During the last three decades, Mauritius has moved from a monocrop economy based on sugar to a newly industrialized country. The economy grew at an annual average rate of 5% leading to a trebling of per capita income. The key ingredients for this success are the preferential market access for sugar and industrial products to Europe through the Lomé Convention, business friendly environment and political stability.However, now with deep changes occurring both on the international scene and on the domestic front, Mauritius needs to revisit its earlier approach to economic management..

 The emergence of WTO the phasing out of the Multi Fibre Agreement in 2005 is putting at stakes preferential market access. The creeping rigidity in the labour market is exerting much upwards pressure on wages not followed by sufficient increase in productivity.The four major pillars of the Mauritian economy namely, agriculture, manufacturing, tourism and international financial services are being consolidated with a view to enable Mauritius to cope with the new economic era

Presently Mauritius is at an industrial crossroads. Since 1989 the Government has established a Stock Exchange the main objective of which is to finance the increased investment needs of the economy. The offshore banking business aims at making Mauritius an offshore financial centre.As a major tourist destination Mauritius has air connections with most of the major European, African and Asian cities as well as Australia and other islands of the Indian Ocean. Its national carrier, Air Mauritius, services 28 different destinations.

The agricultural sector was severely hit by the drought and recorded a negative growth rate of 26.4% in 1999. The industrial sector which accounts for about one third of GDP achieved a commendable average growth rate of 5% in the last five years. This is mainly due to the good performance of the EPZ sector. The services sector which contributes to some 58.5% to GDP grew at annual rate of 6%. It should be noted that public and social services account to some 16.5% of GDP.

The EPZ sector which spearheaded industrial development in Mauritius in the 1980s has sustained its growth momentum between 1995 and 2001 with an average rate of 6.2%. FPZ is the major contributor to employment in Mauritius absorbing 17% of the labour force. Employment rose by 13%