India and Cyprus are entering a new phase of strategic cooperation as the two countries proceed with the review and activation of the Joint Action Plan 2025–2029.
The five-year agreement, approved during the visit of Indian Prime Minister Narendra Modi to Nicosia in June 2025, aims to strengthen defense cooperation, upgrade technological partnership, and deepen economic and trade relations.
The framework is now considered more stable and attractive for businesses and investors, with both sides placing economic cooperation – after 60 years of diplomatic relations – at the core of their common agenda.
Cypriot Foreign Minister Constantinos Kompos paid his first official visit to India in late October 2025, where he met with Indian External Affairs Minister Dr. Subrahmanyam Jaishankar. The two ministers reviewed the progress of the Action Plan and discussed ways to enhance cooperation in defense, technology, maritime security, and investment.
Defense, security, and technological cooperation
According to a detailed analysis by India Briefing, a central pillar of the Roadmap 2025–29 is enhanced cooperation in defense and security. India and Cyprus have committed to joint actions in the defense industry, cybersecurity, cutting-edge technologies, and maritime security to address modern threats.
The Action Plan emphasizes the creation of defense production partnerships, the interconnection of the defense industries of the two countries, and the exchange of know-how. It also includes initiatives to strengthen cybersecurity, protect critical infrastructure, and cooperate on new technologies.
The naval dimension is gaining particular importance, with India strengthening its presence in the Eastern Mediterranean through regular warship visits and joint training, while search-and-rescue protocols are being promoted.
Equally important is the interconnection between the two countries through existing agreements: the 2022 Memorandum of Understanding for defense cooperation, the Bilateral Defense Cooperation Program 2025, and the Republic of Cyprus's participation in AERO India 2025, which opened new avenues for co-investments and technological cooperation.
Interconnectivity – Cyprus' position in IMEC
The two countries agreed to strengthen their participation in the India–Middle East–Europe Economic Corridor (IMEC), the new trade and energy corridor that aspires to transform connectivity between Asia, the Middle East, and Europe.
Cyprus, due to its geographical position as a gateway to the EU, is seeking a stronger role in the maritime arm of IMEC, while encouraging a greater presence of Indian shipping companies in Cypriot ports and in joint ventures in the maritime services sector.
Trade, investment, and innovation
India-Cyprus economic cooperation is evolving, with an increasing diversity of sectors and closer interconnections among private businesses, universities, and start-ups. The Action Plan foresees the establishment of a Cyprus-India Business Forum, business missions, and a Memorandum of Cooperation in areas such as artificial intelligence, digital infrastructure, and scientific research.
Five years of trade flows
The data show that, despite fluctuations, trade volume remains stable at $160–200 million. India's exports peaked in 2021–22, while its imports from Cyprus increased significantly in 2022–23.
Main products of bilateral trade
Cyprus: 9th largest investor in India
With cumulative investments of $15.76 billion since 2000, Cyprus remains the ninth largest foreign investor in India. Investments focus on IT, automotive, real estate, logistics, shipping, and pharmaceuticals.
The revised Double Taxation Avoidance Agreement (DTAA) now offers transparency and tax security. At the same time, Cyprus has Category-I Foreign Portfolio Investor status, which places it among the top gateways for capital inflows to India.
Institutional cooperation mechanisms
India-Cyprus relations are based on a series of institutional platforms, such as the Joint Economic Committee (JEC), the Cyprus–India Business Association, the Invest Cyprus – Invest India MoU, the Limassol-Larnaca regional partnerships with Indian states, as well as the new India–Greece–Cyprus Business and Investment Council for trilateral synergies in the fields of shipping, infrastructure and technology.
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