India and Cyprus are strengthening their bilateral relations, focusing on various sectors including defense, trade, and economic cooperation .
- Indian Prime Minister Narendra Modi visited Cyprus on June 15, 2025, to enhance bilateral ties . During his visit, he received the Grand Cross of the Order of Makarios III, Cyprus’s highest civilian honor, which he dedicated to the friendship between the two nations . This visit marks the first by an Indian premier in over two decades .
- Both nations have agreed to boost defense and maritime cooperation, including more frequent Indian naval visits to Cypriot ports and exploring joint training and search-and-rescue operations . They also plan to establish an information-sharing framework to counter terrorism .
- India and Cyprus are working towards enhancing trade and investment . Cyprus is seen as a crucial gateway for India to access European markets . India is aiming to finalize a free trade agreement with the European Union by the end of 2025, with Cyprus pledging support as it assumes the EU presidency in early 2026 . The India-Middle East-Europe Economic Corridor (IMEC) is also a key initiative to foster trade, energy, and digital connectivity, positioning Cyprus as a vital hub .
- An Action Plan is being prepared to guide bilateral relations for the next five years . Both countries are committed to deepening their partnership, focusing on security, trade, and cultural exchanges .
- Trade relations between India and Cyprus are strengthening, with both nations actively seeking to enhance economic cooperation and investment .
Trade Volume and Key Products:
- In 2015, bilateral trade between Cyprus and India reached EUR 76.5 million .
- Cyprus’s imports from India amounted to EUR 64.5 million, while its exports to India were EUR 11.1 million .
- A significant portion of their trade involves steel and iron .
Investment and Financial Aspects:
- Between April 2000 and September 2015, Cyprus was the eighth-largest foreign direct investor in India, with a cumulative investment of $8.328 billion . A large share of these investments went into the construction and real estate sectors .
- The Double Taxation Avoidance Agreement between Cyprus and India was revised in 2016 to facilitate smoother financial transactions .
- During recent discussions, a collaboration between the Cyprus Stock Exchange and India’s NSE in GIFT City was established to further enhance economic ties .
Strategic Importance and Future Prospects:
- Cyprus is recognized as a vital “gateway into Europe” for Indian firms looking to expand westward .
- India aims to finalize a free trade agreement with the European Union by the end of 2025, and Cyprus, which will hold the EU presidency in the first half of 2026, has pledged its support for this initiative .
- The India-Middle East-Europe Economic Corridor (IMEC) is a key focus, positioning Cyprus as a crucial hub for trade, energy, and digital connectivity between India and Europe . This initiative is seen as a counter to China’s Belt and Road Initiative .
- Discussions between Indian Prime Minister Narendra Modi and Cypriot leaders have emphasized innovation, energy, and technology as key areas for future collaboration .
- There are also plans to introduce UPI services in Cyprus for cross-border transactions through a memorandum of understanding between the National Payments Corporation of India (NPCI) and Eurobank of Cyprus . for world news click www.eminentnews.com
