India and Cyprus aim to double investments in 5 years; Sign MoUs on counter-terrorism and FinTech

New Delhi: Prime Minister Narendra Modi announced on Friday the elevation of bilateral ties between India and Cyprus to a strategic partnership, asserting that the upgrade will inject fresh ambition and momentum into the relationship.

In a joint press conference following delegation-level discussions with Cypriot President Nikos Christodoulides, Modi emphasised the deep historical connection between the two republics, noting that financial investments originating from Cyprus have nearly doubled over the last 10 years.

"The bond between India and Cyprus has repeatedly stood the test of time. Today, with the formation of the India-Cyprus Strategic Partnership, we are set to infuse our relations with new ambition and new momentum," Modi said.

Economic Blueprints and Trade Opportunities

A central pillar of the diplomatic breakthrough is an ambitious economic strategy. Modi connected the substantial increase in capital inflows from Cyprus to the shifting commercial landscape surrounding the ongoing India-European Union Free Trade Agreement negotiations.

"Investment from Cyprus to India has nearly doubled over the past decade, reflecting the growing trust between our two countries," Modi added.

Reflecting on the free trade framework with the European Union, the prime minister noted that the arrangement will generate substantial new avenues of commerce, establishing a mutual objective to duplicate investment figures within the next five years.

"The India-European Union Free Trade Agreement has further opened up a wealth of new opportunities. Building on these developments, we aim to double this investment again within the next five years," Modi said.

To implement these objectives, representatives from both states signed several Memorandums of Understanding (MoUs) spanning multiple core sectors. The agreements are designed to synchronise digital infrastructure, financial technology ecosystems, and academic research centres.

The accords seek to bolster institutional alignment, student exchange initiatives, and collaborative scientific inquiries. Furthermore, negotiators established a firm consensus to finalise a comprehensive migration and mobility agreement alongside a social security compact to safeguard the legal rights of professional workers migrating between the two jurisdictions.

An MoU establishing a specialised joint working group focused on counter-terrorism operations was also formally exchanged.

Defence Upgrades and Geopolitical Alignment

Recognising the critical geographic position of Cyprus within the Eastern Mediterranean and its current occupancy of the Presidency of the Council of the European Union, bilateral defence relations received a significant upgrade.

The two democratic nations formally instituted a Joint Working Group on Counter-Terrorism to address radicalisation and transnational security threats. Modi also outlined targeted expansions in security cooperation, focusing on cybersecurity protocols, maritime domain awareness, and collaborative counter-terrorism operational intelligence networks.

"Our defence collaboration with Cyprus has also increased. We have also decided to expand cooperation in areas of cyber security, maritime security and counter terrorism," Modi said.

Addressing the broader international implications of the alliance, Modi highlighted the fundamental principles anchoring the updated strategic partnership.

"The friendship between India and Cyprus is both strong and forward-looking. Our partnership is founded on a shared commitment to values such as democracy and the rule of law. We deeply respect the sovereignty and territorial integrity of all nations. India is, and will continue to be, fully dedicated to upholding these principles," Modi said.

State Itinerary and Diplomatic Trajectory

President Christodoulides' official itinerary in the capital follows an initial visit to the state of Maharashtra, where he was received by Gov. Jishnu Dev Varma and Chief Minister Devendra Fadnavis.

While in Mumbai, the president managed a high-powered commercial delegation that included Cypriot Foreign Minister Constantinos Kombos and Transport Minister Alexis Vafeades. The group presented substantial bilateral investment opportunities in global maritime shipping, commercial logistics, and financial services to prominent leaders of Indian industry.

Following a diplomatic luncheon hosted by Modi at Hyderabad House, Christodoulides will travel to the Rashtrapati Bhavan. There, President Droupadi Murmu will formally welcome the Cypriot leader and host an official state banquet in his honour.

The Ministry of External Affairs previously noted that the visit capitalises on the diplomatic momentum generated by Modi's historic state visit to Cyprus in June 2025, reflecting a mutual commitment to deepening the India-Cyprus partnership.

The Cypriot president is accompanied by a high-ranking delegation comprising Kombos, Vafeades, and various senior government officials and commercial executives.

The current diplomatic engagement carries increased geopolitical significance because the visit occurs less than a year after Modi's landmark journey to Cyprus in June 2025, which marked the first visit by an Indian prime minister to the Mediterranean island state in more than two decades.

With inputs from ANI