PM Narendra Modi visited Cyprus on June 15, 2025, marking the third visit by an Indian PM after Atal Bihari Vajpayee in 2002.

• This was PM’s first foreign tour post-Operation Sindoor, amidst heightened tensions in the Middle East and shifting global dynamics.

About Cyprus

• Cyprus is an island country in the eastern Mediterranean Sea, south of Turkey and west of Syria and Lebanon.
• It is the third largest and third most populous island in the Mediterranean after Sicily and Sardinia.
• The island has been divided since 1974, when Turkey invaded the north:
  • The Republic of Cyprus governs the southern part and is internationally recognized.
  • The Turkish Republic of Northern Cyprus (TRNC) is recognized only by Turkey.
  • Modi’s visit to the Green Line, the demilitarised buffer zone between Cyprus and the Turkish-occupied Northern Cyprus, was a symbolic act of solidarity with the former.

Significance of the Mediterranean Sea and Cyprus

• The visit aligns with India’s broader Mediterranean strategy, evident from the Raisina MED held in France.
  • Raisina Middle East (often referred as Raisina MED) is a regional spinoff of India’s flagship Raisina Dialogue, organized by the Observer Research Foundation (ORF) in partnership with the Indian Ministry of External Affairs (MEA) and Middle Eastern partners.
• Cyprus, at the crossroads of Europe, North Africa, and the Middle East, is key to the India-Middle East-Europe Economic Corridor (IMEC).
  • The India-Middle East-Europe Economic Corridor (IMEC) is a strategic transport and connectivity initiative launched at the G20 Summit 2023. It aims to link India with Europe via the Middle East through:
    • East Corridor: India to the Gulf by sea
    • North Corridor: Gulf to Europe via rail and sea (through UAE, Saudi Arabia, Jordan, Israel, Europe)
  • Key Players: India, UAE, Saudi Arabia, EU, US, France, Germany, Italy

India and Cyprus Strategic Engagement

• Counter-Terrorism Cooperation: The joint declaration prioritised dismantling terrorist infrastructure and safe havens.
• Condemnation of Terrorism: Cyprus strongly condemned the Pahalgam terrorist attack, aligning with India on security concerns.
• Geopolitical Alignment: India and Cyprus support each other on core sovereignty issues, with Cyprus backing India on Kashmir and India supporting Cyprus on Northern Cyprus. 
  • Both nations oppose the Turkey-Pakistan-Azerbaijan axis and share concerns over regional stability.
• Defence Cooperation: The two countries are strengthening defence ties through the 2022 MoU and the 2025 Bilateral Defence Cooperation Programme.
• Economic Synergies: Cyprus is seen as a strategic gateway to Europe and a key node in the India-Middle East-Europe Economic Corridor (IMEC). 
  • A new India-Greece-Cyprus (IGC) Business and Investment Council has been launched to accelerate economic cooperation.
  • Cyprus, despite its small population (1.3 million), ranks among the top 10 FDI sources into India, due to its investor-friendly tax regime.
  • The India-Cyprus CEO Forum was held in Limassol, promoting sectors such as: Civil aviation, shipbuilding, startups, infrastructure, and technology.
  • Bilateral trade in 2023–2024 stood at $136.96 million.
• Financial and Digital Connectivity: India and Cyprus have signed an MoU between NSE Gift City and the Cyprus Stock Exchange to deepen capital market cooperation. 
  • Cyprus is also exploring the adoption of India’s UPI system for cross-border digital payments.
• People-to-People Relations: Prime Minister Modi interacted with the Indian diaspora in Cyprus, which numbers around 11,000, and discussed plans for direct air connectivity and enhanced tourism.
• Leveraging EU Ties: Cyprus’s upcoming EU Council Presidency in 2026 offers India an opportunity to advance the stalled India-EU Free Trade Agreement, with Cyprus indicating strong support for its early conclusion.
• Energy Cooperation: Both countries aim to enhance renewable energy cooperation, with Cyprus exploring Eastern Mediterranean gas and India seeking energy diversification.

Conclusion

India and Cyprus are formulating a five-year roadmap to advance economic and geopolitical synergy. This partnership aims to deepen cooperation in trade, security, energy, and connectivity, marking a fresh chapter in Indo-Cypriot relations.

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