India, Mauritius seal USD 680 million economic package

Varanasi, Sep 11: Prime Minister Narendra Modi and Mauritian Prime Minister Dr. Navinchandra Ramgoolam on Thursday unveiled a sweeping special economic package worth nearly USD 680 million (MUR 30 billion) to strengthen infrastructure, healthcare, maritime security, and energy transition in Mauritius.

The announcement came on Thursday, immediately after a meeting between PM Modi and Dr. Ramgoolam, who, along with his wife, six cabinet ministers and a large contingent of officers and business leaders, is on a State Visit to India from 9–16 September 2025, his first overseas bilateral trip since assuming office earlier this year. His last visit to India was in May 2014, when he became the only non-SAARC leader invited to attend the swearing-in of Mr. Modi and his Council of Ministers.

Dr. Ramgoolam’s week-long programme highlights the depth of the relationship between the two countries. After meetings in New Delhi and a business event in Mumbai, he travelled to Varanasi, where PM  Modi hosted him in his parliamentary constituency.

From there, he will proceed to Ayodhya and Tirupati for spiritual visits. Welcoming him, PM. Modi described the presence of the Mauritian delegation in Kashi as “not just a formality but a spiritual union,” highlighting the centuries-old civilizational bonds between India and Mauritius. India and Mauritius share a close and special relationship rooted in historical, cultural, and people-to-people ties. As India’s key maritime neighbour in the Indian Ocean Region, Mauritius occupies an important place in New Delhi’s Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Region) and its Neighbourhood First Policy. Mauritius is also an active partner in advancing the concerns of the Global South. The current visit follows PM Modi’s trip to Mauritius in March 2025, when ties were upgraded to an “Enhanced Strategic Partnership”. Both sides said the ongoing exchanges reaffirm the enduring and family-like bonds that define bilateral relations.

CHAGOS: A DIPLOMATIC MILESTONE

PM Modi also congratulated Mauritius on securing sovereignty over the Chagos Archipelago, a long-disputed group of islands in the Indian Ocean. The islands, detached from Mauritius by Britain in 1965, were used to create the British Indian Ocean Territory (BIOT) and leased to the US for its Diego Garcia military base. Mauritius argued this was a violation of international law, and in 2019 the International Court of Justice ruled in its favour, urging Britain to end its control. A settlement reached in 2025 with London marked what PM Modi hailed as a “historic milestone for decolonisation and full recognition of Mauritius’ sovereignty.” India has consistently supported Mauritius in its claim, including by offering assistance in the development of the Chagos Marine Protected Area.

ECONOMIC PACKAGE HIGHLIGHTS

The USD 680 million package will cover healthcare, connectivity, port and airport development, and renewable energy projects. It includes a USD 25 million budgetary support grant this fiscal year.

GRANT-FUNDED PROJECTS (USD 215M)

• New 500-bed Sir Seewoo

sagur Ramgoolam

National Hospital.

• AYUSH Centre of

Excellence.

• Veterinary School and

Animal Hospital.

• Provision of helicopters

for emergency and

security operations.

GRANT-CUM-LOC PROJECTS (USD 440M)

• Completion of the ATC

Tower at SSR

International Airport.

• Development of the M4

Motorway.

• Construction of Ring

Road Phase II.

• Acquisition of modern

port equipment.

India will also partner in redeveloping Mauritian ports, supporting energy transition with a 17.5 MW floating solar plant at Tamarind Falls, and expanding security cooperation in the Chagos region. India reaffirmed its role as a “first responder and net security provider” in the Indian Ocean, pledging to continue equipping and training the Mauritius Coast Guard. Both sides concluded an agreement on hydrographic cooperation, covering joint surveys, navigation charts, and EEZ mapping for the next five years. PM Modi emphasised that the partnership is about “shared dreams and a shared destiny.”