capital of the Bank shall be one billion rupees.

(2) The Minister may, ahead the recommendation of the Board, increase from time to
time the amount paid as capital of the Bank by transfer from the General Reserve Fund.

(3) The amounts paid as capital shall -

(a) Be not less than 1 billion rupees;

(b) Be subscribed and held exclusively by the Government; and

(c) Not be moveable or subject to any encumbrance.

PART IV - BOARD, MANAGEMENT AND STAFF

12. Board of Directors

(1) The general policy of the associations and business of the Bank, other than the
formulation and determination of monetary policy, shall, subject to this Act, be entrusted
to a Board of Directors.

(2) The Board shall consist of -

(a) The Governor, who shall be the Chairperson;

(b) Two Deputy Governors; and

(c) Not more than 7 and not less than 5 other Directors appointed in accordance with
section 16.

PART V – ACCOUNTING, STATEMENTS AND TRANSPARENCY

30. Financial year

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 The financial year of the Bank shall start on 1 July of each year and end on 30 June of the
succeeding year.

31. Accounts and audit

(1) The accounting of the Bank shall, at all times, be carried out in consistency with
accounting principles applicable to central banks and best international practices.22

(2) The accounts of the Bank would be audited at least once a year by such auditors as
may be appointed by the Board.

PART VI - CURRENCY

34. Unit of currency

The element of currency in Mauritius shall be the rupee, which shall be divided into 100

PART VII - OFFICIAL FOREIGN RESERVES AND SPECIAL RESERVE FUND

46. Official foreign reserves

(1) Subject to subsection (2), the Bank shall maintain and manage the official foreign
exchange reserves of Mauritius consisting of all or any of the following -

(a) Gold;

(b) Foreign exchange in the structure of currency or bank balances held abroad;

(c) The property by Mauritius of Special Drawing Rights of the International Monetary
Fund;cents

PART VIII – BANKING SERVICES REVIEW PANEL

53A. Banking Services Review Panel

(1) It is established for the purposes of this Part an ad hoc review panel which shall be
known as the Banking Services Review Panel or the Review Panel.

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 (2) Any financial organization which is dissatisfied with a decision of the Bank relating to
the imposition of –

PART IX – MONETARY POLICY COMMITTEE

54. Monetary Policy Committee

(1) There is established for the purposes of section 5(1)(a) and (2)(a) a Monetary Policy
Committee which shall consist of -

(a) The Governor, who shall be the Chairperson of the Committee;

(b) The 2 Deputy Governors;38

PART IXA – FINANCIAL STABILITY COMMITTEE

55A. Financial Stability Committee

(1) It is set up a Financial Stability Committee which shall consist of –

(a) The Minister, who shall be the Chairperson of the Committee;

(b) The Governor;

(c) The Financial Secretary; and

(d) The Chief administrative of the Financial Services Commission established under the
Financial Services Act.

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TEXTILE INDUSTRY

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HISTORY OF TEXTILE INDUSTRY WORLDWIDE
Nobody knows exactly when the spinning and textile weaving began. It has been said
that people knew how to unite still 27,000 times ago. This was even previous to
human were able to domesticate animals. The oldest real piece of tissue was found in
southern Turkey.

People have used fibers found in the processes of nature and labor to produce fibers in
the fabric. While high technology was not available, weavers have created a wide
variety of fabrics. Fabric dyeing has been done to satisfy the universal human need for
beauty. In time, more complex social and political organization of the people has
changed. With the growth of cities and nations, improvements in technology have
come up and there was an important development in international trade, the two
textile concerned.

HISTORY OF MAURITIUS TEXTILE INDUSTRY

The material and garments manufacturing in Mauritius

BASIC DATA OF THE TEXTILE INDUSTRY

Mauritius is one of the largest fully fashioned knitwear producer, the third largest exporter of
new products of pure wool, and the fourth largest provider of Europe T-shirts. In the EU,
which is almost two-thirds of exports, textile producers and the Mauritian clothing received
duty-free and quota-free for 37 years under the Convention and later the Loma Agreement
cotton. Mauritian textile manufacturing companies and began to receive the same access to
the U.S. market under the Act, the Act on the African Growth and Opportunity Act (AGOA).

THE CURRENT SITUATION

For the past 25 years, Mauritius has benefited from a series of positive conditions that helped
create a strong textile industry and garment foreign and local major investment. The area was
one of the main providers of jobs and contributed about 12% of GDP. The situation today

172
with the dismantling of the multi-fiber agreement and the new challenges of a highly
competitive global market has left the area in a weakened state. The positive conditions that
contributed to the prosperity of industry have all but disappeared. This Mauritius forced to
rethink the textile and clothing in the nation, but a lot of expert considers that this method has
started too late.

Mauritius textile industry

• The textile industry in Mauritius and market size

 Textiles sector contributes 14 per cent of industrial production

 4 percent of GDP
 10.63 percent of the export earnings of the country

• Market Size

 The share of world exports of textiles Mauritius to increase from the current 4% to
about 7% over the next three years

• Growth Rate

 3-4 present during the past six years

 9-10 per cent over the last five years

 Top textile industry in Mauritius

 CIEL Textile Limited

CIEL Textile Limited is the holding company of the Group of CIEL Textile Group. Through
its subsidiaries, it is involved in three types of activities in textiles and clothing.

 TAMAK TEXTILE

Tamak is a reliable manufacturer and design clothing for men, women and casual fashion
clothing facilities for children with complete printing and embroidery Maurice.

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  THE ADITYA BIRLA GROUP
 ADMIRAL TEXTILE
 EAGLE AND TEXTILES
 AIRNESS TEXTILE
 ARVIND MILL

HISTORY OF THE INDIAN TEXTILE INDUSTRY

The history of textiles in India dates back almost five thousand years to the time of the Indus
civilization. Evidence that India has been trading silk in exchange for spices 2nd century have
been found. This shows that the textile industry is one that has existed for centuries in our
country. Recently there has been a significant increase in demand for Indian textiles on the
market.

MAURITIUS TRADE TIES WITH INDIA

Maurice has a special significance to India for historical, cultural and political reasons.
Mauritius enjoys a strategic location in the Indian Ocean to the southwest. 68% of the
population is of Indian origin. India and Mauritius have very close and unique relationship
that covers virtually all aspects of bilateral and multilateral relations characterized by
common kinship, culture, religion and interests. Since independence in 1968, Mauritius has
enjoyed close political ties with India.

INDIA MAURITIUS TRADE RELATIONS

This site provides detailed information on India trade relations Mauritius. The site also
focuses on the current development of trade relations between India and Mauritius.

Maurice India trade relations are focused on improving trade and business
relations as well as the following lines:

 Trade Policies
 Negotiation procedures

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  Commercial contracts
 Administrative and regulatory procedures trade
 Opportunity for do business and investment
 The business networking

INDIA MAURITIUS TRADE RELATIONS - POLICY ADOPTED BY

INDIA

 The removal of government controls and creates an atmosphere of trust and

transparency to promote industrialization and crafts.
 The simplification of trade and legal procedures and lower transaction costs.
 Simplification of taxes and duties on inputs used in export products.
 Facilitate technical and infrastructural change in all sectors of the Indian economy,
especially through import and thus increase the value and productivity, while
achieving global quality standards.

INDIA MAURITIUS TRADE RELATIONS - POLICY ADOPTED BY

MAURITIUS

 Investment Guarantee to promote joint ventures

 Identify the elements of trade and investment
 Boost bilateral trade
 Take into custody illegal deal between the two country

TEXTILE MANUFACTURING PROCESS

Textile industry is an important industry. It is based in the conversion of three types of fibers
in yarn, and the fabric and textiles. These are then fabricated into clothes or other objects.
Cotton remains the most important natural fiber, so is treated in depth. There are many
methods available in varying stages of spinning and forming coupled with the complexity of
the process of finishing and coloring to produce a wide range of tissue products. There is a
large industry that uses hand techniques to achieve the same results.

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 PRODUCTION PROCESS

1) SPINNING PROCESS:

Cotton fiber grows in the seed or capsule, the cotton plant. Each fiber is a single elongated
cell that is flat, twisted, and with a wide ribbon as hollow interior (lumen) is composed of
about 90 percent cellulose and about 6 percent moisture. The rest is natural impurities. The
outer surface of the fiber is coated with a wax like protective coating which gives the fiber a
light adhesive quality.

2) WARPING PROCESS:

Buckling is transferred many son the creel package end forming the single parallel sheet
wound on a beam or beam section wire. Warping can handle all types of materials, including
coarse and fine filament and son basic monofilament, smooth and textured son, silk and other
synthetic son such as glass.

3) DYEING PROCESS:

Two types of dyeing technique:

 SLASHER DYEING
 dyeing ROPE

4)SIZING PROCESS:
Checking and monitoring the sizing process

The easy to follow visualization and recipe management, in which all parameters of the
textile machine and stored, allows for quick and easy programming. The sizing process is
controlled automatically. All set points are shown with upper and lower limits of tolerance.
Deviations from the set value are displayed at a time and instructions for their correction are
explained in the language of the operator.

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5)WEAVING PROCESS
Weaving is interlacing stuffer warp son perpendicularly to each other at 90 degrees. They are
virtually an infinite number of ways to warp and weft interlacing son.

6)PROCESSING /FINISHING
Finishing gray denim fabrics normally made after weaving. It takes an important role in the
properties of the fabric appearance, softness and shrinkage of the residual tissue.

PESTLE ANALYSIS
1) POLITICAL FACTORS
 The factors are how and to what extent a State intervenes in the economy.
Specifically, political reasons include areas such as tax policy, labor law,
trade restrictions, environmental law, political stability and tariffs.
 In addition, governments have an important influence on health, education
and infrastructure of a nation.
 Consider the policy of your work.
 How does / will / would be the policy of the Government to amend the
proposed work?

Government also focuses on different issues such as:

 The textile industry.

 The terrestrial ocean industry
 Health and biomedical industry.
 Food and Biotechnology.
 Industry knowledge and renewable energy.

1. TAX POLICY IN THE TEXTILE INDUSTRY IN MAURITIUS

177
2. LABOUR LAW OF THE TEXTILE INDUSTRY IN MAURITIUS

3. ENVIRONMENTAL LAW OF THE TEXTILE INDUSTRY IN MAURITIUS

4. RESTRICTIONS ON TEXTILE TRADE IN MAURITIUS

5.POLITICAL STABILITY OF TEXTILE INDUSTRY IN MAURITIUS

2) ECONOMIC FACTORS
 Factors include economic growth, interest rates, exchange rates and the inflation
rate. These factors have major impacts on how businesses operate and make
decisions.
 Interest rates affect a firm's cost of capital and therefore to what extent a business
grows and expands.
 Exchange rates affect the costs of exporting goods and the supply and price of
imported goods in an economy

 Silver
 How much can you spend?
 How much should you spend?
 How will you spend?
 Costs
 The sale of the product of your work

ECONOMY - OVERVIEW:

Mauritius, with its strong material division, has been fine located to take benefit of the
African Growth and Opportunity Act (AGOA). Sound economic policies of Mauritius and
prudent banking practices helped to mitigate the negative effects of the global financial crisis
in 2008-09. GDP grew in the range 3-4% per year in 2010-12, and the country continues to
expand its trade and investment outreach around the globe.

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EXIM DATA

Exports:
$2.631 billion (2012)
country comparison to the world: 135

 Exports - commodities:
clothing and textiles, honey, cut plants, molasses, fish
 Exports - partners:
UK 21.3%, France 17.8%, US 10.5%, Italy 8.1%, South Africa 7.7%, Spain
7.1%, Madagascar 6.2% (2011)

Imports:
$5.111 billion (2012)
country comparison to the world: 128

 Imports - commodities:
manufactured goods, assets tools, products, fuel goods, chemical
 Imports - partners:
India 25.2%, China 13.6%, France 9.1%, South Africa 6.9% (2011)

1. INCREASE IN NATIONAL INCOME

2. CONTRIBUTION TAXES

3. ECONOMIC STABILITY

4. IMPROVEMENT IN BALANCE OF PAYMENTS

5. AGRICULTURAL DEVELOPMENT

7. COLLATERAL INDUSTRIAL DEVELOPMENT

8. ENHANCED GOVERNMENT REVENUES
9. DIVERSIFICATION OF ECONOMY
10. INFLATION

179
3) SOCIAL FACTORS
 These factors consist of the educational aspect and include health consciousness,
the rate of population growth, age distribution, career attitudes and emphasis
on safety.
 trend in societal factor influence the require for a company's products and how this
business works.
 For example, an aging population may involve a workforce increasingly reluctant
(thus increasing the cost of labor). In addition, companies may change various
management strategies to adapt to these social trends (such as recruiting older
workers).

 This could be about hearing

 What is the job?
 Where will go?

Social factors affecting Mauritius textile industry:

1. GLOBALIZATION:

Textile products sold in Mauritius from about the humanity, a lot from increasing country.
This overall trade may lead to improved economies and creates jobs for many people - often
women - by providing financial stability and a chance to run away lack.

2. WORKERS 'RIGHTS / EDUCATION:

Lower prices of textile products into production Mauritius Cheap demand throughout the
supply chain, gatherers and workers on farms for factory workers.

3. HEALTH AND SAFETY:

Workshops in developing countries may have less stringent regulations than by those
apparent in the United Kingdom or the more developed countries.

180
4. ANIMAL WELFARE:

With materials such as wool, leather and fur, animal husbandry and animal handling is an
integral part of the production process. Poor farming practices can lead to neglect or animal
abuse, malnutrition, infections and potential symptoms.

4) TECHNOLOGICAL FACTORS

 These factors consist of technical aspect such as R & D activity, automation,

technology incentives and the rate of technological change.
 They preserve find out barrier to access, minimum efficient level of production and
outsourcing influence decisions.
 Technological changes can affect the cost, quality and foster innovation.

 Who do you use technology?

 Why?
 How would it change your work?
 How would it change your work habits?

Textiles are made of fibers, son, fabrics and finishes. Each of these steps has a variety of
processes involved to achieve the next step.

Some of the machinery included in the various departments of the cloth developed, such
as:

o blast chamber
o carding
o Comb
o Weaving
o Bleaching
o Test
o Finish

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 5) ENVIRONMENTAL FACTORS
• Factors include ecological and environmental aspects such as weather, climate,
and climate change, which may especially affect industries such as tourism,
farming, and insurance.

• Growing awareness of the potential impacts of climate change is affecting how

companies operate and the products they offer, both creating new markets and
diminishing or destroying existing ones.

 Where do your materials come from?

 What is the cost?

The Mauritian legal system is a mix of French and British legal traditions.

SECTOR OF THE ECONOMY

Since independence in 1968, Mauritius has developed from a low-income, focusing on

agriculture to a middle-income diversified economy with growing industrial sectors, financial
and tourism economy. For most of the period, annual growth has been of the order of 5% to
6%. This remarkable achievement has been reflected in more equitable income supply,
improved life expectancy, worse child humanity, and a much better transportation.

6) LEGAL FACTORS
o Factors include discrimination law, consumer law, antitrust law, employment law,
and health and safety law.
o These factors can affect how a company operates, its costs, and the demand for its
products.

 How does the law affect your work?

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INTELLECTUAL PROPERTY RIGHTS

1. What are the laws that form the legal framework in the textile industry
of intellectual property in Mauritius?

In Mauritius, the legal framework for IPR enforcement originally planned for the protection
of copyright, trademarks, patents, with the Patents Act 1875 Act 1868 Act marks and
copyright in 1956 being the older legislation.

SWOT ANALYSIS OF THE TEXTILE

INDUSTRY
SWOT analysis is an extremely useful tool for understanding and decision making for all
sorts of situations in business and organizations. It is a strategic planning method used to
evaluate the Strengths, Weaknesses, Opportunities and Threats complicated in a project or in
a business.

1) STRENGTH
 The quality or national of being strong in particular.
 The physical strength and energy: "the bike can help you build up your strength."

Raw material base

 Mauritius has high self-sufficiency in raw materials including natural fibers. The
cotton crop of Mauritius is the fifth in the world. Mauritius textile industry produces
and manages all types of fibers.

183
Labor

 The work reduction and strong entrepreneurial skills have always been the backbone
of the textile industry in Mauritius.

 Reduce the supply and ample work strengthens the industrial and agricultural sectors
of the country.

Flexibility

 The small size of the manufacturing sector is important in the industry allows greater
flexibility to serve smaller and specialized commands.

Rich heritage

 Social diversity and rich heritage of the country offers a good basis of inspiration for
the designers come up with new and different attractive designs that are appreciated
worldwide.

Internal Market

 Natural demand drivers, including rising incomes, increasing urbanization and the
growth of domestic demand driving the population purchase.
 The results of several units of additional production plants supply more and more
work.

2) WEAKNESS
 The state or condition of a lack of strength.

 A quality or function considered as a drawback or a default: "Strengths and

weaknesses of the product."

More dependence on cotton

184
  In the textile sector is heavily dependent on cotton production, low cotton will
deteriorate the textile industry

Spinning sector

 Spinning sector lacks innovation and it is necessary to introduce new technologies.

Weaving sector

 Mauritius has relatively less number of shuttle less loom.

Fabric Treatment

 The treatment is the weak link in the textile value chain in Mauritius, negatively
affecting its export competitiveness.

Poor Infrastructure

 The high energy costs and long delays erode export competitiveness of exports from
Mauritius through the textile chain island.

The low labor productivity

 Productivity levels for the manufacture of various articles of clothing are much lower
compared to Mauritius with its competitors.

Other weakness

 Indian textile industry is highly fragmented industry.

 Lack of technological development that affect productivity and other activities in the
value chain.
 Infrastructural bottlenecks and efficiency, such as the transaction time in ports and
transport time.

3) OPPORTUNITIES

 A regular of circumstances that makes it possible to do something

 A chance for employment or promotion

185
Growing industry

 growth with investment in an industry highly dependent on the economic health

 The global textile trade continues to grow at a rate of 8.2% to 13.2 to $ 15 billon
2010-2011.

Market contact through bilateral negotiation

 Trade developed between regional trading blocs because of bilateral agreements

between the participating countries.

Integration of information technology

 "Supply Chain Management" and "Information Technology" has a crucial role in the
manufacturing sector. Availability (Electronic Data Interchange) EDI makes
communication easy, fast, and transparent and reduce duplication.

Used in high-value items

 Mauritius has the potential to increase its UV radiation (Value Unit Director) by the
movement of the value chain for the production of value-added products and
producing products more technologically superior

Reduce the cost of doing business.

 China and India are much cheaper in labor, raw materials and utilities compared with
Pakistan. Rising inflation also increases the cost of production. We must control
these unnecessary costs if we are to survive in the middle of the two giants of the
textile sector in the world.

4) THREATS
 A statement of determined to inflict injury, damage, pain, or other hostile action on
someone in retribution for something done or not ..., "the family received death
threats"
 A threat of bodily harm, as may restrict the freedom of action of a person.

Life cycle of fashion

186
  Fashion changes every day these days. The media has so penetrated into our daily
lives as we adapt easily because he wants us. This helped shorten the life cycle of
fashion, thus increasing the risk of fashion.

The formation of trading blocs

 Training of trading blocs such as NAFTA, SAPTA, etc. has resulted in a change in
the scenario of world trade. Existence of bilateral agreements entail major drawback
for exports of Mauritius.

FIVE FORCE ANALYSIS OF THE

TEXTILE INDUSTRY

Porter five forces analysis

Model five forces is a tool that can be used to analyze the opportunities and competitive
advantages overall you, your organization, or your project. It consists of five forces that can
help in determining the competitive intensity and attractiveness of the potential within a
certain area. This can be developed to assist in the analysis of a particular project and
strategic opportunities for this project, as well as strategic opportunities, effectiveness and
profitability of the institution as a whole.

Within the typical five forces are determined by the following powers:

1. Competition

2. New entrants

3. End users / buyers

4. Suppliers

5. Alternatives

187
History

The five forces were Originally identified five forces and developed by Michael
Porter while working for the Harvard Business School and the Boston Consulting Group.
Both were looking for new and updated version to develop strategies in the area of
competitive advantage

Understanding tool:

Five forces analysis assumes that there are five important forces that determine
competitiveness in the business condition. These are:

Supplier Power:

Here you can evaluate how easy it is for suppliers to raise prices. Is the
motivation behind this by a number of suppliers of each key input, the uniqueness of the
product or service, power and control over you, the cost of switching from one to another,
and so on. And fewer supplier choices you have, the more you need to help suppliers, the
stronger your suppliers.

Buyer Power:

Here you have to ask yourself how easy it is for buyers to push prices down. Again,
this is driven by a figure of buyers and the importance of each individual buyer for your
business, and the cost to them of the shift from products and your services to those of
someone else, and so on. If you are dealing with a few, powerful buyers, then they are often
able to dictate terms to you.

Competitive rivalry:

What is important here is the number and capacity of your competitors. If you have
many competitors, and they provide products and services equally attractive, then most likely
will have little power in the situation, because the suppliers and the buyers will go elsewhere

188
if you do not get a good deal from you. On the other hand, if there is no one else that can do
what you do, then you can be a formidable force in often.

Threat of substitution:

This affected the ability of customers to find a different way to do what you do - for
example, if you provide a unique software product that automates the process of the task, and
people may be resolved by doing the process manually or by outsourcing.

The threat of new entry:

Power is also influenced by the ability of people to enter into your market. If it costs
little in time or money to enter the market and compete successfully, if there are rare
economies of scale in place, or if you have little protection technologies your home, and can
then entry of new competitors quickly your market and weaken your position.

Industry Profile of India perspective: -

About Industry

Textile and apparel industry is one of the largest and most prominent sectors of the
Indian economy in terms of output, foreign exchange earnings and job creation. Industry
Indian textile is a multi-fiber-based, using cotton, jute, wool, synthetic fibers.

Competitive advantage (of India)

• Considerable resources of untapped natural resources.

• accelerate the process providisation.

• Reform is not subject to tax and an independent judiciary.

• The ability to manufacture large and well-developed infrastructure and R & D services
market.

189
 • FDI will come in almost all sectors, including textiles.

• Private investment and give tax incentives to export and development activities.

• VAT Consolidated 1/April/2003.

• Strengthening legal protection for intellectual property rights.

Competition among competitors: -

And traditional cornerstone of the economy, the sector faces the end of a preferential
trade agreement European, has been ravaged by last year due to the global slowdown and
company executives feared a strong local currency may do more harm than that.

NEW ENTRANTS
Step 1: Insert your company in the Registrar of Companies

Step 2: Register your business activity in the Registrar of Companies. The registration
number will be issued a unique business company It will be common to all
communications with all relevant authorities.

Step 3: Record with the Board of Investment for a license the profession and take advantage
of the facilities and support services

THE BARGAINING POWER OF END USERS /

BUYERS
Melting point of the oldest civilizations in the world, Mauritius is a rare example of
peace and social unity in a multicultural society. Population boasts assets of European and
African continents, as well as from India and China. With such a global heritage, no wonder
its legendary hospitality. Mauritius is also a safe place to live, Mauritius being naturally
inclined well and peaceful in nature. All of Mauritius enjoy freedom of expression and
religion.

190
THE BARGAINING POWER OF SUPPLIERS
Export Processing Zone (EPZ) benefited greatly from trade arrangements and
protectionist policies of the European Commission and the United States. However, the
restrictions mandated by these commercial systems, strengthened under the GATT, restrict
future growth in the export sector. Mauritius, investors are fully aware of this and began to
diversify its activities and markets.

THE THREAT OF NEW ALTERNATIVES: -

Branded products

Mauritius manufactures and exports high quality products for the world's leading players in
the industry the fashion. Has established the country's position in the international market as a
supplier is liable of high quality garments and textile products in prices. Products competitive
being manufactured for export are varied and consist mainly of T-shirts, shirts, pants, denim,
pullovers, beachwear, lingerie, innerwear smooth, garments. Europe and children Sports
Today is our main market, which represents 74% of our exports, while the United States
stands AT18%. Some of the prestigious companies sourcing clothing from Mauritius include:
Armani, Asics, Burton, Calvin Klein, Jasper Conrad, Eddie Bauer, Abercrombie & Fitch,
Express, Galleries Lafayette, Guess, John Rocha, KOOKAI, Marks and Spencer, Marlboro,
and then, Silver rapid.

191
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