Prime Minister Narendra Modi embarked on a historical two-day visit to Cyprus from June 15-16, marking the first visit by an Indian PM in two decades. This pivotal trip was a segment of Modi's journey through three nations, including Canada (for the G7 Summit) and Croatia, during escalating tensions in the Middle East. As airspaces over regions like Israel, Iran, and Lebanon were temporarily closed, the PM's aircraft rerouted through the Arabian Sea and over Somalia, Ethiopia, Eritrea, and Egypt before landing in Cyprus.
This visit to Cyprus is not symbolic but strategic. India is endeavoring to reshape its relations in the Mediterranean and Europe, with Cyprus playing a critical role in this plan. The visit follows 'Operation Sindoor,' perceived as a direct message from India to Turkey, given Turkey's longstanding partnership with Pakistan and its recent anti-India activities. Concerns arose over Iranian drone provocations, prompting India to strengthen ties with Cyprus and Greece.
India and Cyprus: A Historical Bond of Decades
Cyprus, located in the Mediterranean, gained independence from British rule in 1960. However, discord between Greek and Turkish Cypriots soon ensued. A decade later, in 1974, Greece's military junta orchestrated a coup in Cyprus with the aim of merging the island with Greece. In response, Turkey intervened militarily, citing the protection of Turkish Cypriots.
Although a legitimate government was later reinstated in Nicosia, Turkish forces remained in the island's northeast, leading to the area's self-declaration as the 'Turkish Republic of Northern Cyprus'—a political entity only recognized by Ankara.
India has consistently supported a resolution to this issue in line with United Nations resolutions and international law. India has also played a significant role in the United Nations Peacekeeping Force in Cyprus (UNFICYP), with three Indian military officers having served as heads of the UN mission.
Supporter of India's Permanent Membership in UNSC
Cyprus remains a steadfast proponent of India's global ambitions. The island nation has vocally supported India's bid for a permanent seat in an expanded United Nations Security Council. Additionally, Cyprus has backed the India-US Civil Nuclear Agreement, notably within influential organizations like the NSG and IAEA.
Strengthening Economic Ties Between India and Cyprus
In a demonstration of strengthening economic ties, Prime Minister Modi and Cypriot President Nicos Christodoulides witnessed the signing of multiple key agreements. Highlighting the potential for financial services collaboration, both leaders celebrated a Memorandum of Understanding between NSE International Exchange Gift City, Gujarat, and the Cyprus Stock Exchange. Further collaboration was reached between NPCI International Payments Limited (NIPL) and Eurobank Cyprus to introduce UPI-based cross-border payments, benefiting tourists and businesses alike.
Modi also welcomed the launch of the India-Greece-Cyprus (IGC) Business and Investment Council to promote tri-lateral cooperation in sectors such as shipping, logistics, renewable energy, civil aviation, and digital services. Celebrating the interest of numerous Indian companies viewing Cyprus as a gateway to Europe, Modi acknowledged Cyprus's role as a hub for IT services, financial management, and tourism.
Europe's Trade and Investment Hub for India
Cyprus is steadily emerging as an investment and trade hub for India in Europe. In the fiscal year 2023-24, India-Cyprus trade totaled $136.96 million, with India exporting pharmaceuticals, ceramics, steel, textiles, and machinery, while importing pharmaceuticals, beverages, and other products from Cyprus.
The Strategic Role of Cyprus in India's European Vision
Cyprus plays a crucial role in India's 'India-Middle East-Europe Economic Corridor (IMEC)' initiative, linking India with the Middle East and Europe. Moreover, Cyprus's marine energy resources are areas of prospective collaboration. As Turkey's maritime disputes continue, India aims to fortify its presence in this zone. Cyprus is set to assume the presidency of the European Union in 2026, potentially facilitating India's quest for a robust European partner in the form of a free trade agreement.
After signing a Memorandum of Understanding on defense cooperation in December 2022, defense relations between the two countries continue to advance with the finalization of the Bilateral Defense Cooperation Program (BDCP) for 2025 in Nicosia. Currently, Indian Defense Advisors for Cyprus are stationed at the Indian Embassy in Cairo, overseeing cooperation efforts.
Over 11,000 Indian nationals reside in Cyprus, contributing in sectors such as IT, shipping, agriculture, and education. The two nations are also planning joint efforts in the start-up ecosystem. Modi's visit has sent a clear message to Europe: India is keen to forge strategic partnerships, particularly as it endeavors to represent the Global South.
The insights from Modi’s visit emphasize India's strategic alignments in Europe, reaffirming its commitment to fostering partnerships that elevate global stability and development.
