India and Mauritius have upgraded their ties, say leaders of both countries — a move analysts say is aimed at increasing New Delhi’s influence in the Indian Ocean as it seeks to counter China’s expanding footprint in the region.

The announcement of upgraded ties came during a two-day visit by Indian Prime Minister Narendra Modi to Mauritius, an island nation that sits along vital seaways in the western Indian Ocean.

Modi, who was chief guest at Mauritius’s National Day celebrations on Wednesday, said that the countries had elevated ties to the status of “enhanced strategic partnership.”

Following talks with Mauritius Prime Minister Navinchandra Ramgoolam, both leaders also reaffirmed their commitment to a "free, safe, secure and open Indian Ocean.”

Mauritius conferred the country’s highest civilian honor on Modi, and the prime ministers signed eight pacts to boost cooperation in several sectors including maritime security.

Modi announced that New Delhi would invest about $11 million in several community development projects and that India will cooperate in building a new parliament for Mauritius, calling it a gift “from the mother of democracy.”

China trade with Mauritius on rise

While India has long enjoyed good relations with Mauritius, where 70% of the population is of Indian origin, analysts said Modi’s visit came amid a recognition that India needs to step up its engagement with a country that is called the gateway to the Western Indian Ocean and Africa, and where Beijing’s presence has grown.

“China’s rise in the island has been quite phenomenal and it is now one of the most important economic players in Mauritius,” according to Harsh Pant, the vice president of studies at the Observer Research Foundation in New Delhi. “So, to offset that, it is necessary for India to have constant engagement with Mauritius and help them build capacities in areas such as health, education, and maritime capabilities to demonstrate that it can assist in meeting such challenges."

In 2019, China signed a free trade agreement with Mauritius that went into effect in 2021. A page for Mauritius on China’s Foreign Ministry website that outlines relations states that the two have a strategic partnership. Bilateral trade between the two countries hit $1.1 billion, a 10.1% increase from the previous year, according to the website.

As the region becomes a hotspot for geopolitical competition, India and China have stepped up efforts to build ties with Indian Ocean countries.

Underlining India’s naval cooperation with Mauritius, an Indian navy contingent participated in the National Day parade and an Indian warship — the INS Imphal, a stealth guided-missile destroyer — paid a visit to the capital, Port Louis.

Last year, India helped Mauritius build an airstrip and a jetty in Agalega — two tiny islands covering 25 square kilometers that are located north of the main island. Although Mauritius has said that the facilities are not for military use, they give India a foothold to monitor traffic in the western Indian Ocean, say analysts.

“India’s construction of logistics infrastructure on Agalega Island underlines both Mauritius’s enduring geopolitical significance in the Indian Ocean and Delhi’s growing maritime stakes in regional security,” political analyst C. Raja Mohan wrote in the Indian Express newspaper.

India backs Chagos handover

Indian officials have also said that New Delhi would support a planned deal between Britain and Mauritius to hand over control of the Chagos Islands to Mauritius that is being finalized. One of the islands on the archipelago, Diego Garcia, has been home to a joint U.K.-U.S. military base since the 1970s. British media have reported that Britain will cede sovereignty of the Chagos Islands and lease back Diego Garcia from Mauritius to allow the military base to remain.

“We support Mauritius in its stance on its sovereignty over Chagos, and this is obviously in keeping with our long-standing position with regard to decolonization and support for sovereignty and territorial integrity of other countries,” Indian foreign secretary Vikram Misri said Saturday while announcing plans that Modi will soon also visit the Maldives.

Although officials have made no comment, analysts point out that India backs the continuation of the military base in Diego Garcia. Last month, U.S. President Donald Trump said he was “inclined” to go along with the deal between Mauritius and Britain over the future of the base.

“From New Delhi’s standpoint, it helps if there is some American presence there because it balances out the strategic realities of the region,” said Pant.