Chennai: Mauritius Prime Minister Sir Anerood Jugnauth Saturday said Indian investors should take advantage of the liberal trade facilities of his island nation as a springboard for south and east African markets and use them as a gateway to European and American markets.

"Our private sector is dynamic and my government promises to ensure an investment- friendly environment conducive to business," Jugnauth said at a meeting with Indian business leaders in Chennai. The meeting was organized by the Associated Chamber of Commerce and Industry of India (Assocham).

"We have a sound economic policy and my government will facilitate rapid economic development," he said.

Indian investors were welcome to exploit the opportunity in Mauritius, Jugnauth said. "We have low corporate taxes, duty free dividends and full repatriation of profit," he said, adding, "We are simplifying procedures and have set up a board of investment which will provide a single window facility. We will also provide duty exemption for raw material imports."

Mauritius is trying to woo Indian investment in new spinning and weaving plants, jewelry making units, the pharmaceutical industry, light and bulbs, electrical goods manufacturing, and printing units.

Jugnauth also promised special status to Indian software companies setting up production units in Mauritius.

Speaking at the meeting, Assocham president Shekhar Bajaj said Mauritius' achievements were remarkable. The country had a six percent growth rate, with foreign investments in the banking sector alone reaching over $1 billion. It was a nation that had the highest per capita income among African nations, Bajaj noted.

But Bajaj said Jugnauth should encourage an "open sky policy" in Mauritius, pointing out that Indians wanting to visit the country have trouble getting tickets due to the limited number of flights from India. That was affecting tourism between the countries, Bajaj said.

Unless something was done to increase the flight frequency to the island nation, the tourism industry would not be able to invest in Mauritius in a big way, he said.

Jugnauth arrived in India January 15, and wrapped up the last leg of his tour with a two-day visit to Chennai beginning Friday evening. Jugnauth and his team also visited the TIDEL Park, Asia's biggest software technology park in Chennai.

India Abroad News service