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India Deepens Ties With Mauritius Amid Chagos Dispute

A $680 million package, strategic outposts, and diplomatic maneuvering signal India’s rising influence in the Indian Ocean as sovereignty debates and global rivalries intensify.

7 min read

On September 11, 2025, the city of Varanasi played host to a meeting that would reverberate far beyond the banks of the Ganges. Indian Prime Minister Narendra Modi welcomed his Mauritian counterpart, Navinchandra Ramgoolam, for what at first glance seemed a routine diplomatic encounter. Yet, as the details emerged, it became clear this was no ordinary gesture of goodwill between two friendly nations. Instead, it marked a calculated step in a high-stakes contest for influence and security in the Indian Ocean—a region now central to global geopolitics.

According to The Times of India, the centrepiece of the summit was India’s announcement of a comprehensive economic package for Mauritius, valued at $680 million. This package included a variety of projects: redevelopment of the port in Port Louis, expansion of highways and ring roads, enhancement of healthcare infrastructure, and, crucially, the development and surveillance of the Chagos Marine Protected Area. Of that sum, $25 million was earmarked as direct budgetary assistance, while the remainder would be delivered through a blend of grants and lines of credit.

But as Bedanga Chutia, a commentator on global affairs, noted in The Sentinel Assam, this was far more than benevolent aid. The agreements signed—ranging from expanded space surveillance links and naval cooperation to the acceleration of joint development on Agalega Island—signaled a clear intent: to cement India’s role as the region’s principal security provider and to counterbalance China’s growing presence in the Indian Ocean. "This package is not assistance. It is an investment in our shared future," Modi declared after the meeting, emphasizing that Mauritius was not just a partner but “family” for India.

Mauritius, a tiny island nation in the southwestern Indian Ocean, might seem insignificant on a world map. Yet, as Chutia pointed out, its location grants it immense leverage. The country straddles vital sea lanes connecting Africa, Asia, and the Middle East—routes that carry nearly 80 percent of the world’s seaborne oil trade. To its north lies Diego Garcia, a linchpin of Anglo-American military power, from which U.S. bombers have launched missions into the Middle East and nuclear submarines continue to patrol the Indo-Pacific. To its west and east stretch the strategic ambitions of both African and Asian powers. In this context, Mauritius is anything but marginal.

For India, the calculus is straightforward. China’s Belt and Road Initiative has left its mark across the region, from the naval base in Djibouti to investments in the Maldives, Seychelles, and East Africa—what many analysts dub Beijing’s “string of pearls.” By deepening its partnership with Mauritius, India aims to untie those pearls, substituting Chinese loans and infrastructure with its own blend of security, development, and cultural kinship. The Agalega project, which involves lengthening an airstrip and building port facilities, is set to transform the island into a permanent Indian outpost. Enhanced maritime domain awareness through satellite cooperation further positions India as the first responder to everything from piracy to humanitarian crises across a vast swath of ocean.

Yet, hovering over these developments is the unresolved question of Chagos. Legally part of Mauritius, the Chagos Archipelago was separated by Britain in 1965 and leased to the United States for the Diego Garcia military base. In 2019, the International Court of Justice advised that Britain’s continued administration of Chagos was unlawful, and the UN General Assembly overwhelmingly supported Mauritius’s sovereignty. India has backed Port Louis’s claim, but as Chutia observed, it must tread carefully: Diego Garcia is indispensable to the U.S. Indo-Pacific strategy, and any move that threatens American access could strain the burgeoning India-U.S. partnership.

Prime Minister Ramgoolam was effusive in his gratitude for Indian support. "We want to visit the Chagos Islands, including Diego Garcia, to plant our flag. The British offered us a vessel, but we said we preferred one from India because, symbolically, it would be more meaningful," he stated, according to The Times of India. Modi, for his part, congratulated Ramgoolam on the Chagos Agreement, calling it a historic milestone for Mauritius’s sovereignty, and reaffirmed India’s commitment to decolonization and full recognition of Mauritius’s territorial rights.

The agreements signed in Varanasi included a five-year cooperation plan in hydrography, encompassing joint surveys, navigation charts, and the collection of hydrographic data for Mauritius’s now-expanded Exclusive Economic Zone (EEZ). With the recent treaty with the UK establishing Mauritian sovereignty over the Chagos archipelago, the EEZ has grown significantly, bringing new responsibilities—and opportunities—for Port Louis. As India’s Foreign Secretary Vikram Misri explained, "It has many more responsibilities now. It needs maritime resources, and to be able to fully develop and exploit those resources, it will need assistance, and India is a preferred partner in providing that assistance."

India’s commitment extends to the refitting of the Mauritius Coast Guard ship in Indian shipyards and the training of Mauritian officers in India. These initiatives, Modi said, are part of a broader vision for a “free, open, secure, stable, and prosperous Indian Ocean.” The two countries had already upgraded their relationship to an enhanced strategic partnership during Modi’s visit to Mauritius in March 2025, and the new agreements only deepen that bond.

But not everyone is applauding the recent flurry of deals. According to GB News, the UK’s decision to move forward with the Chagos sovereignty transfer has sparked controversy at home. On September 13, 2025, a Tory MP accused the Labour government of rigging the debate over the Chagos surrender by "smuggling in a 'killer' clause," branding the move "appalling" and "no democracy." Nigel Farage also weighed in as the bill passed its second reading, reflecting the ongoing tensions within British politics over the fate of Chagos and the future of the Diego Garcia base.

The implications of India’s expanded presence in Mauritius ripple outward. For the United States, it is both a reassurance—since India shares Washington’s concerns about China’s encroachment—and a risk, as a more assertive Mauritian campaign over Chagos could complicate American basing arrangements. China, meanwhile, finds its ambitions checked by India’s special relationship with Port Louis, making it harder to extend its influence in this critical region. For Britain, the diplomatic bandwidth is stretched thin, with the country increasingly isolated over its continued hold on the Chagos lease.

Regionally, the Western Indian Ocean is hardly a haven of stability. Madagascar’s political upheavals, Mozambique’s insurgencies, and the fragility of island states like Comoros all present risks that could test India’s resolve and readiness. Within Mauritius itself, some voices warn against the dangers of militarization and the potential erosion of sovereignty as Agalega is transformed into a strategic outpost.

Yet, a larger pattern is unmistakable. India is assembling a triangular network of strategic footholds: Andaman and Nicobar in the east, Lakshadweep in the west, and Agalega in the southwest. This arc of surveillance and power projection marks a profound shift in India’s strategic imagination—from a focus on continental frontiers to a bold new maritime doctrine. As Chutia observed, "India’s outreach is not philanthropy; it is a strategic gambit, leveraging development, sovereignty, and security in a complex chessboard of maritime power."

What began as a seemingly routine diplomatic package now stands as a testament to the shifting tides of global power. In the contest for mastery of the Indian Ocean, small islands like Mauritius have become the hinges of history, shaping the destiny of great powers and the architecture of the twenty-first-century world order.

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