Viraj Kulkarni, Honorary Consul of Cyprus in Mumbai, highlights the surge in business, tourism and cultural exchange between Cyprus and India, driven by new collaborations in capital markets, MSMEs and innovation.
Here, he shares his vision of how growing interest in the two countries can evolve into long-term strategic cooperation.
What are the most significant cultural and economic connections between India and Cyprus and how do you think they can they be strengthened further?
Besides a historical connection since the 1960s, the recent engagement between the leaders of the two countries, especially between the Prime Minister of India and the President of Cyprus, has added new and significant dimensions to the promotion of cultural and economic ties.
Maharashtra, India’s leading state in terms of GDP, is a hub of economic activity while its capital, Mumbai, is a melting pot of cultural activities. In recent times the multi-tier engagement between the Chambers of Commerce, the first business delegation visit from Mumbai to Cyprus, the tie-up of the National Stock Exchange-IX with the Cyprus Stock Exchange, the increased level of activities in Mumbai and in Cyprus, the establishment of the Honorary Consulate of Cyprus in Mumbai, the sharp increase in tourism and related industries are all signs of exponential growth. Interest is also being shown by the corporate and MSME (Micro, Small & Medium Enterprises) segments for strategic connections.
Which industries do you believe will take the lead in driving bilateral trade between Cyprus and India? What specific opportunities exist for Cypriot companies looking to tap into India’s vast consumer base?
In my opinion, in addition to capital markets, significant opportunities exist across Maharashtra and Gujarat in many areas: MSMEs, pharma, startups, shipping and maritime, defence, medical, tourism and hospitality, education, real estate, the mobility of skilled labour, research and innovation, banking, jewellery, renewable energy, financial and professional services. These are best tapped through multiple business chambers, visits and engagement with the High Commission and the Honorary Consulate of Cyprus in Mumbai.
How competitive do Indian investors find Cyprus, compared to other EU jurisdictions?
Cyprus is a highly competitive jurisdiction for those seeking to invest in Europe, as well as in the island itself. Furthermore, the India-Middle East-Europe Economic Corridor (IMEC) will significantly enhance this competitiveness and cooperation.
However, while opportunities exist and there is a significant ease of doing business in Cyprus, a lack of awareness of the jurisdiction and the absence of direct flights are limiting engagement between the two countries. The High Commission has undertaken several steps to address these issues by engaging with the relevant stakeholders, including industry leaders in Mumbai, Delhi, Hyderabad, Kolkata and other cities.
As someone deeply involved in diplomacy and international business, what motivates you in your role as Honorary Consul and what do you hope to achieve during your tenure?
It has been just over a year since I assumed this responsibility. I have received strong support and guidance from the Cypriot High Commissioner Evagoras Vryonides, and others: ministry officials in Cyprus, Invest Cyprus, the Cyprus Chamber of Commerce & Industry, WICCI, the Cyprus Stock Exchange, the High Commission of India in Cyprus and the Government of Maharashtra. Together with policymakers, we have established significant business connections between them and their counterparts.
We have also concentrated on promoting trade and tourism by engaging with multiple stakeholders (airlines, hotels, tour operators, medical and wellness professionals, MICE event organisers, entertainment industry representatives, etc.).
Additionally, we have created a LinkedIn page to provide the latest information on multiple events and initiatives. It currently has over 600 followers. I hope to see a significant increase in the relationship, understanding, collaborations and economic benefits between the two countries, in line with the aspirations of the leaders of both countries and the High Commission.
If we look 5-10 years ahead, where do you see the India-Cyprus business relationship? Can we expect to see major Indian corporates setting up their European headquarters in Cyprus?
Over the next five years, I envision a six- to seven-fold growth in India-Cyprus business. This expansion has already begun, especially in the tourism industry and capital markets and, to a limited extent, in the MSME space. We have received enquiries from Indian corporates about establishing a presence in Cyprus to access the Cyprus and European markets and I am sure that these will likely lead to a physical presence in Cyprus, given the numerous benefits that the country offers. It is perhaps too early to expect major Indian corporations to establish their European headquarters in Cyprus but I am sure that the number of Indian companies in Cyprus will grow.
What advice would you give Indian companies or investors considering Cyprus and vice versa?
My advice is this: engage more through the various Chambers of Commerce and the High Commission and reach out for information. Participate in multi-level events in India and Cyprus and explore the multiple benefits that Cyprus offers, including its tax system and ease of doing business. Cyprus also provides a wealth of young, hardworking English-speaking talent. At the same time, Cypriot companies and investors need to invest in finding out more about the multi-level possibilities to engage in strategic alliances with Indian companies in order to emerge as an alternative to other European destinations.
This interview first appeared in the October edition of GOLD magazine. Click here to view it.
