Prime Minister Narendra Modi made a two-day visit to Cyprus on 15–16 June, which was the first visit of an Indian Prime Minister in two decades. The tour was part of PM Modi’s visit to three countries, including Canada (for the G7 conference) and Croatia. This journey is taking place at a time when tension in West Asia is at its peak. Israel, Iran and the airspace of Lebanon were closed for some time, causing the Prime Minister’s aircraft to reach Cyprus via Arabian Sea, Somalia, Ethiopia, Eritrea and Egypt.
This journey of Cyprus is not symbolic, but strategic. India is trying to renew its relationship in the Mediterranean and Europe and Cyprus is playing an important role in this strategy. The journey took place after ‘Operation Sindoor’, which is being considered as a direct message from India for Türkiye. Türkiye has been standing with Pakistan for a long time and has increased its role in anti -India activities in recent years. Drone attacks from Türkiye had raised India’s concern, after which India started strengthening their relations with Cyprus and Greece.
Decades of decades old relationship between India and Cyprus
Cyprus, located in the Mediterranean, was liberated from the British Raj in 1960. But soon tension started between Cyprasis of Greek and Turkish origin. A decade later, in 1974, with the support of Greece’s military dictatorship (jute), a coup was done in Cyprus, aimed at integrating Cyprus with Greece. In response, Turkey launched a military attack on Cyprus citing the protecting the Turkish Cyprops.
Although the legitimate government in Nicosia was later restored, the Turkish army remained in the northeastern part of the island. Later that region declared itself ‘Turkish Republic Northern Cyprus’- a political unit which is only recognized by Ankara.
India has been continuously supporting the United Nations resolutions on this issue and the solution under international law. India has played a big role in the United Nations Peace Defense Force (UNFICYP) in Cyprus and three Indian military officers have been the head of the UN Mission.
Supporters of India’s permanent membership in UNSC
Cyprus has strongly supported India’s international ambitions. The island nation has publicly supported the proposal to give permanent membership to India in the expansion of the United Nations Security Council. In addition, Cyprus has also supported the Indo-US civil nuclear deal, especially in global regulatory institutions such as the Atomic Suppliers Group (NSG) and the International Atomic Energy Agency (IAEA).
Economic relations of India-sprus getting stronger
Many important economic agreements were signed in the presence of Prime Minister Modi and Cyprus President Nicos Christodolidase. Emphasizing the possibility of commercial engagement in the financial services sector, the two leaders welcomed the signing of a memorandum between the NSE International Exchange Gift City, Gujarat and the Cyprus Stock Exchange. NIPL (NPCI International Payments Limited) and Eurobank Cyprus agreed to start UPI for cross -border payment between the two countries. This will benefit tourists and businesses.
The Prime Minister also welcomed the inauguration of the Indo-Gris-Spirus (IGC) Trade and Investment Council, which will promote tripartite cooperation in areas such as shipping, logistics, renewable energy, civil aviation and digital services. The Prime Minister welcomed the fact that many Indian companies see Cyprus as the entrance of Europe and the center of IT services, financial management and tourism.
Trade and economic cooperation between the two countries will get a boost
Cyprus is preparing to head the European Union Council next year. In such a situation, the two leaders confirmed the commitment to further strengthen the India-European Union Strategic Partnership. He hoped to fulfill the India-European Union Free Trade Agreement by the end of the year, which will also promote trade and economic cooperation between the two countries. The Prime Minister also said that trade round table discussion has given practical suggestions which will become the basis of structured economic roadmap. This will ensure long -term cooperation in trade, innovation and strategic fields.
Cyprus is becoming a center of investment and trade in Europe for India. In FY 2023-24, trade between India and Cyprus was $ 136.96 million. Medicines, ceramics, steel, textiles and machinery are exported from India, while Cyprus comes from Cyprus, medicines, beverages and other products come to India.
Cyprus’s important role for India in Europe
Cyprus is an important link in India’s’ India-Mide East-Europe Economic Corridor (IMEC) scheme, which connects India to Middle East and Europe. Apart from this, Cyprus also has marine energy resources, where India wants to cooperate. India wants to strengthen its presence in the region due to sea disputes with Türkiye. Cyprus will preside over the European Union in 2026, which can help India to get a strong partner in Europe for the India-Europe Free Trade Agreement (FTA).
The defense cooperation between the two countries has been continuously moving forward since the signing of a memorandum (MoU) on defense cooperation in December 2022. Taking this link forward, the two countries finalized the bilateral defense cooperation program (BDCP) for 2025 in Nicosia. Currently, the Indian Defense Advisor (Defense Shrket) for Cyprus is stationed at the Indian Embassy in Cairo and is handling the responsibility of coordination.
In December 2022, a defense cooperation agreement was signed between India and signs, which has now been expanded till 2025. Cyprus has more than 11,000 Indian citizens, who are working in areas like IT, shipping, agriculture and education. India and Cyprus together are planning to cooperate in startup ecosystem. Prime Minister Modi’s visit has given a clear message to Europe that India wants a strategic partnership, especially when it is trying to become a representative of Global South.