India has pledged $680 million in economic assistance to Mauritius, reinforcing the strong relationship between the two nations. The announcement was made during Mauritian Prime Minister Navinchandra Ramgoolam's state visit to India, where he met with Prime Minister Narendra Modi. Modi emphasized the shared priority of a free, open, secure, and stable Indian Ocean for both countries.

The economic package comprises both grants and lines of credit, directed towards bolstering Mauritius's healthcare, infrastructure, and maritime security. A portion of the aid will support the development and surveillance of the marine protected area of the Chagos Archipelago. This area, one of the world's largest, is larger than the U.S. state of California, and where commercial fishing is prohibited. India has historically supported Mauritius's claims over the Chagos Islands.

The financial commitment includes approximately $215 million in direct grants and $440 million in a grant-cum-line of credit. These funds will support several key projects, including the construction of a 500-bed Sir Seewoosagur Ramgoolam National Hospital, an AYUSH Centre of Excellence, a veterinary school and animal hospital, and the establishment of the country's first Jan Aushadhi Kendra to improve access to affordable medicines.

In terms of infrastructure, the assistance will facilitate road expansion, the completion of a new Air Traffic Control (ATC) tower at Sir Seewoosagur Ramgoolam International Airport, the development of Ring Road Phase-II, and the modernization of Mauritius's port facilities. Cooperation will also extend to clean energy, with plans to fund 100 electric buses and a 17.5 MW floating solar power plant at Tamarind Falls. Furthermore, India will provide $25 million as budgetary support to Port Louis in the current financial year.

On the strategic front, India is committed to its role as a "first responder and net security provider" in the Indian Ocean. To this end, India will assist in strengthening Mauritius's Exclusive Economic Zone (EEZ), including refitting Coast Guard assets. A new hydrographic cooperation agreement was signed, covering joint surveys, navigation charts, and data sharing over the next five years. India will also help with the development and surveillance of the Chagos Marine Protected Area.

Both leaders agreed to cooperate on the redevelopment of Mauritius's port facilities. Modi hailed the conclusion of the Chagos Agreement as a "historic milestone" in the decolonization process, reaffirming India's support for Mauritius's sovereignty. Modi emphasized the deep cultural connection between the two nations, likening Mauritius's Indian heritage to the "eternal flow of the Ganga". He characterized the ties with Port Louis as a "family bond" rather than just a partnership.

This economic package will also assist Mauritius in implementing at least 10 projects, including strengthening critical infrastructure such as ports, airports and roads, and building new schools and hospitals. Seven agreements were signed to enhance cooperation in education, power, hydrography, and space research. India will also assist Mauritius in maritime security and will train 120 Coast Guard officers in India.

The initiative underscores India's growing influence in the Indian Ocean region and its commitment to supporting its allies. Modi stated that India remains fully committed to strengthening the security of Mauritius's exclusive economic zone and that both sides will work towards enabling bilateral trade in local currencies. He described the package as "an investment in our shared future, not assistance".