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PM Narendra Modi visited Cyprus on June 15, 2025, marking the third visit by an Indian PM after Atal Bihari Vajpayee in 2002. The trip focused on deepening economic ties, advancing the India–Middle East–Europe Corridor (IMEC), and reinforcing strategic cooperation amid the evolving Turkey–Pakistan–Azerbaijan axis.

Economic Interests in Cyprus

• Trade corridor gateway: Cyprus offers a strategic maritime and rail hub for India-Middle East-Europe Economic Corridor (IMEC), enhancing India–Europe trade logistics.
• FDI potential: Cyprus ranks among the top ten FDI investors in India, with $14 billion invested since 2000.
  Eg. Eurobank plans an office in Mumbai to boost financial flows.
• Shipping synergy: India–Cyprus cooperation in shipping, including recognition of the Indian Register of Shipping, enhances maritime collaboration.
  Eg. Over 14,500 Indian seafarers hold Cypriot-issued seaman’s books.
• Diaspora-led commerce: India’s diaspora in Limassol bolsters trade and investment in IT, tourism, and start-ups.
  Eg. The India–Greece–Cyprus Business Council was launched in Feb 2025.
• Energy and technology: Discussions included cooperation in renewables, energy corridors, and tech innovation.
• Bilateral trade expansion: Cyprus imported India’s pharmaceuticals, textiles, and machinery, worth US$137 million in 2023–24.
• Financial and digital connectivity: India and Cyprus signed an MoU between NSE Gift City and the Cyprus Stock Exchange to deepen capital market cooperation.
  Eg. Cyprus is exploring the adoption of India’s Unified Payments Interface (UPI) for cross-border digital payments.

Strategic Objectives

• Diplomatic messaging: Modi’s Cyprus visit signals a response to Turkiye’s support for Pakistan amid Operation Sindoor.
• Shared security stance: Cyprus supported India on Kashmir, terrorism, and India’s UNSC ambitions.
  Eg. Cyprus firmly condemned the Pahalgam attack at EU forums.
• Defence cooperation: MoUs on defence industry, maritime visits, and cybersecurity were signed.
• Naval collaboration: Plans include increased naval port calls and joint search-and-rescue operations.
• EU policy alignment: Cyprus will champion stronger India–EU ties during its 2026 EU Council presidency.
  Eg. Cyprus pledged to help deliver an India–EU trade deal in 2025.
• Counter-terrorism cooperation: Both countries prioritised dismantling terrorist infrastructure and safe havens through a joint declaration.
  Eg. The 2025 Bilateral Defence Cooperation strengthens collaboration against terrorism.

India’s expanded engagement with Cyprus advances both economic integration through IMEC and strategic depth amid geopolitical rivalries. Bilateral cooperation across trade, energy, maritime, and defence cements Cyprus as a Mediterranean hub, reinforcing India’s diplomatic and commercial foothold in Europe while countering adversarial coalitions.

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