Prime Minister Narendra Modi on Monday said India remains firmly committed to finalising a Free Trade Agreement (FTA) with the European Union by the end of this year, as he addressed the India-Cyprus CEO Forum in Limassol during his official visit to the Mediterranean island nation.
Speaking at the business summit, Modi underlined India’s impressive growth trajectory, rapid digital transformation, and its aspiration to become a major global manufacturing hub.
“Today, India is one of the fastest-growing emerging economies in the world… Today, India has a clear policy. Today, the mutual trade has reached 150 million dollars, but the real potential of our relations is much more than this,” the Prime Minister said, adding, “It has happened after 6 decades that the same government has been elected for the third consecutive time.”
Modi, who is en route to the G7 Summit in Canada, also expressed satisfaction over the growing economic collaboration between India and Cyprus, especially the agreement between the Cyprus Stock Exchange and the National Stock Exchange (NSE) of India on cooperation in GIFT City, Gujarat.
“I am happy to know that Cyprus Stock Exchange and NSE (National Stock Exchange) have agreed on cooperation in GIFT City in my home state, Gujarat. Last month, an ambitious FTA was agreed between India and UK. Now we are committed to conclude a free trade agreement between India and Greece by the end of this year,” the Prime Minister said.
He also welcomed the establishment of the India, Cyprus and Greece Business and Investment Council, calling it an important step in broadening commercial partnerships.
Also read: PM Modi arrives in Cyprus on first leg of three-nation tour
“Cyprus has been our trusted partner for a long time and there has been significant investment from here in India. Many Indian companies have also come to Cyprus and in a way, Cyprus is seen as a gateway to Europe,” he observed.
In a post on X after his meeting with Cyprus President Nikos Christodoulides, Modi said, “Boosting business linkages! President Nikos Christodoulides and I interacted with leading CEOs in order to add vigour to commercial linkages between India and Cyprus. Sectors like innovation, energy, technology and more offer immense potential. I also talked about India’s reform trajectory in the last decade.”
During the Prime Minister’s visit, a Memorandum of Understanding (MoU) was also signed between the National Payments Corporation of India (NPCI) and Eurobank of Cyprus to introduce UPI services in Cyprus for cross-border transactions. Bilateral trade between India and Cyprus has remained “steady amidst fluctuations” over recent years, and was US $136.96 million for April 2023-March 2024, according to the MEA.
Touching upon India’s digital transformation, Modi emphasised how the country had become a global leader in financial inclusion and digital transactions.
“There has been a digital revolution in the last 10 years. Financial inclusion has become an example of this. Today, 50 per cent of the world’s digital transactions take place in India through Unified Payments Interface i.e. UPI. Many countries, like France, are associated with it. Talks are going on to include Cyprus in this and I welcome it,” he stated.
The Prime Minister also shed light on India’s infrastructure and industrial ambitions, stating that the government is investing over $100 billion annually in futuristic infrastructure.
“In this year’s budget, we have started the Manufacturing Mission. Our focus is on maritime and port development. We are also giving priority to shipbuilding and shipbreaking. A new policy is also being brought for this. The civil aviation sector is also moving forward rapidly,” Modi noted.
The Prime Minister underlined India’s innovation ecosystem and its skilled youth base as key engines of growth, adding: “Innovation has become a strong pillar of India’s economic strength. Our more than 1 lakh startups sell solutions, not just dreams…”
India’s engagement with Cyprus is being closely watched for its strategic implications, particularly in the broader Mediterranean region. The bilateral relationship is being fortified through not only investment and trade, but also geopolitical alignment, as New Delhi seeks deeper partnerships across Europe.
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