Prime Minister Narendra Modi's recent visit to Cyprus, the first by an Indian Prime Minister in over two decades, carries significant weight, especially considering the complex geopolitical landscape involving Turkey. The visit, part of a three-nation tour including Canada and Croatia, signals India's growing interest in the Mediterranean region and its strategic recalibration in response to regional dynamics.
Cyprus, a key member of the European Union, holds strategic importance for India due to several factors. First, Cyprus is a rival of Turkey, a nation whose relationship with India has deteriorated markedly in recent times. Turkey's increasing support for Pakistan, particularly after recent events, has triggered a strong backlash in India, including boycotts of Turkish goods and services. This has led India to deepen its engagement with countries that have strained relations with Turkey, such as Armenia, Greece, and now, Cyprus.
Modi's visit sends a strong message of solidarity to Cyprus, which has been divided since 1974, with Turkey occupying its northern third. This support is particularly crucial as Cyprus navigates regional tensions stemming from Turkish drilling activities in the Eastern Mediterranean, an area rich in natural gas reserves. India, seeking to diversify its energy sources, views Cyprus as a potentially important partner in future energy projects.
Beyond the geopolitical signaling, Modi's visit aims to strengthen economic ties between India and Cyprus. Discussions between Modi and Cypriot President Nikos Christodoulides are expected to focus on expanding cooperation in trade, investment, security, and technology. A key highlight of the visit includes a business roundtable in Limassol, where Modi addressed business leaders from both countries, emphasizing India's commitment to deepening economic ties. He highlighted India's economic trajectory, projecting it to become the world's third-largest economy soon, and invited Cypriot businesses to invest in sectors like innovation, energy, technology, and digital infrastructure.
Several Memoranda of Understanding (MoUs) were signed during the visit, including agreements between the Cyprus Stock Exchange and India's National Stock Exchange (NSE) for dual listings and financial collaboration, and between the Bombay Chamber of Commerce and the Cyprus Chamber of Commerce and Industries. These agreements aim to enhance mutual investment activities and promote overall business cooperation between Indian and Cypriot companies. Of particular significance is the MoU between NSE International Exchange at GIFT City in Gujarat and the Cyprus Stock Exchange, which is expected to create new opportunities for investors and businesses by facilitating dual listings and joint research programs.
Cyprus also plays a crucial role in India's connectivity initiatives. It forms part of the energy corridor that will connect India with Europe and strengthen East-West connectivity through the India-Middle East-Europe Corridor (IMEC). Modi's visit aims to anchor Cyprus more firmly in this strategic economic corridor, enhancing trade and investment flows between the two regions.
Furthermore, with Cyprus set to hold the rotating presidency of the EU Council in 2026, Modi's visit helps pave the way for deeper India-EU collaboration on trade, security, and global governance issues, leveraging Cyprus's influence within the EU. This aligns with India's broader push for a free trade agreement (FTA) with the EU.
In summary, PM Modi's visit to Cyprus is multifaceted. It underscores India's support for a nation facing regional challenges from Turkey, strengthens bilateral economic ties, and enhances India's strategic positioning in the Mediterranean region. The visit reflects India's proactive foreign policy, which seeks to build alliances and partnerships that serve its economic and strategic interests while responding dynamically to evolving geopolitical realities.
