Indian firms eye Cyprus as base for European expansion

The landscape of bilateral trade has shifted as Cyprus and India move toward a more structured era of economic cooperation, following a high-profile summit in Mumbai that engaged over 450 industry leaders.

This gathering served as a catalyst for translating diplomatic goodwill into concrete commercial ventures across the technology, shipping, and financial sectors.

According to InBusiness, the event underscored a burgeoning appetite among Indian investors to utilise the island as a strategic gateway into the European Union.

Speaking to the Cypriot business outlet, industry experts noted that the event moved beyond theoretical discussions, focusing instead on practical applications for cross-border trade and investment.

Chrysilios Pelekanos of PwC Cyprus highlighted that the Indian business community now views Cyprus as a safe, attractive, and complementary destination for expansion into the European Union.

The synergy between the two nations is particularly strong in high-growth sectors such as artificial intelligence, research and development, financial services, and green shipping.

Petros Mavrommatis from KPMG emphasised that Cyprus is emerging as a critical geostrategic bridge connecting India with the Middle East and Europe, especially within the framework of the IMEC corridor.

Specific interest from Indian firms spans investment funds, regional headquarters, and real estate, supported by the island’s common-law legal system and widespread use of English.

To facilitate this influx, Bank of Cyprus has launched a dedicated “India Hub” to provide specialised banking products and support for corporate establishment and international transactions.

The summit also highlighted the upcoming EU-India free trade agreement as a major catalyst that will likely reduce tariffs and improve access to the services market.

Legal experts, including Andriana Efstathiou and Marios Menelaou, pointed out that enquiries from Indian firms have become increasingly targeted, focusing on compliance, operational presence, and tax planning.

The 2025 visit of the Indian Prime Minister has further accelerated this momentum, with many companies now actively evaluating the island for intellectual property exploitation and venture capital.

Transparency and predictability in these transactions are being bolstered by the existing foreign direct investment screening framework and a robust double taxation agreement.

The ultimate goal over the next 24 months is to convert this high level of interest into tangible projects with significant economic substance.

By establishing stable communication channels between professionals, Cyprus aims to solidify its status as a jurisdiction of choice for Indian companies seeking a reliable European base.

Strategic partnerships formed during the summit are expected to yield long-term benefits for supply chains, logistics, and maritime activity in both regions.