PM Modi Unveils USD 175 Million Economic Package to Strengthen India–Seychelles Relations

On February 8, 2026, Prime Minister Narendra Modi announced a USD 175 million special economic assistance package for Seychelles during a joint press conference with Seychelles President Patrick Herminie in New Delhi. The announcement came during President Herminie’s state visit to India (February 5–10, 2026), which also marked 50 years of diplomatic relations between the two nations.

This major financial commitment underlines India’s growing role as a trusted development partner in the Indian Ocean Region (IOR) and reinforces New Delhi’s strategic vision of SAGAR (Security and Growth for All in the Region) and the Neighborhood First Policy.

Background: Why Was the Package Announced?

The economic package was announced following bilateral talks at Hyderabad House, where both leaders reviewed the India–Seychelles development partnership and aligned it with Seychelles’ national priorities.

President Patrick Herminie, who earlier paid his inaugural visit to India in August 2025 along with a high-level delegation of ministers, has been keen on elevating bilateral ties through the Joint Vision SESEL:

• Sustainability

• Economic Growth

• Security

• Enhanced

• Linkages

Prime Minister Modi described Seychelles as a reliable and trusted partner, emphasizing India’s long-term commitment to peace, stability, and prosperity in the Indian Ocean.

Breakdown of the USD 175 Million Assistance Package

The announced package consists of grants, lines of credit, and humanitarian support, aimed at promoting inclusive growth and job creation, especially for youth.

Financial Components

• USD 100 million Line of Credit (LoC) for infrastructure development

• USD 75 million Grant for capacity building and social projects

Additional Support

• 1,000 tonnes of food grains and lentils

• Supply of affordable Indian medicines

• Support for digital public infrastructure, including digital payments systems

Key Sectors Supported by the Fund

The assistance will be utilized across multiple high-impact sectors aligned with sustainable development goals:

• Social housing projects

• Health infrastructure and medical services

• E-mobility and green transport

• Vocational training and skill development

• Defense and maritime security cooperation

• Digital governance and public service delivery

The focus is on employment generation, youth skill enhancement, and long-term economic resilience.

Major Agreements and MoUs Signed

During the visit, seven Memorandums of Understanding (MoUs) were signed, covering a wide range of cooperation areas:

Key Areas of Cooperation

• Digital transformation (India sharing best practices and technology)

• Capacity building for civil servants and defense personnel

• Cybersecurity and climate resilience

• MSMEs and renewable energy

• Health and medical collaboration

Notably, Seychelles reaffirmed its participation in India-led initiatives such as the Coalition for Disaster Resilient Infrastructure (CDRI).

Trade-related agreements also aim to enhance cooperation in:

• Marine conservation

• Fisheries

• Tourism and blue economy

India–Seychelles: 50 Years of Development Partnership

India has been one of Seychelles’ leading development partners for decades. Some landmark Indian-supported projects include:

• Supreme Court Building of Seychelles

• National Assembly Complex

• Maritime surveillance and coastal security assistance

India’s support in maritime security is particularly significant given emerging challenges such as piracy, climate threats, and geopolitical competition in the Indian Ocean.

Strategic and Regional Significance

The USD 175 million package strengthens India’s strategic footprint in the Indo-Pacific while addressing the unique vulnerabilities of a small island nation like Seychelles, including:

• Climate change risks

• Energy and food security challenges

• Maritime and regional security concerns

It also enhances people-to-people ties, boosts tourism and fisheries trade, and promotes mutual economic gains.

Conclusion: A Partnership for Sustainable Growth

Prime Minister Modi’s USD 175 million economic package is a clear demonstration of India’s commitment to SAGAR, Neighborhood First, and inclusive development in the Indian Ocean Region. By focusing on sustainability, security, digital transformation, and skills, the initiative empowers Seychelles to chart its own development path while deepening long-term strategic ties with India.

As global dynamics evolve, the strengthened India–Seychelles partnership stands as a model of mutual trust, shared prosperity, and regional stability in the Indo-Pacific.