India's offshore pivot: the implications of a tougher approach towards Mauritius

A relatively unknown yet significant relationship in the global political economy - Mauritius serving as an offshore financial centre to India - has recently been challenged by the Indian government. This development raises questions about the extent to which the global offshore system has changed. The article presents the argument that India is taking more concerted steps on global taxation reform than most economies, bolstered by a strengthened capital position, a heightened international focus on tax justice and new elites certain that foreign investment will flow directly into India. There are two broader lessons. First, while India's actions against unfair tax competition are laudable, there are still contradictions, highlighted by Indian multinational offshore usage. Second, other developing countries may be unable or unwilling to follow India's harder line on the offshore. The larger point to be drawn from this case is that the offshore economy is noticeably weakened but not exhausted.