The Indian High Commissioner to Cyprus, Shri Manish, discusses the expanding business relationship between Nicosia and New Delhi, which includes cooperation in the tourism, technology and financial sectors.
In a recent interview with GOLD magazine, Manish, among other things, talks about what is being done to encourage Indian companies to invest in Cyprus and shares his vision for India–Cyprus business relations over the next 5-10 years.
Given Cyprus’ location at the crossroads of Europe, the Middle East and Africa, and India’s growing global footprint, how can the two countries leverage their geographic advantages?
Cyprus’ unique location and India’s expanding global footprint create a natural synergy for deeper economic cooperation. As a member of the European Union, Cyprus provides Indian companies with privileged access to the vast EU market, while also serving as a convenient node for the Middle East and North Africa. This makes Cyprus an increasingly attractive base for Indian firms seeking to leverage EU regulatory frameworks, trade agreements and geographic proximity to key markets.
The forthcoming India–Middle East–Europe Economic Corridor (IMEC) further enhances this potential, with Cyprus positioning itself logistically, digitally and economically as an important player in the broader Eastern Mediterranean region, particularly as it prepares to assume the EU Presidency in the first half of 2026.
In addition, Cyprus offers a stable and transparent financial and regulatory environment that Indian firms find highly compatible for cross-border operations. The Double Taxation Avoidance Agreement (DTAA) between India and Cyprus reduces tax risks, while Cyprus’ recognition as one of only three non-FATF countries categorised by India as a Category-1 Foreign Portfolio Investment (FPI) jurisdiction further underlines its credibility as a financial bridge.
In today’s uncertain geopolitical landscape, this stability allows Indian businesses to diversify supply chains, especially in areas such as renewable energy, maritime and digital services, ensuring shorter transit times, reduced risks of disruption and greater overall resilience.
What are the main sectors driving bilateral trade today?
Bilateral trade between India and Cyprus is witnessing steady growth and increasing diversification. In 2023–24, trade stood at approximately US$137 million, marking a positive trajectory in recent years. India’s exports to Cyprus form the bulk of this trade, with a strong presence in chemicals, pharmaceuticals, iron and steel products, ceramics and electrical machinery. Organic chemicals alone accounted for over US$36 million in exports in 2024, reflecting the strong reputation of Indian chemical exports in global markets. This basket underlines India’s strength in the industrial and chemical sectors, both of which remain critical to Cyprus’ own economic development.
From the Cypriot side, exports to India, though smaller in value, include items such as copper, aluminium, iron and steel and machinery. But the trade relationship is not only about goods; it is increasingly about services, where Cyprus holds a comparative advantage. With its established maritime and shipping services sector, Cyprus manages one of the world’s largest merchant fleets and has a growing global logistics footprint. Shipping cooperation is likely to become a more important driver of bilateral engagement.
Another promising area is tourism and travel services. With over 4 million international tourists visiting Cyprus annually and India’s rapidly growing outbound travel market, synergies are beginning to emerge. Companies like Thomas Cook India, which recently established operations in Cyprus, exemplify how tourism services can serve as a pillar for bilateral investment and trade. Looking ahead, the digital economy is emerging as a new driver.
Indian IT firms are entering Cyprus, not only to provide services but also to position themselves strategically within the EU digital single market. The recent arrival of LTIMindtree in Nicosia with an advanced digital and AI centre is an important milestone in this regard.
In sum, while traditional trade drivers – chemicals, pharmaceuticals, metals and machinery – continue to underpin the relationship, the growth story is now shifting toward services, shipping, tourism and digital technologies. This diversification signals that bilateral trade is moving beyond a narrow focus and developing into a multi-sectoral partnership aligned with the strategic strengths of both countries.
IT, pharmaceuticals, shipping, renewable energy: which of these sectors offers the most opportunities in Cyprus?
All four sectors offer substantial opportunities for India-Cyprus cooperation, though some are more immediate while others are poised for medium-term growth. In the digital and technology space, the potential is especially strong. Several Indian firms are already establishing a presence in Cyprus, such as Bcentrique.ai, a technology firm deeply invested in Artificial Intelligence. And this is just the beginning. In the near future, I am confident that many more Indian-owned and Indian-led enterprises will consider Cyprus as a platform to access the European market.
Additionally, new ventures are being actively discussed under the India–Cyprus–Greece (IGC) Business & Investment Council, signalling that IT and digital services will be a leading pillar of bilateral engagement. Pharmaceuticals remain another area of strength, given India’s global reputation as the “pharmacy of the world.”
While current exports to Cyprus are modest, the island’s EU membership and high regulatory standards make it an attractive base for distribution and EU-compliant logistics hubs, enabling Indian companies to serve the wider European market. Shipping and maritime services, long a hallmark of the Cypriot economy, also present natural complementarities. With Cyprus’ strong shipping registry and maritime services ecosystem, Indian logistics and shipping companies can explore collaboration in transhipment, ship registration, maintenance and regional shipping operations, especially as IMEC develops.
In the medium term, perhaps the most promising sector is renewable energy and the green transition. Cyprus is expanding its solar and wind capacity and exploring interconnections with neighbouring countries, including undersea cables and power trading opportunities. Indian firms, with their proven expertise in large-scale solar projects, wind power, grid integration and battery storage, are well positioned to contribute. While still in its early stages, the EU’s climate commitments and Cyprus’ renewable energy policies make it one of the fastest-growing areas for cooperation.
Taken together, while all four sectors hold promise, the most immediate opportunities lie in IT, digital and AI services, followed closely by renewables, with pharmaceuticals and shipping adding long-term depth and resilience to the partnership.
What is being done to encourage Indian companies to invest in Cyprus, especially in fast-growing sectors?
A number of initiatives are being undertaken to encourage Indian companies to invest in Cyprus, particularly in fast-growing sectors such as technology, shipping, financial services and renewable energy. The establishment of the IGC in Mumbai in February 2025 was a significant step in this direction, designed to accelerate cooperation across infrastructure, shipping, technology, financial services and SMEs. This has been reinforced by MoUs between business chambers – for example, the Bombay Chamber of Commerce with the Cyprus Chamber of Commerce & Industry (CCCI), and the Bangalore Chamber with the Larnaca Chamber – providing structured platforms for sustained engagement.
At the operational level, Invest Cyprus, the national investment promotion agency, plays a proactive role in assisting Indian firms with office set-up, regulatory permissions, due diligence and partnerships with local entities. This facilitation has already borne fruit: in May 2025, Thomas Cook India and LTIMindtree announced new operations in Cyprus following such support. In parallel, the financial ecosystem is also being strengthened.
A notable development is the signing of an MoU between NPCI International Payments Limited (India) and Eurobank Cyprus to introduce Unified Payments Interface (UPI) services on the island, simplifying remittances and business transactions for both Indian enterprises and the diaspora. The MoU between the National Stock Exchange – International Exchange of GIFT City, India and the Cyprus Stock Exchange aims at introducing bidirectional financial products. The regulatory and tax environment further enhances Cyprus’ appeal. The DTAA between India and Cyprus reduces tax risks for cross-border investors, while the country’s stable EU-regulated framework, competitive tax regime and access to EU funds for innovation and green transition projects provide a secure and forward-looking environment for business.
Crucially, high-level diplomatic engagement has reinforced investor confidence. Prime Minister Narendra Modi’s visit to Cyprus in 2025, accompanied by business roundtables, led to joint declarations in areas such as fintech, green energy and defence cooperation. This kind of political signalling sends a clear message of mutual commitment and creates a strong climate of trust for Indian investors considering Cyprus as a gateway into the European, Mediterranean and African markets.
Can you give examples of Indian companies that have chosen to make Cyprus their European home?
Yes. LTIMindtree, which has announced the launch of a digital/AI centre in Nicosia at the CYENS Centre of Excellence, will deliver advanced digital solutions, including those for clients in the EU. Thomas Cook India, through its local entity TCI EURO (Travel Circle International Cyprus Ltd), has set up an office in Cyprus to offer services such as corporate travel, MICE and leisure travel. Drone Destination, a leading Indian drone technology and training firm, has announced its intention to establish a European subsidiary in Cyprus focusing on drone development, training, services and “drone sports.” BCentriqe.ai, an Indian-led firm, is setting up a subsidiary in Nicosia to develop advanced AI and IT solutions. These companies span numerous sectors and show that Indian firms are not just exporting to Cyprus but seeing it as a base for their operations.
Looking ahead, what is your vision for India–Cyprus business relations over the next 5-10 years?
Over the next decade, I envision India–Cyprus business relations evolving from their current modest base into a truly strategic and diversified partnership with high-impact outcomes. Bilateral trade, currently valued at approximately US$137 million (2023-24), has significant scope for expansion. By 2030-32, I expect volumes to have scaled to US$400–500 million or more, with services trade – particularly in IT, fintech and digital solutions – playing a much larger role alongside higher value-added goods.
Cyprus is also well-placed to emerge as a critical hub for Indian companies seeking EU market access, regulatory compliance, R&D opportunities, logistics and supply chain integration. Given Cyprus’ geographic advantage and its links with the Middle East and Africa, it may also serve as a bridgehead for Indian businesses targeting these neighbouring markets. In terms of sectors, I anticipate rapid growth in areas such as renewable energy and clean technologies (solar, wind, green hydrogen, battery storage), defence and cybersecurity, maritime and shipping services, space and drone technologies, AI and data analytics, pharmaceuticals and life sciences, and even creative industries like film production and digital media collaborations. EU and Indian policy incentives strongly favour innovation and sustainability in these domains, creating fertile ground for cooperation.
Fintech and financial services will also deepen as UPI integration with Eurobank Cyprus progresses, paving the way for cross-border digital payments, digital identity solutions, green finance initiatives and ESG-aligned investment funds. With such developments, Cyprus could become a key fintech hub for Indian firms aiming at European consumers.
At the same time, the success of the IMEC corridor will depend on Cyprus strengthening its infrastructure – ports, energy interconnectors, undersea cables and data systems. Indian companies with experience in smart grids, digital infrastructure and large-scale project implementation will find strong opportunities here. Policy frameworks will need to advance in parallel: expanding double taxation relief, enhancing investment protection, encouraging joint R&D, ensuring recognition of professional qualifications and developing joint standards in areas like AI ethics and renewable energy.
Finally, I see sustainability and inclusive growth as central to the partnership. Bilateral projects must increasingly align with the Sustainable Development Goals, supporting clean energy, circular economy initiatives, environmental protection and skilling of youth. Education, research and skill development exchanges can prepare human capital for the sectors of tomorrow. Taken together, these efforts will ensure that India–Cyprus business relations not only grow in size but also in strategic depth, resilience and long-term relevance.
Original photo by TASPHO
This interview first appeared in the October edition of GOLD magazine. Click here to view it.
