India’s strength increased in the Indian Ocean, strategic deal worth Rs 1250 crore with Seychelles

Knews Desk- India has finalized an important bilateral agreement with Seychelles, further strengthening its strategic position in the Indian Ocean region. An ‘Umbrella Line of Credit’ (LoC) worth Rs 1,250 crore (about $150 million) has been agreed between the two countries. This agreement is being considered very important in terms of India’s maritime security and regional cooperation policy.

This agreement is being seen as a major diplomatic achievement under India’s ‘SAGAR’ (Security and Growth for All in the Region) and ‘Neighborhood First’ policy. Seychelles is a strategically important island nation in the Indian Ocean, located close to major maritime trade routes. In such a situation, this partnership will strengthen both India’s maritime hold and sphere of influence. Under this ‘Umbrella Line of Credit’, India will provide financial assistance to Seychelles for various projects related to infrastructure, defence, health and socio-economic development. This assistance will not be limited to any one project, but can be used for development work in different areas. This entire system will be operated through the Export-Import Bank of India (EXIM Bank).

An important condition of the agreement is that a major part of the goods and services required for these projects will be sourced from India. This is likely to provide direct benefits to Indian companies, exporters and defense and infrastructure sectors. This step of India is very important in response to China’s increasing activities in the Indian Ocean and its ‘String of Pearls’ strategy. Increasing India’s presence in a country like Seychelles will give a new direction to maritime security, surveillance and mutual cooperation. This will help in controlling activities like piracy, illegal fishing and drug trafficking.

Military cooperation between India and Seychelles has already been strong, and this new deal will further strengthen it. Through this fund, Seychelles’ coastal security system and military structure will be modernized, which will further improve coordination between the navies of the two countries. Along with this agreement, digital cooperation has also been promoted. An agreement has been signed between National Payments Corporation of India (NPCI) and the Central Bank of Seychelles to implement the UPI system. This will strengthen the digital payments system in Seychelles and further expand India’s fintech reach internationally.

Apart from this, both the countries have also signed extradition treaty and agreements related to cooperation in space research. Seychelles has also sought assistance from India in setting up AI and Cyber ​​Security Center and Advanced Light Helicopter, on which India is showing a positive attitude. This agreement is being considered as the beginning of a new chapter in India-Seychelles relations. Experts believe that this partnership will play an important role in strengthening peace, stability and economic cooperation in the Indian Ocean.