Shri Manish: Indian enterprises are recognising Cyprus as a gateway to the European Union and beyond

“For Cyprus, the entry of Indian firms brings innovation, capital, and market diversification. For India, Cyprus offers access to European markets, a foothold in the Mediterranean, and collaboration in sectors like shipping, fintech, defence, and green energy,” India’s High Commissioner to Cyprus, Shri Manish notes.

In an exclusive interview with CBN following Indian Prime Minister Narendra Modi’s recent visit to Cyprus, His Excellency the High Commissioner also comments on the increasing number of Indian companies either with an existing presence in Cyprus or plans to come to the island.

Among other things, he also reveals that Bao Financial Group, through its SEBI-registered flagship fund, has announced plans to deploy capital in Make-in-India sectors such as agrotech, defence, drone manufacturing, and clean energy, establishing the fund in Cyprus.

“Their interest in establishing the fund in Cyprus reflects the growing confidence among financial institutions in Cyprus’s regulatory architecture and its potential to become a financial bridge to Europe,” Shri Manish points out.

On wider interest in Cyprus from Indian companies, the High Commissioner continues, "This is just the beginning. As the newly formed India–Greece–Cyprus Business and Investment Council gains traction, we expect to see more Indian companies considering Cyprus as a base to start their operations in the EU."

"What we are witnessing is not just a handful of companies entering the Cypriot market, but the beginning of a structured and strategic movement. Indian enterprises are recognising Cyprus as a gateway to the European Union and beyond," he says.

How significant is Prime Minister Narendra Modi’s visit to Cyprus?

Prime Minister Narendra Modi’s visit to the Republic of Cyprus from 15 to 16 June 2025 marks a historic milestone and reaffirms the deep and enduring friendship between the two nations. This is the first visit by an Indian Prime Minister to Cyprus in over two decades. The visit celebrates not only a shared history, but a forward-looking partnership, rooted in a joint strategic vision and mutual trust and respect. It reflects the increasing alignment of values, interests, international outlook, and vision between the two countries.

Upon arrival, Prime Minister Modi was warmly received at the airport by President Nikos Christodoulides as a special gesture and was accorded a ceremonial welcome at the Presidential Palace. During the visit, the Prime Minister was conferred with the prestigious Grand Cross of the Order of Makarios III by the President of Cyprus. He described it as a tribute to the 140 crore Indians and a symbol of the enduring friendship between India and Cyprus. He dedicated the award to the longstanding warm ties between the two nations built on shared values and mutual trust, and embraced it as a renewed commitment to strengthening and diversifying the partnership.

The visit provided an opportunity to build upon historical bonds and expand ties in areas such as trade, investment, security, technology, and people-to-people exchanges. Both sides reaffirmed their support for respecting the sovereignty and territorial integrity of each other and reiterated their commitment to democracy, the rule of law, and multilateralism. In the Prime Minister’s own words, the visit “presents a golden opportunity to a new chapter in our bilateral relations.” It reaffirmed the importance India attaches to its relations with Cyprus and demonstrated shared resolve to shape a peaceful, stable, and prosperous future together.

What does it mean for the bilateral ties of the two countries?

Prime Minister Modi’s visit resulted in a comprehensive advancement of bilateral relations between India and Cyprus. Both sides agreed to develop a concrete roadmap to guide their partnership for the next five years. The two leaders took stock of the ongoing cooperation in various areas, including trade and investment, science and research, cultural cooperation, and people-to-people ties, and explored avenues for collaboration in fintech, start-ups, defence industry, connectivity, innovation, digitalisation, artificial intelligence, and mobility.

They agreed to establish cyber and maritime security dialogues and a mechanism for real-time exchange of information on terrorism, drugs, and arms trafficking. The Bilateral Defence Cooperation Programme signed in January 2025 was appreciated as a means to give concrete shape to defence collaboration. They also committed to strengthening cooperation in emergency preparedness and coordinated crisis response, including institutionalising coordination in evacuation and Search and Rescue (SAR) operations.

Both leaders unequivocally condemned terrorism and violent extremism in all forms, including international and cross-border terrorism. They strongly condemned the recent heinous terrorist attacks in Pahalgam, Jammu & Kashmir, and emphasised that those responsible should be held accountable. They reiterated their zero-tolerance approach to terrorism, called for the dismantling of terrorist infrastructure, disruption of financing networks, and the elimination of safe havens.

The two sides welcomed the establishment of the India–Greece–Cyprus Business and Investment Council to deepen economic engagement and noted the signing of an MoU between NSE International Exchange, GIFT City and the Cyprus Stock Exchange. They also welcomed the understanding reached between NIPL (NPCI International Payments Ltd) and Eurobank Cyprus to introduce UPI-based cross-border payments. Both leaders underlined that the Roundtable interaction with business leaders provided practical suggestions that will form the basis for a structured economic roadmap in trade, innovation, and strategic sectors.

They expressed readiness to support the conclusion of the EU–India Free Trade Agreement by the end of the year, recognising its strategic and economic potential. The leaders also reaffirmed the significance of the India–Middle East–Europe Economic Corridor (IMEC) as a transformative, multi-nodal initiative that fosters peace, economic integration, and sustainable development.

Both countries agreed to finalise a Mobility Pilot Program Arrangement by the end of 2025 and discussed the importance of enhancing tourism and establishing direct air connectivity between Cyprus and India. An MoU to establish an India Studies ICCR Chair at the University of Nicosia was also signed.

The leaders underscored their shared commitment to peace, democracy, the rule of law, and sustainable development, and reaffirmed their support for a rules-based international order grounded in the UN Charter and international law, with particular emphasis on the United Nations Convention on the Law of the Sea (UNCLOS). They reiterated strong support for reform of the United Nations Security Council to make it more effective, efficient, and representative, with Cyprus reiterating its support for India’s permanent membership in a reformed and expanded Security Council.

India reiterated its unwavering support for the independence, sovereignty, territorial integrity, and unity of the Republic of Cyprus. Both countries expressed their strong commitment to the resumption of UN-facilitated efforts to achieve a comprehensive and lasting settlement of the Cyprus Question, in accordance with UN Security Council resolutions. They also committed to working closely on implementing the 2024 Apia Commonwealth Ocean Declaration, recognising ocean governance as a pillar of global sustainability. The leaders acknowledged Cyprus’s role in hosting the Commonwealth Ocean Ministers Meeting and establishing the Blue Charter Centre of Excellence.

These outcomes confirm that the India–Cyprus relationship has entered a new and strategic phase, grounded in mutual trust and shared aspirations. The visit strengthened bilateral cooperation across security, economic, cultural, and multilateral dimensions and reaffirmed a joint vision for a peaceful, interconnected, and prosperous future.

Thomas Cook India has established a presence in Cyprus while LTIMindtree, together with Voicing.AI in which it has invested as established a digital innovation centre at the CYENS Center of Excellence, and, Eurobank has announced that it is bring the Indian electronic payments system UPI to Cyprus amid its efforts to make Cyprus a gateway for businesses from India to the European Union. More companies from India are reported to follows. What does this mean for the two countries’ business relations?

The growing presence of Indian companies in Cyprus, exemplified by Thomas Cook India, LTIMindtree, Voicing.AI, and Eurobank’s collaboration to launch India’s UPI system, marks a transformational phase in bilateral business relations. These developments signal a shift from transactional commerce to long-term, strategic economic integration. Cyprus is increasingly being positioned not only as a regional partner but as India’s trusted gateway to the European Union.

The establishment of a digital innovation centre at the CYENS Centre of Excellence by LTIMindtree and Voicing.AI highlights India’s rising role in shaping Europe’s technology landscape. Meanwhile, the introduction of UPI by Eurobank offers a scalable model for digital public infrastructure exports, reinforcing India's status as a leader in financial technology. These moves reflect confidence in Cyprus’s stable regulatory environment, skilled workforce, and EU-compliant institutions.

For Cyprus, the entry of Indian firms brings innovation, capital, and market diversification. For India, Cyprus offers access to European markets, a foothold in the Mediterranean, and collaboration in sectors like shipping, fintech, defence, and green energy. This deepening economic engagement paves the way for robust, two-way trade and investment, setting the stage for a resilient, digitally driven, and innovation-focused business corridor between the two nations.

Do you know of any other companies that intend to come to Cyprus?

Prime Minister Modi’s visit to Cyprus has served as a powerful catalyst for India–Cyprus economic relations. What we are witnessing is not just a handful of companies entering the Cypriot market, but the beginning of a structured and strategic movement. Indian enterprises are recognising Cyprus as a gateway to the European Union and beyond.

During the Business Roundtable held on 15 June 2025, several companies formally announced their intent to establish a long-term presence in Cyprus. For instance, Centrique.ai has committed to setting up operations in Cyprus and Greece through a partnership with Invest Cyprus. This venture will be a part of the emerging India–Europe AI Corridor and is aimed at delivering scalable, high-trust artificial intelligence solutions tailored for the EU regulatory space. A formal announcement is likely to be made soon.

Another Indian company, Drone Destination, a leading Indian drone technology training company, has already announced that it will establish its European subsidiary in Cyprus which will focus on training on drone development, services, training and drone sports, creating a comprehensive future-ready ecosystem for unmanned aerial systems across Europe.

Another important announcement came from the Founder of Pixis and Voicing AI, who shared his intention to develop the India–Cyprus AI Corridor as part of the larger India–Middle East–Europe Economic Corridor (IMEC). His firm, with 14 patents developed in India and a billion-dollar valuation, sees Cyprus as an ideal innovation hub within the European Union. These are not speculative ideas, these are companies with solid technological foundations choosing Cyprus as a platform for their global ambitions.

The Fairfax Group, a major player with a proven track record in infrastructure, also made a significant expression of intent. They expressed interest in partnering in the development of a logistics and transhipment hub in Cyprus, drawing on their expertise from their operations in India. This is a powerful example of how Indian firms are looking beyond traditional sectors and entering high-value infrastructure spaces in Cyprus.

Furthermore, Bao Financial Group, through its SEBI-registered flagship fund, announced plans to deploy capital in Make-in-India sectors such as agrotech, defence, drone manufacturing, and clean energy. Their interest in establishing the fund in Cyprus reflects the growing confidence among financial institutions in Cyprus’s regulatory architecture and its potential to become a financial bridge to Europe.

In short, this is just the beginning. As the newly formed India–Greece–Cyprus Business and Investment Council gains traction, we expect to see more Indian companies considering Cyprus as a base to start their operations in the EU. These developments underscore a deepening strategic convergence, and I am confident that Cyprus will play an increasingly important role in India’s global economic architecture in the years ahead.