Nicosia, May 27: Cyprus President Nikos Christodoulides and Prime Minister Narendra Modi have agreed to elevate India-Cyprus relations to a strategic partnership, with both countries expanding cooperation in defence, connectivity, trade and technology, senior government officials said.
The decision follows PM Modi’s visit to Cyprus last year and reflects growing momentum in bilateral engagement.
Officials said Cyprus has expressed interest in strengthening cooperation with India’s defence industry, including potential procurement and joint industry collaboration.
President Christodoulides reportedly highlighted the European Union’s €150-billion SAFE instrument aimed at enhancing defence and security capabilities across member states. Cyprus, eligible for €1.2 billion under the framework, is exploring opportunities to modernise its military capabilities and source defence equipment from India.
Both sides agreed that a defence ministerial visit would be organised soon to discuss defence cooperation and specific products of mutual interest.
Transport connectivity also emerged as a key focus area, with officials stating that discussions will be held with Air India and IndiGo on launching direct flight services between the two countries.
Direct air connectivity is expected to be established by the end of 2026, supported by interest from both carriers.
Cyprus continues to position itself as a gateway to Europe for Indian businesses, with companies from India already operating across sectors including defence, manufacturing and technology.
To deepen economic engagement, Cyprus will open a trade office in Mumbai from September 1 and strengthen its diplomatic presence in New Delhi through additional senior appointments.
Financial sector cooperation is also gaining traction. Eurobank has opened its first representative office in Mumbai and is working on integrating payment systems, including UPI, which is expected to become operational in Cyprus next year.
Officials said the payment integration could support investments and transactions between businesses and users in both countries.
In the entertainment sector, the first Bollywood film to be shot in Cyprus has been announced, with filming scheduled to begin in June and release planned for February next year.
Cyprus is also working with the European Commission and India to advance legal documentation for a proposed Free Trade Agreement, alongside negotiations on investment protection and cooperation in climate and security projects.
Sectoral engagements planned for 2026 include dialogues on maritime security, cyber cooperation, counter-terrorism and a Green Hydrogen Task Force.
