New Delhi, India – India has pledged a special economic package worth $175 million to Seychelles, Indian Prime Minister Narendra Modi announced on Monday during high-level talks with visiting Seychelles President Patrick Herminie in New Delhi.
The announcement came as part of a comprehensive and productive bilateral dialogue held at Hyderabad House, where the two leaders adopted a Joint Vision Statement on Sustainability, Economic Growth and Security through Enhanced Linkages. President Herminie is on an official state visit to India from February 5 to 10, 2026.
According to the joint statement, both sides agreed to “intensify political and socio-economic engagements at leadership, Ministerial and Senior Official levels” and to “deepen cooperation and intensify parliamentary exchanges between the two countries, including the sharing of best practices on parliamentary proceedings and capacity building.”
The $175 million package comprises:
$125 million in rupee-denominated line of credit (blended financial assistance)
$50 million in grant assistance
These funds will support a wide range of priority areas, including development cooperation projects, capacity building for civilians and defence officials, maritime security initiatives, and other mutually agreed sectors.
Addressing the media after the talks, Prime Minister Modi underscored the strategic importance of the partnership, stating: “Together, we will shape not just bilateral cooperation, but a shared future for the Indian Ocean.”
The two leaders witnessed the signing of several Memoranda of Understanding (MoUs) covering cooperation in diverse fields such as capacity building, maritime domain awareness, renewable energy, agriculture, fisheries, health, education, and digital connectivity. While specific details of each MoU were not immediately released, they are expected to further strengthen institutional linkages and practical collaboration.
India and Seychelles established diplomatic relations in 1976. Over the years, the relationship has grown steadily, with India emerging as a key development partner for the Indian Ocean island nation. Bilateral trade has shown positive momentum, though it remains modest in scale. In 2024, Seychelles imported goods and services worth approximately $91.73 million from India, while exports to India stood at around $2.46 million.
The partnership holds special strategic significance given Seychelles’ location in the western Indian Ocean—a critical maritime chokepoint for global trade and energy flows. Cooperation in maritime security, blue economy initiatives, and disaster response has long been a cornerstone of ties between New Delhi and Victoria.
President Herminie’s visit is seen as an opportunity to elevate the relationship to a new level, especially in the context of India’s SAGAR (Security and Growth for All in the Region) vision and its broader Indo-Pacific engagement strategy. For Seychelles, the economic package and expanded cooperation offer vital support for infrastructure development, climate resilience, sustainable tourism, and defence capacity building—priorities for the small island developing state facing challenges from climate change, economic diversification, and regional security dynamics.
Both sides reaffirmed their commitment to multilateralism, including cooperation within frameworks such as the Indian Ocean Rim Association (IORA), the Indian Ocean Commission (IOC), and the United Nations. They also expressed support for a free, open, inclusive, and rules-based Indo-Pacific.
The visit includes a ceremonial reception, delegation-level talks, and cultural engagements, underscoring the warmth and mutual respect that characterise India-Seychelles relations.
With the $175 million package now committed and multiple MoUs signed, the two countries aim to translate political goodwill into tangible outcomes that benefit both nations and contribute to stability and prosperity in the Indian Ocean region.
