Prime Minister Modi’s recent visit to Cyprus, the first by an Indian PM in over two decades, highlights the growing strategic importance of the island nation for India.
- Prime Minister Narendra Modi has been awarded the Grand Cross of the Order of Makarios III of Cyprus, the country’s highest civilian honour.
Key Outcomes of PM’s Historic Cyprus Visit
- Bilateral Defence Cooperation Programme (BDCP) 2025: Includes joint naval exercises in the Eastern Mediterranean, intelligence sharing on terrorism/maritime threats, and training for Cypriot military personnel.
- Real-time counter-terrorism mechanisms: Establishment of information exchange between security agencies to combat cross-border terrorism.
- Indian naval liaison office in Limassol: Enhances India’s maritime presence in the Mediterranean.
- India-Middle East-Europe Economic Corridor (IMEC): Cyprus confirmed as a critical Mediterranean gateway for the trade corridor, countering China’s Belt and Road Initiative.
- UPI integration in Cyprus: MoU signed between NPCI (India) and Eurobank Cyprus to enable cross-border digital payments, boosting fintech collaboration.
- GIFT City-Cyprus Stock Exchange linkage: First European exchange to integrate with India’s GIFT City, facilitating cross-border investments.
- $2 billion investment pledge: Indian funding for Cyprus’s renewable energy and IT sectors.
- EU-India bridge: Cyprus’s 2026 EU Council Presidency to advocate for India-EU Free Trade Agreement (FTA) and IMEC.
- Countering Turkey-Pakistan Axis: Visit to the UN-controlled buffer zone (Green Line) sent a strong message against Turkish expansionism
- Cultural & Technological Collaboration: India-Cyprus-Greece Trilateral Council was launched to boost cooperation in shipping, logistics, and digital services
Historical and Diplomatic Ties
- Cyprus and India share warm diplomatic relations dating back to Cyprus’ independence from Britain in 1960.
- India has consistently supported Cyprus’ sovereignty and territorial integrity amid its long-standing conflict with Turkey, which occupies Northern Cyprus.
- UN and Multilateral Support: Cyprus backs India’s bid for a permanent seat in the UN Security Council and supported the India-US nuclear deal at the Nuclear Suppliers Group (NSG).
- Counter-Terrorism Cooperation: Both nations have collaborated on global counter-terrorism efforts, with Cyprus endorsing India’s stance on cross-border terrorism.
Order of Makarios III
- The Order of Makarios III is the highest order of knighthood awarded by the Republic of Cyprus.
- It is named after its first President, Archbishop Makarios III.
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Strategic Importance of Cyprus
- Cyprus’ rivalry with Turkey adds a geopolitical dimension to India’s engagement.
- Turkey’s deepening ties with Pakistan, including military support, have strained India-Turkey relations.
- India’s Signal to Turkey: By strengthening ties with Cyprus, India sends a strategic message to Turkey, reinforcing its support for Cyprus’ sovereignty while countering Turkey-Pakistan collaboration.
Economic and Connectivity Opportunities
- Cyprus plays a crucial role in India’s trade and connectivity ambitions, particularly in the India-Middle East-Europe Economic Corridor (IMEC).
- IMEC & Trade Hub: Cyprus’ location in the Mediterranean makes it a key transit point for India-EU trade under IMEC.
- EU Presidency in 2026: Cyprus will hold the EU Council Presidency in 2026, offering India an opportunity to strengthen economic and political ties with Europe.
About Cyprus
- Location: Cyprus is an island country located in the eastern Mediterranean Sea, south of Turkey and west of Syria and Lebanon.
 Although geographically part of Asia, it is politically and culturally aligned with Europe.
- Capital: Nicosia
- EU Member: Joined the European Union (EU) in 2004
- Historical Background: Cyprus gained independence from British rule in 1960, but tensions between its Greek Cypriot majority (80%) and Turkish Cypriot minority (18%) led to conflict.
- Division of the Island:
- In 1974, Turkey invaded the northern part after a coup by Greek Cypriots seeking union with Greece.
- The island is now divided:
- Republic of Cyprus (internationally recognized, EU member)
- Turkish Republic of Northern Cyprus (recognized only by Turkey)
- Cyprus’ Geopolitical Significance:
- Strategic Location: Acts as a bridge between Europe, Asia, and the Middle East.
- EU & NATO Relations: Cyprus is part of the EU but not NATO, complicating regional security dynamics.
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Conclusion
PM Modi’s visit underscores Cyprus’ significance as a diplomatic ally, economic partner, and strategic counterbalance to Turkey’s pro-Pakistan stance. As India seeks to expand its influence in Europe and the Mediterranean, Cyprus emerges as a crucial partner in trade, security, and geopolitics.
16 Jun 2025
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