Mauritius has offered India two of its islands in exchange for keeping a tax treaty with India, Times of India reported on Friday.
The Mauritian Foreign Affairs and Trade Minister Arvin Boolell said India could use the North and South Agalega Islands, located 1,100 km from Mauritius, for tourism, or to establish a strategic presence in the northern Indian Ocean, the paper said.
North Agalega has an airstrip.
Times of India first reported preliminary discussions between the two nations over the islands, which are closer to India than Mauritius, in 2006.
Mauritius signed a double-taxation avoidance treaty with India in 1983.
