The National Payments Corporation of India (NPCI) and Eurobank of Cyprus have signed a memorandum of understanding (MoU) to introduce Unified Payments Interface (UPI) services in Cyprus for cross-border transactions that will benefit tourists and businesses.
This was one of the key business outcomes from Prime Minister Narendra Modi’s visit to Cyrus, which concluded on Monday with the two sides agreeing on measures to ramp up cooperation in trade and investment.
The NSE International Exchange at Gujarat’s Gift City also signed an MoU withthe Cyprus Stock Exchange to enable cross-border flows. The agreement is expected to benefit investors in Gift City, Cyprus and Europe, officials said.
India and Cyprus are exploring easier cross-border payments through UPI integration, Tanmaya Lal, secretary (West) in the external affairs ministry, told a media briefing on Monday. “With its strategic location, Cyprus can act as a gateway to Europe and the Mediterranean…Our partnership is becoming increasingly multifaceted. The economic content, especially in the financial sector, is growing,” he said.
Cyprus has emerged as one of the top 10 sources of foreign direct investment (FDI) for India, with cumulative inflows of $15 billion. A business roundtable co-chaired in Limassol on Sunday by Modi and Cypriot President Nikos Christodoulides came up with a roadmap for enhancing economic linkages.
The roundtable attracted business leaders of Cyprus and India from sectors such as banking, manufacturing, defence, logistics, shipping, technology, digital technologies, AI and mobility.
Modi highlighted India’s next-generation reforms, policy predictability and stable polity and pointed to the importance being given to innovation, digitalisation, start-ups and futuristic infrastructure. He said the steady growth in India’s civil aviation, ports, shipbuilding and digital payments sectors has opened up opportunities for companies from Cyprus.
Describing Cyprus as a significant economic partner for India, particularly for FDI, Modi highlighted the potential for business engagement in financial services. He welcomed the launch of the India-Greece-Cyprus Business and Investment Council to foster trilateral cooperation in shipping, logistics, renewable energy, civil aviation and digital services.
While trade between India and Cyprus has shown a positive trajectory, flows were impacted by the Covid-19 pandemic and two-way trade was worth $137 million during 2023-24. Key Indian exports to Cyprus include pharmaceuticals, textiles, iron and steel, machinery and chemicals.
