External Affairs Minister Sushma Swaraj handed over the aircraft worthiness certificate, while Mos MEA Gen VK Singh handed over symbolic keys to the Seychelles President.
Later the Union Minister flagged off the Dornier aircraft.
Prime Minister Narendra Modi had on Monday gifted replica of the aircraft to the Seychelles President.
India has earlier gifted the Seychelles Coast Guard a fast track vessel, a Dornier aircraft, and two helicopters.
Calling it a historic day, the external affairs minister said that India is committed to support Seychelles to capacity building especially in the field of maritime security.
Describing the handing over of the Dornier aircraft by India as a milestone in Defence cooperation between the two countries, the President of Seychelles, Danny Faure thanked the people and government of India.