India and Seychelles have taken a significant step toward strengthening bilateral cooperation with the signing of a $175 million special economic package, alongside multiple memorandums of understanding (MoUs), aimed at advancing collaboration across key development and security sectors. The agreements were formalised on February 9, 2026, during talks between Prime Minister Narendra Modi and Seychelles President Patrick Herminie.

The package and accompanying MoUs were signed at Hyderabad House in New Delhi in the presence of both leaders, underscoring the growing strategic importance of the India–Seychelles partnership in the Indian Ocean region.

Breakdown of the $175 Million Economic Package

The financial package is intended to support clearly defined projects spanning social infrastructure and strategic cooperation. Key focus areas include affordable housing, electric mobility, vocational education, healthcare development, defence cooperation, and maritime security.

Funds will be deployed through joint implementation mechanisms set up by the governments of India and Seychelles to ensure efficient execution and oversight of approved projects.

Key Sectors Covered Under the Agreement

• Social Housing: Initiatives aimed at improving access to affordable housing, particularly for economically vulnerable communities.
• E-Mobility: Development of electric vehicle infrastructure and related support services to promote sustainable transport.
• Vocational Training: Skill development programmes designed to enhance employment opportunities for youth.
• Healthcare Cooperation: Capacity building in medical services and healthcare infrastructure.
• Defence Collaboration: Enhanced cooperation through capacity building initiatives and joint defence exercises.
• Maritime Security: Measures focused on maritime surveillance, search and rescue operations, and counter-piracy efforts in the Indian Ocean region.

Importance of the Bilateral MoUs

Both leaders emphasised the deep historical and cultural ties between India and Seychelles. Prime Minister Modi highlighted the long-standing trade links and people-to-people exchanges between the two countries, while President Herminie acknowledged the important role played by the Indian diaspora in Seychelles’ economic development.

The newly signed MoUs are intended to convert this enduring partnership into tangible development outcomes while reinforcing regional security and cooperation.

Summary

India and Seychelles have signed a $175 million special economic package and multiple MoUs to expand cooperation in housing, healthcare, e-mobility, vocational training, defence, and maritime security. The agreements aim to translate long-standing bilateral ties into concrete development projects and strengthen strategic collaboration in the Indian Ocean region.

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