India and Cyprus are moving to reinvigorate their six-decade partnership, placing fresh emphasis on economic resilience, strategic cooperation, and technology-driven development. The two sides have begun detailed consultations on the India–Cyprus Joint Action Plan 2025–29 — a framework intended to guide policy coordination, widen commercial opportunities, and expand engagement across emerging sectors. For businesses on both sides, this shifting landscape signals a more predictable investment environment and an expanded set of avenues for cross-border collaboration.
High-Level Diplomacy Sets the Tone
Cyprus’ Foreign Minister, Constantinos Kombos, visited New Delhi from 29 to 31 October 2025, marking his first official trip to India. In discussions with India’s External Affairs Minister, Dr S. Jaishankar, the two leaders reviewed bilateral ties, assessed progress on the Joint Action Plan, and exchanged views on regional and global developments. The visit followed a significant milestone earlier in the year, when Prime Minister Narendra Modi travelled to Cyprus in mid-June 2025. During that visit, both governments endorsed a comprehensive five-year roadmap aimed at intensifying political dialogue, strengthening defence cooperation, and deepening trade and investment partnerships.
A Structured Five-Year Roadmap
The India–Cyprus Joint Action Plan 2025–29 introduces a more systematic mechanism for cooperation, including regular high-level political consultations and coordinated oversight by the Cypriot Ministry of Foreign Affairs and India’s Ministry of External Affairs. Its central pillars cover security collaboration, economic engagement, innovation partnerships, and improved connectivity.
Defence, Security and Crisis Cooperation
Defence and security cooperation has emerged as a core element of the partnership. Both countries are sharpening their focus on strategic and technological collaboration in response to evolving regional security dynamics.
Key areas of priority include:
- Defence industry collaboration: Joint exploration of manufacturing partnerships, technology co-development, and industry linkages aimed at strengthening strategic autonomy.
- Cybersecurity and emerging technologies: Greater cooperation on cyber resilience, safeguarding digital infrastructure, and advancing defence-related technologies.
- Maritime security: Enhanced naval engagement through regular port calls by Indian vessels, joint maritime training programmes, and improved coordination on maritime domain awareness across the Mediterranean and the Indo-Pacific.
- Crisis and SAR cooperation: Development of mechanisms for joint evacuation efforts and coordinated search-and-rescue operations.
These initiatives build upon earlier commitments, such as the 2022 defence cooperation MoU, the Bilateral Defence Cooperation Programme for 2025 finalised in January this year, and the participation of a Cypriot delegation at AERO India 2025, which opened doors to new industry partnerships and technology exchanges.
Connectivity and Regional Integration
Recognising the complementarity of their geostrategic positions, India and Cyprus have expressed shared support for the India–Middle East–Europe Economic Corridor (IMEC). With Cyprus situated as a natural maritime bridge to Europe, both sides are encouraging greater participation of Indian shipping companies in Cypriot ports and exploring joint maritime ventures that could expand Mediterranean connectivity.
Trade, Investment and Innovation Partnerships
Economic cooperation — long a steady pillar of bilateral relations — is now being scaled up through deeper trade engagement and targeted innovation partnerships. The Action Plan includes provisions for:
- A high-level Cypriot business delegation’s visit to India
- Establishment of a Cyprus–India Business Forum
- Dedicated business roundtables to promote sector-specific collaboration
- Joint initiatives in startups, academia and R&D
- A proposed MoU focusing on artificial intelligence, digital infrastructure, and scientific research
Cyprus continues to be one of India’s most significant investment partners. According to official data, cumulative Cypriot FDI into India reached US$15.76 billion between January 2000 and June 2025, placing the island nation among India’s top ten sources of equity inflows. These investments have largely flowed into IT and software services, automobile manufacturing, real estate and infrastructure, logistics, maritime activities, and pharmaceuticals.
Institutional Mechanisms Underpinning Economic Engagement
A series of long-standing and newly created platforms supports the expanding commercial footprint between the two countries:
- The Joint Economic Committee (JEC), established in 1989, remains the principal forum for trade and industrial discussions.
- The Cyprus-India Business Association (CIBA) facilitates regular industry outreach and networking.
- The Invest India–Invest Cyprus MoU (2021) provides a foundation for coordinated investment promotion and business facilitation.
- Regional partnerships now connect Limassol and Larnaca with Goa and Bengaluru, strengthening SME links and fostering localised business cooperation.
- The India–Greece–Cyprus Business and Investment Council, launched in 2025, aims to develop trilateral cooperation in infrastructure, technology, maritime services, and innovation.
A Partnership Entering a New Phase
As both nations sync their strategic and economic priorities, India and Cyprus appear poised for a more ambitious phase of cooperation. The Joint Action Plan for 2025–29 provides a clear and structured framework, backed by political intent and expanding business interest. With momentum building across defence, connectivity, technology, and investment, the India–Cyprus partnership is on track to grow more multidimensional and more consequential in the years ahead.
