India has reached an agreement with Mauritius to establish a satellite station in the Chagos archipelago, a move seen as enhancing its strategic presence in the Indian Ocean, reported Fort Lauderdale's Maritime Executive.

Indian media said the station will track satellites and serve as a regional monitoring asset, a term often associated with signals intelligence. The exact location is unclear but is expected to be near the Diego Garcia US-UK base.

The facility is likely to mirror India's installation on Agalega, another Mauritian island, which India has effectively annexed. Mauritius relies heavily on Indian support and functions as an offshore financial centre for India.

During the signing, Prime Minister Narendra Modi reaffirmed India's support for Chagos decolonisation, stating that India and Mauritius "are two nations, our dreams and destiny are one."

The agreement, made during Mauritius Prime Minister Navinchandra Ramgoolam's visit to New Delhi in September, also allows Indian naval vessels to conduct hydrographic surveys in the archipelago. These surveys are key for Arihant-class nuclear submarines to operate in the region.

India currently operates INS Arihant (S2), INS Arighaat (S3), and INS Aridhaman (S4), with a fourth vessel launched last year. The deal includes refitting a Mauritius Coast Guard ship for patrols and US$680 million in aid, part of which is earmarked for developing the Chagos Marine Protected Area.

Mauritius and the UK signed a sovereignty handover agreement on May 25, 2025, though ratification is pending. The arrangement allows continued US use of Diego Garcia under a lease-back model after the UK exits the British Indian Ocean Territory.

UK Attorney General Lord Hermer and National Security Adviser Jonathan Powell, key figures in the handover deal, face scrutiny after espionage charges against two Britons were dropped. Former US Secretary of State Mike Pompeo criticised Mr Powell, warning of Chinese influence via Mauritius. UK opposition parties have pledged to reverse the deal if elected.