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.