New Delhi [India], May 23 (ANI): Prime Minister Narendra Modi and Cyprus President Nikos Christodoulides on Friday reaffirmed their commitment to fully realizing the untapped economic potential of the ties between the two countries including through startups, digitalization, AI and innovation-driven enterprises.

In joint statement after their meeting here, the two leaders encouraged the business community in both countries to actively explore trade and investment opportunities in priority sectors including, inter alia, financial services, maritime, connectivity, logistics, clean and green energy, waste management, space, science & technology, and research and innovation.

The Leaders also highlighted the opportunities that will arise through the implementation of the historic India-EU Free Trade Agreement (FTA) concluded earlier this year.

Through Fintech connectivity, not only cross border transactions but also cross border connections will be strengthened. The Leaders noted the deepening of economic engagement in the financial sector, including the MoU signed between NIPL and Eurobank Cyprus in 2025. They also welcomed the establishment of a framework for interoperability of India's Unified Payments Interface (UPI) with Target Instant Payment Settlement System (TIPS System) of the European Central Bank (ECB), which will facilitate seamless cross-border transactions, benefiting both tourists and businesses of both the countries.

The two leaders also welcomed the growing momentum in trilateral and bilateral economic cooperation. In this context, they appreciated the establishment of the India-Greece-Cyprus (IGC) Business and Investment Council as an important platform for strengthening business-to-business linkages, promoting investment flows, and fostering collaboration among the three countries.

Building upon the momentum generated by the India-Cyprus investors roundtable held in Limassol in June 2025, an India-Cyprus Business Forum was organised in Mumbai during the visit which aimed at further strengthening the bilateral economic and commercial partnership as well as fostering new avenues of collaboration. The Leaders welcomed the signing of B2B MoUs on the sidelines of the Business Forum in Mumbai.

The Leaders welcomed continued collaboration between the startups, unicorns, innovation ecosystems and venture capital networks of the two countries. In this context, they welcomed the signing of an MoU on Innovation & Technology which would provide a framework for exchanges between startups, incubators, accelerators and the innovation agencies of both countries.

The Leaders noted the importance of maritime and shipping cooperation in strengthening trade and connectivity between the two countries, and for connecting the Indo-Pacific to Europe through trusted maritime partnerships. Recognizing Cyprus' role as a gateway to Europe and the potential to serve as a regional hub for transshipment, storage, distribution, and logistics, they encouraged strengthening of maritime cooperation through joint ventures involving Cyprus-based and Indian maritime service providers for mutual benefit. In this context, both Leaders agreed to take forward the positive momentum in maritime cooperation under the existing Bilateral Agreement on Merchant Shipping.

India and Cyprus on Friday signed a series of agreements and Memorandums of Understanding (MoUs) across sectors including counterterrorism, defence, innovation, education, culture, maritime cooperation and financial connectivity.

Briefing the media after delegation-level talks between PM Modi and President Christodoulides, Secretary (West) in the Ministry of External Affairs, Sibi George, said the visit marked 'an important milestone in India-Cyprus relations.'

'This visit is an important milestone in India-Cyprus relations, as the two leaders have decided to elevate the bilateral relations to the level of strategic partnership,' George said.

Among the key agreements signed was an MoU on establishing a Joint Working Group on Counterterrorism. The two countries also signed an MoU between the Sushma Swaraj Institute of Foreign Service and the Diplomatic Academy of Cyprus for diplomatic training cooperation.

An MoU on cooperation in higher education and research, along with another agreement on cultural collaboration and cooperation, was also exchanged during the visit.

George said India and Cyprus also signed an MoU on innovation and technology cooperation between Cyprus' Ministry of Research, Innovation and Digital Policy and India's Ministry of Electronics and Information Technology.

'Technology, innovation, AI, and space are also important areas on which discussions were held today,' he said, adding that both countries were looking at 'substantial collaborations including on cyber resilience, capacity building and secure digital ecosystems.'

The two sides also concluded a technical arrangement on Search and Rescue (SAR) cooperation in maritime matters, aimed at strengthening coordination in the sector.

In the defence sector, India and Cyprus agreed on a roadmap for bilateral defence cooperation for the period 2026-2031.

'Defence and maritime has emerged as a very important pillar in our engagement, which was reiterated today in the meetings,' George said.

He added that the bilateral defence cooperation programme signed earlier in Nicosia provides 'a structured framework for furthering our defence partnership.'

The two countries also announced the establishment of a Cyber Security Dialogue and a Consular Dialogue.

Cyprus joined the Indo-Pacific Oceans Initiative and will co-chair the Trade Connectivity and Maritime Transport pillar under the initiative.

In the area of financial connectivity, George said an MoU between the National Stock Exchange International Exchange at GIFT City and the Cyprus Stock Exchange would provide 'a framework for capital market cooperation.'

'Another important area of cooperation is in financial connectivity, which is gaining traction,' he said.

The senior MEA official also highlighted several business-to-business agreements signed during the visit, including MoUs between FICCI and the Cyprus Chamber of Commerce and Industry, CII and Cypriot industry bodies, and agreements involving the Society of Indian defence manufacturers and Cyprus' defence and space industry cluster.

The Institute of Chartered Accountants of India also signed an MoU with its Cypriot counterpart.

'Cyprus is the ninth largest source of FDI inflows to India and the second largest in the EU after Netherlands,' George said, adding that cumulative FDI inflows from Cyprus into India stood at around USD 16 billion since 2000.

He said investments from Cyprus span sectors such as services, software and hardware, automobile manufacturing, construction, shipping and pharmaceuticals. (ANI)