Cyprus pitched as strategic EU starting point for Indian capital

Cyprus pitched itself as a strategic European gateway for Indian capital at the India–Cyprus Business and Investment Summit 2026 in Nicosia, with business and diplomatic leaders pointing to a partnership gaining depth against a shifting geopolitical and trade backdrop.

Addressing the summit organised by the High Commission of India in Cyprus, Cyprus Chamber of Commerce and Industry (Keve) president Stavros Stavrou told Indian investors, by saying that “If you are planning your European strategy today, Cyprus should not be an afterthought, but the starting point.”

He described India as a “defining force of the 21st century”, reshaping technology, supply chains and global capital flows. In a more complex international environment, he added, “stability has become a competitive advantage”, arguing that this is where Cyprus positions itself.

As he set out, Cyprus offers an Anglo-Saxon legal system, EU and Eurozone membership, a transparent and competitive tax framework and a multilingual workforce experienced in cross-border structures.

Through the island, he said, Indian companies can access the EU single market of more than 450 million consumers within a predictable regulatory setting, while maintaining flexibility and cost-effectiveness.

Stavrou said Indian groups can establish holding companies, regional headquarters and investment platforms in a jurisdiction familiar with international entrepreneurship.

He also referred to Cyprus’ recognition by India as a Category 1 jurisdiction for Foreign Portfolio Investment, saying the classification “reflects confidence in the highest regulatory level” and emphasises its credibility.

Against the redesign of global trade routes, he pointed to the India–Middle East–Europe Economic Corridor, arguing that Cyprus “naturally fits” due to its location in the Eastern Mediterranean and its maritime ecosystem.

For Indian shipping and logistics companies, he said, the island offers proximity, expertise and stability.

He stressed that the chamber is seeking “real transactions, real partnerships and real expansion strategies”, working with authorities to support investors beyond the signing of agreements.

The India–Cyprus economic relationship, he concluded, is entering a new phase, while expressing hope for de-escalation in the wider region.

The summit also saw three memorandums of understanding (MoU), which the Indian High Commissioner described as evidence that cooperation is evolving into a broader strategic partnership.

One MoU was signed between Keve and the Federation of Indian Chambers of Commerce and Industry. A second, between India’s Services Export Promotion Council and Keve, focuses on services, with India aiming to build a one-trillion-dollar services export economy by 2030. A third was agreed between Pinaka Technologies and Cyprus-based Celog in defence and cybersecurity.

Indian High Commissioner Manish Manish referred to the visit of Prime Minister Narendra Modi to Cyprus last June, the first by an Indian premier in two decades, which led to the India–Cyprus action plan 2025 – 2029 covering trade, investment, technology, energy and defence.

He described India as one of the world’s five largest economies and the fastest-growing major economy, with the largest youth population and the third-largest startup ecosystem.

India’s Unified Payments Interface, he noted, processes more than 14 billion transactions per month, reflecting rapid digitalisation.

For Cyprus, he cited political stability, regulatory clarity and its role as an EU member state at the crossroads of Europe, Asia and Africa, also within the India–Middle East–Europe corridor.

On defence, he recalled that a bilateral defence and security cooperation plan for 2026 was signed in January, pointing to growing convergence as India expands strategic partnerships and Cyprus strengthens its defence posture.

Manish also emphasised human capital, noting that around 1.5 million engineers graduate annually from Indian universities, creating scope to link India’s skills base with international demand, including in Cyprus.

Bilateral trade, he said, remains stable but has room to grow, with India’s 1.4 billion consumers and Cyprus’ EU gateway role forming a potential corridor. Referring to B2B meetings held at Keve, he said the aim is to translate dialogue into concrete commitments.

A similar line was taken by Chrysilios Pelekanos, partner at PwC Cyprus, who said “Cyprus is becoming a gateway for Indian businesses to the European Union”, a view he noted was acknowledged by Modi himself.

Pelekanos said political ties over the past two years have been matched by stronger business links, with a rising number of Indian companies using Cyprus as a base.

He cited Thomas Cook India, which established its European base in tourism and real estate on the island, and LTIMindtree, which has created an AI hub in Cyprus.

He added that Indian start-ups, particularly in technology, as well as publicly listed drone companies, have also established a presence.

Further progress, Pelekanos concluded, will depend on sustained and mutually beneficial business activity, with the action plan expected to deepen strategic cooperation in the coming years.