India–Seychelles Relations: Strategic Importance, Challenges & Way Forward | UPSC Notes

Context

Prime Minister Shri Narendra Modi attended the 50th Anniversary celebrations of the Independence of Seychelles as the Guest of Honour.

Why is Seychelles Strategically Important for India?

• Net Security Provider in the IOR: Seychelles strengthens India’s role as a net security provider by facilitating sustained maritime engagement in the Indian Ocean Region.
  • g., The two countries institutionalised defence ties through the 2003 MoU on Defence Cooperation and conduct the biennial LAMITYE military exercise since 2001.
• Countering China’s Strategic Expansion: Seychelles is central to India’s efforts to balance China’s growing influence across the Indian Ocean.
  • g., India’s SAGAR doctrine, the proposed Assumption Island Agreement (2015), and the $100 million Line of Credit for maritime security reflect this strategic priority.
• Blue Economy Partnership: Seychelles is a key partner in India’s vision for sustainable ocean governance and maritime resource development.
  • g., The 2015 Blue Economy Protocol and cooperation in hydrography, fisheries, marine research, and renewable energy have expanded bilateral engagement.
• Diaspora and Cultural Linkages: A vibrant Indian-origin community reinforces India’s cultural influence and people-to-people ties.
  • g., Nearly 10,000 Persons of Indian Origin—around 11% of Seychelles’ population—play a dominant role in trade, construction, and retail, supported by regular Cultural Exchange Programmes.
• Economic and Connectivity Hub: Seychelles serves as India’s gateway for trade, investment, and connectivity with the western Indian Ocean.
  • g., Air Seychelles-Air India code-sharing, Bank of Baroda’s presence since 1978, and investments by Airtel and Tata have strengthened economic ties.

What Factors Limit the Full Potential of India–Seychelles Relations?

• China’s Expanding Strategic Footprint: Growing Chinese investments and diplomatic engagement in Seychelles create strategic competition for India in the western Indian Ocean.
  • g., China’s broader Maritime Silk Road strategy and expanding presence across the Indian Ocean have intensified India’s security concerns.
• Trade Imbalance: Bilateral trade remains heavily skewed in India’s favour, limiting the economic depth of the partnership.
  • g., India’s exports to Seychelles consistently exceed imports by nearly 8–10 times, with exports reaching $76.19 million against imports of just $8.69 million in 2023–24.
• Implementation Delays in Development Projects: Bureaucratic procedures, capacity constraints, and political changes can slow the execution of Indian-assisted projects.
  • g., Several infrastructure and development initiatives funded like assumption Island Joint Naval Base Project have witnessed delays in implementation.
• Climate Change Vulnerability: Climate-induced risks demand greater financial and technological cooperation, stretching the capacities of both partners. As a Small Island Developing State (SIDS), Seychelles faces rising sea levels, coastal erosion, and extreme weather events.
• Maritime Security Challenges: Persistent non-traditional security threats require sustained operational coordination and resource commitment. Piracy, drug trafficking, arms smuggling, and Illegal, Unreported and Unregulated (IUU) fishing continue to threaten maritime security in the western Indian Ocean.

What Measures Can Deepen India–Seychelles Strategic Partnership?

• Deepen Maritime Security Cooperation: Strengthen joint surveillance, capacity building, and operational coordination to secure the western Indian Ocean.
  • g., Leverage Seychelles’ membership in the Colombo Security Conclave (CSC), expand integration with the Information Fusion Centre–Indian Ocean Region (IFC-IOR), and conduct regular hydrographic surveys and EEZ patrols.
• Strengthen Climate and Blue Economy Cooperation: Make climate resilience and sustainable ocean governance the cornerstone of bilateral engagement.
  • g., Implement the Blue Economy Protocol through joint fisheries management, marine conservation, blue carbon projects, and renewable energy initiatives under the International Solar Alliance (ISA).
• Export Digital Public Infrastructure (DPI): Position India as Seychelles’ trusted digital transformation partner.
  • g., Extend India Stack solutions, digital payments (UPI), e-governance platforms, and cybersecurity cooperation to enhance digital resilience.
• Diversify Trade and Investment: Broaden economic engagement beyond traditional sectors to create balanced and sustainable growth. Promote partnerships in pharmaceuticals, tourism, fintech, fisheries, renewable energy, and MSMEs while improving air connectivity and business linkages.
• Enhance People-to-People Relations: Strengthen long-term goodwill through education, healthcare, and cultural exchanges. Expand ITEC and ICCR scholarships, promote medical tourism, and deepen collaboration in marine sciences, tourism management, and emerging technologies.

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