India Announces USD 175 Million Economic Package to Seychelles

$125 million: Rupee-denominated Line of Credit.

$50 million: Grant assistance.

• 1,000 MT of grains and lentils

Modi invited to Seychelles’ 50th Independence Day as guest of honour

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New Delhi: Prime Minister Narendra Modi on Monday announced a special economic package of $175 million for Seychelles following talks with Seychelles President Patrick Herminie at Hyderabad House in New Delhi.

The package includes blended financial assistance of $125 million through a rupee-denominated Line of Credit and $50 million in grant assistance. It will support development cooperation projects, capacity building for civilians and defence officials, maritime security, and food security through the supply of 1,000 metric tonnes of grains and lentils.

The two leaders also adopted a Joint Vision for Sustainability, Economic Growth and Security through Enhanced Linkages (SESEL), described as a roadmap to advance bilateral cooperation across sectors. On defence cooperation, the Joint Vision noted that a strong India-Seychelles partnership in maritime security and defence would reinforce regional stability and reaffirmed commitment to a free, open and rules-based Indian Ocean Region.

Modi was invited by President Herminie to attend Seychelles’ 50th Independence Day celebrations in June as Guest of Honour.

At the talks, the two sides agreed to strengthen defence and security ties, people-to-people exchanges, and cooperation in sectors including health, trade, renewable energy, digital services, tourism, education and training of civil servants. Fourteen outcomes were agreed upon, including seven agreements covering pharmaceuticals and health, meteorology, culture, information technology, ocean information services, civil services training and food security.

Seven announcements were also made, including the gifting of 10 utility vehicles and five Laser Radial class boats with spares to the Seychelles Defence Force, refit of patrol vessel PS Zoroaster for the Seychelles Coast Guard on a gratis basis, establishment of a Seychelles Hydrographic Unit with Indian assistance, and gifting of 10 ambulances.

India also agreed to streamline access to affordable medicines through collaboration under the Jan Aushadhi initiative, support the recruitment and deputation of medical professionals, assist in the construction of a new hospital, provide medical equipment, and extend technical assistance in managing Seychelles’ power grid.

In his media remarks, Modi said the India-Seychelles partnership was entering a new phase and described Seychelles as an integral part of India’s MAHASAGAR vision. He congratulated President Herminie on his election and noted that the visit coincided with the 50th anniversary of Seychelles’ independence and diplomatic relations between the two countries.

On defence cooperation, the Prime Minister said maritime security remained a key pillar of the partnership and welcomed Seychelles as a full member of the Colombo Security Conclave. He also highlighted cooperation in the Blue Economy, marine research, capacity building and data sharing.

The Joint Vision document said both sides would work closely to counter maritime challenges including piracy, narcotics smuggling, human trafficking, illegal fishing and transnational crime through enhanced maritime domain awareness, information sharing and coordinated operations.

President Herminie, according to the document, expressed appreciation for India’s support in maritime surveillance, hydrographic surveys, exercises and capacity building for the Seychelles Defence Forces.

Modi said both countries would explore new opportunities in economic cooperation, including trade in local currencies, fintech and digital solutions. He noted that memoranda of understanding were being signed on digital transformation and training of Seychelles civil servants under the Indian Technical and Economic Cooperation programme.

He also highlighted cooperation in health, renewable energy, climate resilience and sustainable development, and emphasised the importance of people-to-people ties, including tourism, education, culture and youth exchanges.

President Herminie called on Indian companies to view Seychelles as an investment hub, particularly in affordable housing, digital technology and artificial intelligence, financial services, blue economy, tourism and fisheries. Both leaders acknowledged that increased direct flights had led to a rise in Indian tourists, strengthening the resilience of Seychelles’ tourism sector.