India-Cyprus Relations: Strategic Partnership and Economic Roadmap 2025–2029

India and Cyprus are advancing their long-standing partnership with renewed emphasis on economic, strategic, and technology-led cooperation. Both sides have begun reviewing the Joint Action Plan 2025–29, which outlines initiatives to strengthen defence collaboration, improve connectivity, and expand bilateral trade and investment.

For businesses, this evolving framework provides a more stable policy environment and opens up fresh opportunities for cross-border partnerships.

India and Cyprus partnership built over the span of six decades, has expanded notably in areas such as trade, investment, and multilateral engagement, with both countries now prioritizing deeper economic collaboration as a central pillar of their bilateral agenda.

Cyprus Foreign Minister Constantinos Kombos visited New Delhi from October 29-31, 2025, on his first official trip to India. During the visit, he met with India’s External Affairs Minister Dr. S. Jaishankar to discuss bilateral relations, the India-Cyprus Joint Action Plan, and regional and global issues.

As per media reports, the two ministers reviewed the India-Cyprus Joint Action Plan 2025–29, which outlines a roadmap for expanding cooperation across emerging sectors. 

India-Cyprus Joint Action Plan 2025-29

Earlier in June 2025, India and Cyprus outlined a framework to elevate their bilateral engagement through a structured Five-Year Joint Action Plan (2025–2029). This plan was endorsed during Indian Prime Minister Narendra Modi’s visit to Cyprus (June 15-16, 2025).

The Action Plan mandates regular high-level political consultations and systematic follow-up through existing bilateral mechanisms. Additionally, Cyprus Ministries of Foreign Affairs and India’s External Affairs Ministry will jointly oversee implementation of this initiative.

Defense, security, and crisis cooperation

A central pillar of the India-Cyprus Joint Action Plan 2025–29 lies in defense and security collaboration. Both countries have committed to expanding their partnership across strategic, operational, and technological domains to address evolving security challenges.

The Action Plan prioritizes cooperation in the following areas:

1. Defense industry collaboration: Joint exploration of defense manufacturing, technology partnerships, and industry linkages to support strategic autonomy in both countries.
2. Cybersecurity and emerging technologies: Strengthening cooperation on cyber resilience, digital infrastructure security, and new-age defense technologies.
3. Maritime security: Enhancing coordination through regular port calls by Indian naval vessels, joint maritime training activities, and improved maritime domain awareness in the Mediterranean and Indo-Pacific regions.
4. Crisis response and SAR operations: Establishing mechanisms for coordinated crisis response, including evacuation operations and search and rescue (SAR) cooperation.

These efforts build on a series of recent foundational agreements and exchanges:

• An MoU on defense cooperation, signed in December 2022, set the framework for structured defense engagement.
• The Bilateral Defense Cooperation Program (BDCP) 2025, finalized in January 2025, outlines annual activities and areas of collaboration.
• Participation of a Cypriot delegation in AERO India 2025 strengthened avenues for defense technology cooperation, joint ventures, and industry partnerships.

Connectivity and regional integration

Recognizing their complementary geostrategic roles, India and Cyprus agreed to jointly support the India-Middle East-Europe Economic Corridor (IMEC) as a platform for sustainable connectivity and economic integration. With Cyprus’ position as a gateway to Europe, and both countries are keen on greater participation of Indian shipping companies in Cyprus and the initiation of joint maritime ventures.

Trade, innovation, and investment cooperation

The Action Plan also places emphasis on expanding bilateral trade, investment, research collaboration, and innovation. Key initiatives include:

1. A high-level Cypriot business delegation visit to India
2. Establishment of a Cyprus–India Business Forum and dedicated business roundtable
3. New partnerships across startups, academia, and industry
4. Proposed memorandum of understanding (MoU) on cooperation in artificial intelligence (AI), digital infrastructure, and scientific research

Expanding economic and commercial relations

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Economic engagement between India and Cyprus has strengthened over the past several years, supported by expanding trade flows, deeper investment linkages, and growing business-to-business partnerships. While annual trade volumes remain modest, the relationship is becoming more diversified across commodities and sectors, reflecting wider economic cooperation.

Mapping trade trends (FY 2020-21 to FY 2024-25)

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Bilateral trade between the two countries has fluctuated over the past five years, influenced by global market conditions and cyclical demand.

• India’s exports to Cyprus rose from US$90.11 million in FY 2020-21 to a peak of US$139.85 million in FY 2021-22, followed by corrections and modest recovery in subsequent years.
• In recent years, India’s imports from Cyprus have steadily grown, particularly in FY 2021-22 and FY 2022-23, reflecting growth in sectors such as metals and machinery.
• Overall bilateral trade averaged around US$160-200 million annually, with FY 2024-25 recording US$138.74 million.

Despite fluctuations, the trade basket has broadened, and both economies are exploring opportunities to scale two-way commerce.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI.

Cyprus’ foreign direct investment (FDI) into India

Cyprus remains one of India’s top investment partners. According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), Cyprus ranks as the ninth-largest source of FDI equity inflows into India, with cumulative investments of US$15.76 billion between January 2000 and June 2025.

These investments have been concentrated primarily in the following sectors:

• IT and software services
• Automobile manufacturing
• Real estate and infrastructure
• Logistics services
• Shipping and maritime activities
• Pharmaceuticals

Also Read: India’s Foreign Direct Investment Tracker 2025

Double taxation avoidance agreement (DTAA)

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A revised India-Cyprus DTAA (2016) brought the treaty in line with OECD BEPS standards, offering greater predictability for investors. These revision clarified the taxation of capital gains and resulted in Cyprus being removed from India’s list of “Notified Jurisdictional Areas” and improving its standing as an investment partner.

Cyprus is also among the few non-FATF (Financial Action Task Force) jurisdictions to receive Category-I Foreign Portfolio Investor (FPI) status from India, reinforcing its position as a preferred gateway for investment into India.

Source: Income Tax Department, GoI; India Briefing

Also Read: India Clarifies Tax Treaties with Mauritius, Cyprus, and Singapore

Trade facilitation platforms and business linkages

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A number of institutional mechanisms underpin the growing commercial engagement between India and Cyprus. These platforms help expand market access, promote investments, and strengthen industry-level cooperation:

• The Joint Economic Committee (JEC), established in 1989, serves as the primary forum for advancing trade, economic, and industrial collaboration.
• Cyprus-India Business Association (CIBA) facilitates regular business outreach, networking, and sector-specific engagement between companies from both countries.
• The Invest India-Invest Cyprus MoU (2021) provides a framework for coordinated investment promotion, enabling joint initiatives and business facilitation.
• Regional chamber-level partnerships link the Cypriot cities of Limassol and Larnaca with the Indian regions of Goa and Bengaluru, as well as with Indian industry associations, to promote SME collaboration and localized economic cooperation.
• The India-Greece-Cyprus Business and Investment Council (2025) has been established to expand trilateral collaboration in areas such as infrastructure, maritime services, technology, innovation, and small and medium enterprises.

Conclusion

India and Cyprus have entered into multi-dimensional partnership in 2025. With renewed momentum in trade, defense cooperation, technology collaboration, and institutional dialogue, the relationship is well-positioned to advance in the years ahead, supported by a clear focus on economic connectivity, investment growth, and strategic alignment.

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