India-Seychelles economic ties gain momentum on green cooperation

As Prime Minister Narendra Modi prepares for his State Visit to Seychelles,June 27 to 29, 2026, the economic partnership between the two Indian Ocean neighbours is witnessing renewed momentum, with both countries expanding cooperation across trade, investment, connectivity, renewable energy and the blue economy.While bilateral trade remains moderate due to the absence of a direct shipping route, India and Seychelles have continued to strengthen commercial ties through growing investments, improved air connectivity and collaboration in sustainable development.
Trade, Investment and Connectivity Strengthen Economic Partnership
India remains one of Seychelles’ key trading partners, supplying essential goods including rice, processed food products, cement, textiles, cotton, vehicles, transport equipment, pharmaceuticals and medical instruments.Official data shows that bilateral trade reached USD 84.88 million in 2023-24, registering nearly 15 per cent growth compared with the previous year. India’s exports to Seychelles stood at USD 76.19 million, while imports from Seychelles were valued at USD 8.69 million.The trade relationship has maintained stability in the current financial year as well, with total bilateral trade between April 2024 and February 2025 reaching USD 72.92 million. During this period, India’s exports accounted for USD 68.64 million, while imports from Seychelles stood at USD 4.28 million.

#WATCH | Victoria-Mahe | Seychelles Chamber of Commerce & Industry's Secretary General, Iouana Pillay, says, "The visit of PM Modi to Seychelles, especially celebrating our 50th year of independence, is extremely important for Seychelles. We are very proud. This occassion is very… pic.twitter.com/jMYtgitU7u

— ANI (@ANI) June 26, 2026

According to sources,Indian companies have also expanded their presence in Seychelles across sectors such as banking, telecommunications and transport. Bank of Baroda has been operating its overseas branch in Victoria since 1978, supporting businesses and residents in the island nation.Bharti Airtel has invested over USD 25 million in Seychelles since entering the market in 1998, providing mobile and internet services. India’s role in Seychelles’ transport sector has also grown, with Tata Motors supplying a major share of the country’s public bus fleet, while Ashok Leyland has recently entered the market.Connectivity has emerged as an important driver of economic engagement. Following the 2014 bilateral agreement, Air Seychelles launched direct flights between Mahé and Mumbai. The connectivity network received a further boost in March 2025 when IndiGo started operating four direct flights every week between Mumbai and Mahé, supporting tourism, business travel and cultural exchanges.Financial cooperation between the two countries has also deepened through the Tax Information Exchange Agreement (TIEA) signed in 2015, aimed at enhancing transparency and strengthening economic cooperation.
Blue Economy and Renewable Energy Drive Future Cooperation
As maritime partners in the Indian Ocean region, India and Seychelles have identified the blue economy as a key area of collaboration. The Blue Economy Protocol signed during Prime Minister Modi’s 2015 visit to Seychelles provides a framework for cooperation in sustainable marine resource management, ocean-based economic activities and environmental protection.Both countries have continued to support each other at international platforms on climate action and sustainable development, reflecting their shared commitment towards environmental resilience.Renewable energy has emerged as another major pillar of the partnership. Seychelles became a founding member of the International Solar Alliance (ISA) after ratifying its Framework Agreement in 2017, strengthening cooperation in clean energy initiatives.
In October 2024, Seychelles commissioned a five-metric-tonne solar-powered cold storage facility on Praslin Island under an agreement signed with the ISA during COP27 in Egypt. The project aims to improve food preservation while promoting sustainable energy solutions.Further cooperation is planned through three additional renewable energy projects, including solar rooftop systems, solar pumps and solar chillers under the Quad Climate Initiative.India’s engagement with Seychelles increasingly reflects a broader partnership combining economic growth with sustainability and shared development priorities. From trade expansion and corporate investments to improved connectivity and clean energy cooperation, both countries are working towards a stronger and more resilient partnership in the Indian Ocean region.

(Business Correspondent)