tech partner — Cyprus is emerging as a vital tech partner and gateway to Europe for India, as highlighted by Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou during a recent roundtable at the ICC Global Business Summit in Mumbai. He emphasised that Cyprus has a stable and resilient economy, boasting one of the best performances in the EU, and is well-equipped to support Indian businesses looking to expand into European markets.
Tech partner: Strengthening Economic Ties
During his address, Damianou noted that relations between Cyprus and India are “deep and timeless,” having evolved significantly in recent years to encompass technology, shipping, tourism, and investment. He pointed out that since his last visit to India a year ago, the partnership has entered a more dynamic phase, with Indian companies increasingly selecting Cyprus as a base for new initiatives.
Significance of Recent Developments
Damianou mentioned the historic visit of Indian Prime Minister Narendra Modi to Cyprus in June, marking the first such visit in over twenty years. This visit, he said, gained historic significance and underscored the growing collaboration between the two nations. The Deputy Minister reiterated that Cyprus is a reliable partner, highlighting the resilience of its economy in the face of regional challenges.
Cyprus as an Ideal Business Hub
For Indian businesses looking to penetrate the European market, Damianou described Cyprus as a “natural partner and an ideal testing ground for emerging technologies.” With a robust ecosystem conducive to artificial intelligence, fintech, and digital services, Cyprus presents numerous opportunities for collaboration, particularly in light of India’s global leadership in technology.
Investment Opportunities and Economic Collaboration
Cyprus ranks as the eighth largest source of foreign direct investment in India, while India stands among the top ten investors in Cyprus. This reciprocal flow of investment is indicative of the trust established between the two economies and the potential for further joint ventures.
Enhancing Connectivity through New Initiatives
Damianou also highlighted the India-Middle East-Europe Economic Corridor (IMEC) as a logical next step in enhancing connectivity. He stated, “Cyprus is ideally positioned to be India’s first entry point into Europe and a reliable transit hub,” suggesting that IMEC could significantly strengthen supply chains and improve access to European, Middle Eastern, and Asian markets.
Technological Growth and Incentives
With more than 800 tech firms and a startup ecosystem ranked 40th in the 2025 StartupBlink index, Cyprus is rapidly advancing as a technology hub. Damianou noted that the technology sector is the fastest-growing pillar of the Cypriot economy, expanding at double-digit rates. The government offers various incentives for investors, including Europe’s most attractive IP Box regime, R&D tax benefits, and mobility programmes.
Recognising Indian Investments in Cyprus
Indian technology firms have already begun to take notice of Cyprus’s potential. One example cited by Damianou is LTI Mindtree’s AI & Digital Centre, along with Fairfax’s investment in Eurobank and the launch of Europe’s first active voice AI platform on the island. These developments showcase the growing interest in Cypriot opportunities among Indian investors.
Cypriot Companies Eyeing Indian Market
On the flip side, Cypriot companies are also looking to expand into India, capitalising on the vast market and its innovative landscape. A large business delegation from Cyprus attended the summit in Mumbai, representing sectors such as technology, space, financial services, and consulting, demonstrating the private sector’s eagerness to collaborate with Indian partners.
Formalising Partnerships for Future Growth
Damianou mentioned that a bilateral memorandum of understanding on innovation and emerging technologies is in its final stages, while a trilateral Cyprus-India-Greece Business and Investment Council has been launched to explore opportunities in shipping, logistics, renewable energy, aviation, and digital services.
Advancements in Payment Systems
Progress has also been made through the NPCI International-Eurobank Cyprus deal, which facilitates UPI-based cross-border payments, making Cyprus only the second country in Europe to offer this service. Damianou expressed confidence that these advancements will further solidify Cyprus’s role as a key player in the India-EU partnership.
Commitment to Innovation and Growth
“The government is firmly committed to creating an environment that facilitates high-impact investments and positions Cyprus at the forefront of technological innovation,” Damianou stated, urging Indian companies to view Cyprus not merely as a gateway to Europe, but as a collaborative partner in sustainable growth and global operations.
Future Prospects of the Cyprus-India Partnership
As Cyprus prepares to assume the EU Council presidency next year, Damianou underscored the nation’s determination to strengthen the India-EU strategic partnership and advance the long-pending India-EU free trade agreement. The ongoing diplomatic and economic engagements signal a promising future for both Cyprus and India as they work collaboratively to harness mutual benefits.
