Newsletter
You might not have heard much about Seychelles, but this tiny island nation is the smallest country in Africa and one of India's most strategically important partners in the Indian Ocean.
During PM Narendra Modi's visit, the two countries signed agreements spanning UPI, AI, space, defence and cyber security, while India also announced a ₹1,250 crore Line of Credit.
What's the big deal: India will extend a ₹1,250 crore Line of Credit to help Seychelles fund key infrastructure and development projects. The financing will be provided in Indian rupees and used for projects chosen by the Seychelles government.
Another major announcement was bringing India's UPI payment system to Seychelles. Once rolled out, locals, businesses and Indian tourists will be able to make seamless digital payments using the platform, marking another step in India's effort to export its digital public infrastructure globally.
The two countries also signed agreements on space cooperation, cyber security, healthcare, agriculture, maritime security, legal cooperation and capacity building. They also signed an extradition treaty to strengthen cooperation against cross-border crime.
India also extended fresh support by donating 500 metric tonnes of rice, 8,500 metric tonnes of cement, six ambulances, a fast patrol vessel, 10 utility vehicles and five patrol boats. The two leaders also virtually launched a new technical education centre being built with Indian support.
Why this matters: Seychelles sits in the middle of the Indian Ocean, making it strategically important for global shipping routes and regional security. For India, strengthening ties helps improve maritime security, counter piracy, expand digital cooperation and reinforce its presence in a region where global powers are increasingly competing for influence.
The visit also focused on emerging sectors like artificial intelligence, cyber security and space technology, with Seychelles seeking India's support to establish AI and cyber security centres and strengthen its defence capabilities.
