Indian Prime Minister Narendra Modi has arrived in Cyprus, marking the primary go to by an Indian Prime Minister to the nation in over 20 years. Throughout this go to, discussions are anticipated to cowl a number of key areas, together with commerce relations and the combination of India’s UPI system.
Observers counsel that PM Modi’s go to might elevate issues in Turkey. Notably, throughout India’s anti-terrorism marketing campaign Operation Sindoor, Turkey brazenly supported Pakistan, a stance that strained relations with New Delhi.
Regular Commerce Ties Amid Fluctuations
Based on India’s Ministry of Exterior Affairs, bilateral commerce between India and Cyprus has seen fluctuations however remained steady lately. For the interval from April 2023 to March 2024, the commerce quantity stood at roughly USD 136.96 million.
A Strategic Sign to Turkey
Analysts view PM Modi’s Cyprus go to as a possible counterbalance to the rising ties between Turkey and Pakistan. Although the Indian authorities has not made any official assertion to this impact, the timing and selection of vacation spot are seen as important.
Longstanding tensions between Cyprus and Turkey date again to Turkey’s 1974 invasion, which led to the division of the island. Cyprus is a European Union member, whereas Turkey solely acknowledges the Turkish Republic of Northern Cyprus (TRNC). Studies counsel that Modi’s go to — and any potential tour of the UN buffer zone — might be interpreted as India signaling its help for Cyprus towards Turkish expansionism.
A Diplomatic Setback for Pakistan?
The go to additionally aligns with India’s broader diplomatic technique to isolate Pakistan internationally. Cyprus has constantly supported India on delicate points, together with Kashmir, terrorism, and UN Safety Council reforms. In April, Cyprus condemned the terrorist assault in Pahalgam, Jammu & Kashmir, and dedicated to elevating the matter on the EU stage.
Why Cyprus Issues to India
Strategically positioned within the Jap Mediterranean and geographically in Asia whereas having fun with EU membership, Cyprus affords India each financial and geopolitical benefits. The island’s proximity to Turkey and Syria additional enhances its significance in regional affairs.
In a major financial growth, Eurobank, considered one of Cyprus’ largest banks, not too long ago introduced plans to open an workplace in Mumbai. This transfer is predicted to spice up monetary cooperation between the 2 nations. Based on The Instances of India, Cyprus’ superior monetary companies sector, favorable tax regime, and robust delivery business current engaging alternatives for Indian companies eyeing the European market.
Moreover, Cyprus holds strategic worth for India’s connectivity ambitions beneath the India-Center East-Europe Hall (IMEC), because the island varieties a crucial hyperlink within the rising power and commerce routes connecting the areas.