PM Modi Unveils $175 Million Economic Package to Bolster India-Seychelles Ties

On February 8, 2026 a joint press conference between Prime Minister Narendra Modi and President Patrick Herminie was announced as a special USD 175 million financial package to Seychelles. 

This aid which includes USD 100million Line of Credit and USD 75 million grant focuses on key areas to promote sustainable development and the creation of jobs. 

The promise will be made in connection with the state visit of Seychelles President ( February 5-10) dedicated to 50 years of diplomatic relations.

What Led to the announcement?

The package was announced after bilateral negotiations in Hyderabad House which focused on the development partnership between India-Seychelles based on Seychelles priorities. 

The president of Herminie was on his inaugural visit to India in August 2025, with seven ministers, with the aim of improving the relationship through the new Joint Vision SESEL (Sustainability, Economic Growth, Security through Enhanced Linkages). 

PM Modi declared Seychelles a reliable partner and made aid consistent with common interests in the Indian Ocean Region.

What is this Fund Used For?

Funds are used to fund projects in social housing, e-mobility, vocational training, health infrastructure, defense and maritime security. 

Details are USD 125 million credit line on infrastructure, USD 50 million grants on capacity building, delivery of 1,000 tonnes of grains/lentils, provision of affordable medicines and digital public infrastructure such as payments. 

It is geared towards creating employment, particularly among the youth, and skills.

What are the Key Agreements Signed?

Seven MoUs touch on digital transformation (India sharing expertise), capacity building (training civil servants, training defense personnel cybersecurity, climate, MSMEs, renewables), and health. 

Seychelles is part of the Coalition of Disaster Resilient Infrastructure (CDRI) of India. Trade agreements increase collaboration in marine protection as well as economic connections.

The 50th anniversary of India-Seychelles is a relation that has India as one of the leading development partners. 

Some of the past aid is infrastructure such as the Supreme Court and National Assembly buildings. The promotion of maritime security is a measure to address challenges in the region, which makes SAGAR (Security and Growth for All in the Region) vision stronger. 

The two leaders were committed towards climate action and people-to-people connections.

The package strengthens the Indian presence in the Indian Ocean, which contributes to the small island insecurities of Seychelles to climatic changes and security risks. 

It enhances the strategic relationship in global changes, which leads to economic resilience and mutual gains such as tourism and fisheries trade.

The USD 175 million package by Modi is an illustration of India’s adherence to the policy of Neighborhood First and SAGAR which gives Seychelles the power to develop in specific ways. It focuses on sustainability, security, and skills, thereby enhancing long-term relationships, which enables mutual prosperity in the Indo-Pacific.


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