India-Cyprus cooperation has 'immense potential for growth': PM Modi

Terming Cyprus a "reliable partner" for India, Prime Minister Narendra Modi on Sunday called for strengthening bilateral cooperation, which has "immense potential for growth".

Modi, who arrived in Nicosia on the first leg of his three-nation tour, made the remarks while attending a business roundtable along with Cypriot President Nikos Christodoulides.

Addressing business leaders, Modi highlighted the "immense potential for growth" in bilateral ties.

Cyprus has been a "reliable partner to India for a long time now," he said.

In a post on X after the meeting, he said, "Boosting business linkages! President Nikos Christodoulides and I interacted with leading CEOs in order to add vigour to commercial linkages between India and Cyprus. Sectors like innovation, energy, technology and more offer immense potential. I also talked about India’s reform trajectory in the last decade," he added.

‘Gateway to Europe’

At the event, Modi said, "After 23 years, an Indian prime minister has come to Cyprus and the first programme was the business roundtable. This reflects how vital economic stakeholders are to India-Cyprus ties."

He added that many Indian companies see the country as a "gateway to Europe." He also talked about India's growth story and said that the country has focussed equally on "trust of doing business" as on "ease of doing business".

"Further cementing investment, technology & business linkages," Ministry of External Affairs spokesperson Randhir Jaiswal said in a post on X, attaching pictures from the event.

Also Read: PM Modi to embark on 5-day foreign tour; to attend G-7 Summit in Canada

He added that the conference saw participation by leading business leaders of Cyprus and Indian companies.

"The leaders called for strengthening economic ties in the fields of trade, investment, financial services, fintech, start-up, innovation, AI, IT, logistics, defence, connectivity, shipping, and mobility," he said.

Addressing the event, Modi called Cyprus a "famous tourist destination", and added that India, too, is focussing on destination development and management, and so, "close collaboration between our tour operators will be a 'win-win'".

He added that many other sectors also have the potential for such collaborations.

MoUs signed

According to officials, during the prime minister's visit, a Memorandum of Understanding (MoU) was signed between the National Payments Corporation of India (NPCI) and Eurobank of Cyprus to introduce Unified Payments Interface (UPI) services in Cyprus for cross-border transactions.

In his address, Modi said that due to UPI, 50 per cent of the world's digital transactions today take place in India.

Also Read: Play, swim, eat: Europe's largest casino resort opens in Cyprus

According to officials, NSE International Exchange Gift City also signed an MoU with the Cyprus Stock Exchange to enable cross-border flows. This is the first of its kind arrangement between Europe and Gift City India and will benefit investors in GIFT City, Cyprus, and Europe, they said.

‘Newer areas of engagement’

In a video message on X ahead of the roundtable, MEA spokesperson Jaiswal said that at the forum, "ideas about how to strengthen India-Cyprus business partnership in newer areas of engagement such as startup, innovation, digital payments, shipping, shipbuilding, ports, etc. will be identified, talked about, and discussed."

Modi's two-day visit to Cyprus is the first by an Indian prime minister in over two decades. Upon his arrival, he was welcomed at the Larnaca International Airport by Christodoulides in a special gesture.

Also Read: India, Cyprus ink defence cooperation agreement as Jaishankar visits Nicosia

During the visit, the two leaders will also hold talks to strengthen bilateral ties.

Modi's visit will "reaffirm the shared commitment of the two countries to deepen bilateral ties and strengthen India's engagement with the Mediterranean region and the European Union," according to a statement by the MEA.

Cyprus’s importance

PM Modi choosing Cyprus as his first foreign visit after Operation Sindoor is of some significance given the fact that its neighbour Turkey supported Pakistan during the recent conflict.

Turkey had invaded the island of Cyprus in 1974 and occupied parts of its northern region, and the two nations have been engaged in territorial disputes since then. Cyprus has been a consistent supporter of India’s stance on Kashmir, UN Security Council reforms, and cross-border terrorism.

Cyprus will be holding the rotating presidency of the European Union next year, and Modi’s visit will help strengthen ties between India and the EU. The official talks on Monday (June 16) will have the India-Middle East-Europe Economic Corridor (IMEC) on the agenda. Cyprus’s strategic location and maritime connectivity make it a potential hub in the IMEC project.

Also Read: Why India is reaching out to South Caucasus and Mediterranean region

From Cyprus, Modi will head to Kananaskis in Canada to participate in the G7 Summit at the invitation of Canadian Prime Minister Mark Carney.

Following the G7 Summit, Modi will visit Croatia and hold meetings with President Zoran Milanovic and Prime Minister Andrej Plenkovic.

Bilateral trade between India and Cyprus has remained "steady amidst fluctuations" over recent years, and was USD 136.96 million for April 2023-March 2024, according to the MEA.

(With inputs from agencies)