Deputy Minister pitches island to Indian tech firms

Cyprus is stepping up efforts to deepen economic and innovation ties with India, presenting itself as a reliable business partner and gateway to Europe, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou told a roundtable at the ICC Global Business Summit in Mumbai this week.

He said Cyprus’ economy was stable and resilient, with “one of the best performances in the EU,” pointing to its business-friendly environment, its geostrategic location at the crossroads of three continents and its role as a pillar of regional stability and humanitarian aid.

Damianou noted that relations between Cyprus and India were “deep and timeless” but had evolved rapidly in recent years, now extending into technology, shipping, tourism and investment.

Since his last visit a year ago, he said the partnership had entered a more dynamic phase with Indian companies choosing Cyprus as a base for new activities.

As Damianou mentioned, “that momentum gained historic significance when Indian Prime Minister Narendra Modi visited Cyprus in June, the first such visit in more than two decades.”

The Deputy Minister stressed that Cyprus remained a reliable partner, highlighting the resilience of its economy despite regional challenges.  

For Indian businesses seeking to expand into Europe, he said Cyprus was “a natural partner and an ideal testing ground for emerging technologies,” offering an ecosystem suited to artificial intelligence, fintech and digital services.

India’s global leadership in technology and its fast-growing economy, he added, created strong opportunities for joint ventures, talent exchange and partnerships.

He recalled that Cyprus is the eighth largest source of foreign direct investment in India, while India ranks among the top ten investors in Cyprus.

This two-way flow, he said, reflected the trust already built between the two economies and showed the scope for further joint development. 

Turning to connectivity, Damianou described initiatives such as the India-Middle East-Europe Economic Corridor (IMEC) as the natural next step.  

“Cyprus is ideally positioned to be India’s first entry point into Europe and a reliable transit hub,” he said, adding that IMEC could strengthen supply chains and improve access to markets across Europe, the Middle East and Asia.

He also promoted Cyprus’ incentives for investors, noting that technology was the fastest-growing pillar of the economy, expanding at double-digit rates.

With more than 800 tech firms, a startup ecosystem ranked 40th in the 2025 StartupBlink index, and incentives including Europe’s most attractive IP Box regime, R&D tax breaks and mobility programmes, he said Cyprus provided a dynamic environment for growth.

Indian technology firms were already taking notice, Damianou added, citing LTI Mindtree’s AI & Digital Centre in Cyprus as an example, along with Fairfax’s investment in Eurobank and the launch of Europe’s first active voice AI platform on the island.

At the same time, he pointed out that Cypriot companies had a unique chance to expand into India, a market of scale and innovation, saying that “a large business delegation from Cyprus was present in Mumbai, representing sectors such as technology, space, financial services and consulting, underlining the private sector’s readiness to work with Indian partners.”

Damianou said a bilateral memorandum of understanding on innovation and emerging technologies was in the final stages, while a trilateral Cyprus-India-Greece Business and Investment Council had been launched in fields ranging from shipping and logistics to renewable energy, aviation and digital services.

He also referred to progress through the NPCI International-Eurobank Cyprus deal, which enables UPI-based cross-border payments and makes Cyprus only the second country in Europe to offer the service. 

“The government is firmly committed to creating an environment that facilitates high-impact investments and positions Cyprus at the forefront of technological innovation,” Damianou said.

He urged Indian companies to see Cyprus not only as a gateway to Europe, but also as a partner with whom they could co-create sustainable growth and global operations.

Finally, Damianou stressed that as Cyprus prepares to assume the EU Council presidency next year, it was determined to strengthen the India-EU strategic partnership and to help advance the long-pending India-EU free trade agreement.