History
The relationship between India and Cyprus has historical roots that stem from India's unwavering support for Cyprus during its fight for independence from British colonial rule. This support laid a solid foundation for diplomatic relations, which were officially established on 10 February 1962, a pivotal moment that occurred just two years following Cyprus's independence. The strong ties formed during this period have continued to evolve, fostering cooperation across various sectors.
India has actively participated in United Nations peacekeeping operations in Cyprus, showcasing its commitment to global peace and security. Since the inception of the United Nations Peacekeeping Force in Cyprus (UNFICYP) in 1964, Indian military personnel have played important roles in maintaining stability in the region. Notably, three Indian Generals have held the esteemed position of Commanders of UNFICYP, reflecting India's significant contribution to peacekeeping efforts. In honor of Major General Kodandera Subayya Thimayya, who served as Force Commander until his tragic passing in 1965, a road in Larnaca bears his name. Additionally, in 1966, Cyprus paid tribute to Thimayya by issuing a commemorative stamp, marking his invaluable service.
Cyprus has also shown strong support for India on the international stage, particularly regarding its participation in civil nuclear initiatives. The nation endorses the India–United States Civil Nuclear Agreement and advocates for India's inclusion within the Nuclear Suppliers Group (NSG) and the International Atomic Energy Agency (IAEA). These supportive gestures highlight a shared commitment to strategic partnerships and the promotion of peaceful nuclear energy utilization.
The diplomatic engagement has been further intensified through high-level visits. Prime Minister Atal Bihari Vajpayee made a significant visit to Cyprus in October 2002, during which the Cypriot government expressed its endorsement of India's bid for a permanent seat on the UN Security Council. This support was mirrored during President Pratibha Patil's visit to Cyprus in October 2009, and a reciprocal visit by President Tassos Papadopoulos to India in April 2006, all reflecting the growing diplomatic camaraderie between the two nations.
The cultural and personal ties between India and Cyprus deepen this relationship. The former First Lady of Cyprus, Lila Erulkar, born in Ahmedabad, was of Indian Jewish descent and had a remarkable family connection to Indian history as the daughter of Dr. Abraham Erulkar, who was Mahatma Gandhi's personal physician. Additionally, both nations have commemorated their leaders’ contributions to bilateral relations with physical tributes; a street in Nicosia named after Indira Gandhi, and an avenue in New Delhi named after Archbishop Makarios III, signify the recognition of the historical and ongoing connections between India and Cyprus.
Economic Relations
Bilateral trade between Cyprus and India reached a notable figure of EUR 76.5 million in 2015, reflecting the growing economic ties between the two nations. Cyprus imported goods worth EUR 64.5 million from India, while its exports to India amounted to EUR 11.1 million. A significant portion of this trade involved crucial raw materials such as steel and iron, underscoring the industrial interdependence between the two markets. This foundation provides an opportunity for further diversification of trade relations, encouraging both countries to explore other sectors such as pharmaceuticals, technology, and agricultural products.
From April 2000 to September 2015, Cyprus emerged as a prominent player in foreign direct investment (FDI) in India, with cumulative investments totaling $8.328 billion. This substantial investment made Cyprus the eighth largest FDI investor in the Indian market. Most notably, the primary focus of these investments has been in the construction and real estate sectors, capitalizing on India's rapid urbanization and infrastructural development. As a result, these investments not only contribute to economic growth in India but also create avenues for Cypriot enterprises to engage more deeply with a significantly large market.
Further strengthening the economic framework between the two nations, the Double Taxation Avoidance Agreement (DTAA) between Cyprus and India was revised in 2016. This revision serves to enhance bilateral trade and investment by alleviating the tax burdens on individuals and companies conducting business across borders. It promotes a more conducive environment for investors, thereby encouraging additional investment flows and fostering closer economic ties. As both countries look to the future, the potential for increased collaboration in various sectors remains promising, offering mutual benefits that can be realized through strategic partnerships and initiatives.
Indians in Cyprus
As of July 2015, the Indian diaspora in Cyprus was estimated at around 2,700 individuals. This diverse community plays a significant role in various sectors of the Cypriot economy. Notably, more than half of the Indian population in Cyprus is engaged in the cosmetics industry, reflecting a demand for skilled labor in this sector. In addition to cosmetics, many Indians contribute their expertise as computer engineers and software programmers, positioning themselves in the burgeoning tech landscape of the island. The shipping industry also employs a fair share of the Indian workforce, highlighting their versatility and adaptability across different fields.
The educational landscape for Indian students in Cyprus has undergone notable changes in recent years. In the academic year of 2010-11, approximately 900 Indian students were enrolled in private colleges across the country, drawn by the promise of quality education and diverse academic opportunities. However, this number saw a dramatic decline, dropping to less than 100 by 2015. This downturn can be largely attributed to the financial crisis that hit Cyprus, which severely impacted students' ability to secure part-time jobs essential for sustaining their living expenses. Consequently, the educational aspirations of many prospective Indian students were dampened as they sought more favorable conditions in other countries.
Despite these challenges, the Indian community in Cyprus continues to thrive and contribute meaningfully to the cultural and economic fabric of the nation. The resilient nature of this diaspora is evident in their ability to navigate and adapt to changing circumstances, ensuring that they remain an integral part of Cypriot society. The ongoing relationship between Cyprus and India serves not just as a means for mutual economic benefits but also fosters cultural exchange, enhancing the richness of life on the island for both locals and expatriates alike. The Cypriot government, recognizing the importance of the Indian community, has taken steps to promote better integration and support for foreign nationals, further solidifying these ties.
Recent Developments in Cyprus-India Relations
In a significant diplomatic meeting, Indian Prime Minister Narendra Modi recently engaged with the President of Cyprus, Nicos Anastasiades, in New York. This encounter came amid various global discussions, positioning both leaders to address key issues of mutual interest. One of the central themes of their dialogue was the commitment to enhance trade relations between India and Cyprus. This agreement aims not only to bolster economic exchanges but also to foster a climate of cultural interaction and people-to-people connectivity, which is vital for the citizens of both nations.
Both countries recognized the potential for increased trade partnerships, particularly in sectors such as information technology, tourism, and renewable energy. The synergy in these areas reflects both countries’ ambitions to grow their economies and create opportunities for their respective populations. By facilitating greater interaction between Indian and Cypriot businesses, they aspire to open new avenues for collaboration that can lead to mutual economic benefits.
In addition to trade discussions, Prime Minister Modi reaffirmed India's steadfast support for Cyprus regarding its territorial integrity. This reassurance is particularly pertinent in the context of Cyprus's long-standing issues concerning its partition and ongoing disputes. India's position is rooted in respect for international law and the principles of sovereignty and territorial integrity, reinforcing its role as a supportive partner on the global stage.
The enhanced Cyprus-India relationship is expected to extend beyond just trade and politics; there are also efforts to promote educational exchanges and cultural initiatives. Such endeavors aim to deepen understanding and friendship between the citizens of both nations, paving the way for a robust and enduring partnership. As both countries navigate their individual aspirations, the prospects for collaboration present a promising avenue for growth and stability in the region.