Industry Minister Showkutally Soodhun said export flows overcame a more fragile than predicted economic recovery abroad to rise by about 6 percent last year to 40 billion rupees ($1.29 billion). A similar upward trend was expected in 2011, he said.

"Our aim is to increase our total exports from 40 billion rupees in 2011 to 50 billion rupees in 2013. We have developed a 3-year export development plan to help us attain our objective," he told the annual general assembly of the Mauritius Export Association (MEXA).

Textile groups dominate Mauritius' export businesses, accounting for 65 percent of the sector's total sales, supplying major European high street retailers including Next and Marks & Spencer in Britain, and Spain's Zara.

The worldwide economic slump has hit the island's clothing factories hard, forcing them to drop prices to cling on to market share and encourage demand. Two government stimulus packages since 2008 have targeted the sector.

Soodhun said the three-year plan included an injection of Rs.140 million this year to help exporters consolidate traditional markets and diversify into new products and markets.

"In particular, we are laying emphasis on the regional markets of SADC (Southern African Development Community) and COMESA (Common Market for Eastern and Southern Africa) and exploring emerging markets untapped until now," he said.

MEXA's outgoing chairman, Mukesh Gopal, said the increase in the key interest rate by 50 basis points earlier this week would undermine the ability of exporters to create new jobs and harm growth prospects.

"We hope that the Monetary Policy Committee will review its stand at the next meeting. It is also essential to implement an appropriate management of foreign exchange which will support enterprises resist the high (level) of global competitiveness," Gopal said.

Meanwhile, the head of the central bank said said further monetary policy actions will be required in coming months to haul Mauritius' year-on-year real interest rates into positive territory.

The Indian Ocean island hiked its benchmark lending rate by 50 basis points to 5.25 percent a few days ago in order to curb a faster than expected climb in the rate of inflation.

"More efforts would have to be deployed to normalize rates in the coming months. We need to stay ahead of the curve," Governor Rundheersing Bheenick told a banking forum late on Wednesday.

He gave no further details.

Mauritius' annual average rate of inflation has climbed to 3.6 percent from December's 2.9 percent, while the year-on-year rate sits at 6.8 percent.

The central bank's Monetary Policy Committee said the annual average rate would have tipped 8 percent by December if there had been no policy change.

"The message that I want to drive in is the critical importance at this juncture of policy coordination between the bank and the Treasury," Bheenick said.