New Delhi: India and Seychelles have agreed on a broad-based roadmap to expand economic, strategic and development cooperation, with New Delhi announcing a $175 million special economic package that blends a rupee-denominated line of credit and grant assistance for projects ranging from infrastructure and capacity building to maritime security.
The announcement came after Prime Minister Narendra Modi held talks with Seychelles President Patrick Herminie during the latter’s state visit to India, where both sides adopted a Joint Vision for Sustainability, Economic Growth and Security through Enhanced Linkages (SESEL), marking a fresh phase in bilateral ties. The visit also coincides with the 50th anniversary of Seychelles’ independence and five decades of diplomatic relations between the two countries.
What’s in the package
Of the $175 million, $125 million will be extended as a rupee-denominated line of credit, while $50 million will be provided as grant assistance. The funds will be used for development cooperation projects, capacity building of civilian and defence officials, and strengthening maritime security capabilities.
For New Delhi, the move fits into its broader MAHASAGAR vision for the Indian Ocean region, aimed at boosting security and growth through regional partnerships. For Seychelles, a small island developing state, the package offers fiscal headroom to invest in infrastructure, health, digital governance and climate resilience.
Digital, health and essentials in focus
A key pillar of the agreement is digital public infrastructure (DPI). India will support Seychelles in building digital governance systems, including digital payments, drawing on its own large-scale digitalisation experience.
On health, India announced the donation of 10 ambulances and agreed to cooperate on building a new hospital, streamlining access to affordable medicines through recognition of the Indian Pharmacopoeia, and facilitating the deployment of Indian medical professionals. The two sides also agreed to institutionalise mechanisms to procure cost-effective food and essential commodities from India, alongside a donation of 1,000 metric tonnes of grains to bolster Seychelles’ food security.
Green push and climate resilience
Renewable energy and climate action featured prominently in the talks. India will extend technical assistance for power grid management and support Seychelles’ transition towards green mobility and clean energy solutions. The two countries also agreed to work on multi-hazard early warning systems and deepen cooperation on climate resilience—an area of growing importance for island nations facing rising climate risks.
Trade, tourism and connectivity
With direct flights already boosting tourist flows from India, both sides said they would explore expanding air connectivity further. Seychelles urged Indian companies to view the island nation as an investment hub, particularly in affordable housing, digital tech and AI, financial services, blue economy, tourism and fisheries.
While bilateral trade remains modest, officials on both sides underlined the need to “unlock the full potential” of economic ties, suggesting scope for Indian firms to play a larger role in Seychelles’ growth story.
Maritime security remains central
Maritime security and defence cooperation continue to anchor the partnership. The two leaders reiterated their commitment to a free, open and rules-based Indian Ocean region, and agreed to step up cooperation on maritime surveillance, hydrography, capacity building and provision of naval and air assets.
Seychelles will also establish a Seychelles Hydrographic Unit with Indian assistance, and both sides plan to hold the next Joint Commission Meeting on hydrography in early 2026.