India-EU FTA by year-end: PM Narendra Modi in Cyprus

Prime Minister Narendra Modi has embarked on a five-day visit covering three countries, beginning with Cyprus, a member of the European Union. Speaking at the India-Cyprus CEO Forum held in Limassol, PM Modi stated that India and the EU aim to finalise a free trade agreement by the end of the year.

PM Modi, along with the President of Cyprus Nikos Christodoulides, held a roundtable interaction with business leaders from Cyprus and India in Limassol. The participants represented diverse sectors such as banking, financial institutions, manufacturing, defence, logistics, maritime, shipping, technology, innovation, digital technologies, AI, IT services, tourism and mobility.

At the business roundtable meeting in Cyprus, PM Modi highlighted GIFT City as a rising global financial hub. He welcomed the collaboration between NSE and the Cyprus Stock Exchange at GIFT City.

Highlighting India's economic transformation over the last 11 years, PM Modi noted that India, propelled by next-generation reforms, policy predictability, stable polity and Ease of Doing Business, has become the fastest-growing major economy in the world.

Emphasising the primacy being given to innovation, digital revolution, start-up and futuristic infrastructure development, PM Modi expressed confidence that India, the fifth largest economy in the world, was well positioned to become the third largest in a few years’ time. He noted that steady growth in India’s civil aviation, ports, shipbuilding, digital payments and green development sectors have opened myriad opportunities for companies from Cyprus to partner with India. He further underlined the strengths of India’s skilled talent and start-up ecosystem and highlighted manufacturing, AI, Quantum, semiconductor and critical minerals as new and emerging areas contributing to India’s growth story.

The prime minister noted that Cyprus was a significant economic partner for India, particularly in the Foreign Direct Investment sector and welcomed the keen interest in Cyprus for new investments into the Indian economy. At the business meeting, NIPL (NPCI International Payments Ltd) and the Eurobank Cyprus reached an understanding on introducing UPI for cross-border payments between the two countries which would benefit tourists and businesses.

Prime Minister Modi also welcomed the launch of the India-Greece-Cyprus (IGC) Business and Investment Council, which will foster trilateral cooperation in sectors such as shipping, logistics, renewable energy, civil aviation and digital services. Prime Minister Modi welcomed the fact that many Indian companies see Cyprus as a gateway to Europe and hub for IT services, financial management, and tourism.

As Cyprus prepares to assume the Presidency of the EU Council next year, the two leaders reaffirmed their commitment to further strengthen India-EU Strategic Partnership. They expressed optimism about concluding the India-EU Free Trade Agreement by end of the year which would also give a major boost to trade and economic cooperation between the two countries. The prime minister underlined that the business roundtable had given practical suggestions which would form the basis for a structured economic roadmap, ensuring long-term collaboration in trade, innovation and strategic sectors.