Explained: India-EU FTA, Turkey Signal, Trade Push – Why PM Modi’s Cyprus Visit Is A 'One Arrow, Many Targets' Masterstroke

Prime Minister Narendra Modi's visit to Cyprus on June 15–16, 2025, is a carefully planned diplomatic move that holds long-term importance for India. This is the first time in more than two decades that an Indian Prime Minister is visiting Cyprus, which makes the visit both symbolic and strategic.

The timing and nature of the visit show India's intent to strengthen its relations with Cyprus, a country that has consistently supported India in international matters.

Reconnecting with a Long-Time Friend

Cyprus has always been a trusted friend of India. It has supported India's bid for a permanent seat at the United Nations Security Council and backed the India-US Civil Nuclear Agreement in international platforms like the Nuclear Suppliers Group and the IAEA.

By visiting now, India is returning the goodwill and reinforcing this friendship for the future.

Cyprus Will Soon Lead the EU

Cyprus is going to play an important role in Europe very soon. In the first half of 2026, Cyprus will take over the Presidency of the Council of the European Union.

This means it will help shape and guide important EU decisions. During Prime Minister Narendra Modi’s official visit to Cyprus, both countries made it clear that they want to work closely together, especially when it comes to trade.

Modi said that India is hoping to finalise a free trade agreement with the European Union by the end of this year. “We are working on finalising a mutually beneficial India-EU trade agreement by the end of this year,” Modi said during a press conference with Cypriot President Nikos Christodoulides.

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He also said that there are “unlimited possibilities” to grow economic ties with Cyprus, a country India shares warm ties.

Key Player in India-Europe Trade Corridor (IMEC)

Cyprus will be important not just for the India-EU trade deal, but also for a major infrastructure project known as the India-Middle East-Europe Economic Corridor (IMEC). This project aims to connect India to Europe through the Middle East using sea and rail routes. Cyprus, located in the eastern Mediterranean, is in a key position on this route.

Modi highlighted this in his statement, saying, “We agree the India-Middle East Europe Corridor will pave the way for peace and prosperity in the region.”

Cyprus, on its part, is also eager to support India’s plans. President Christodoulides said Cyprus could become India’s first entry point to Europe and serve as a major transhipment hub for goods.

He also promised that once Cyprus takes over the EU Presidency, it will focus on strengthening ties with India. “A strengthening of EU-India relations will be among the priorities of the Cypriot EU presidency,” he said.

Both leaders agreed that now is the right time to deepen cooperation and take the India-Cyprus partnership to new levels, especially in trade, connectivity, and diplomacy.

Sending a Strong Message to Turkey

There is also a geopolitical aspect to the visit. Cyprus has long-standing tensions with Turkey, which invaded and divided the island in 1974. Today, the northern part of Cyprus is controlled by Turkish-backed forces, while the internationally recognised Republic of Cyprus is in the south.

It also sends an indirect message to Turkey, which has openly supported Pakistan on the Kashmir issue and supplied drones used in recent cross-border attacks on India.

Partnership Against Terrorism

The visit is also aimed at boosting cooperation on global issues like terrorism. In his departure statement, PM Modi mentioned that the trip is an opportunity to thank partner countries for their support against terrorism and to build a shared understanding on tackling it.

Cyprus shares India’s concerns about regional security and peace, which makes it a reliable partner in fighting terrorism at international platforms.

Expanding Economic and Business Opportunities

Economically, the visit opens the door for more trade and investment opportunities. PM Modi will meet business leaders in Limassol, a key economic hub in Cyprus. The country offers strengths in sectors like shipping, financial services, tourism, education, and technology.

India could benefit from more investments and business collaborations that connect Indian companies to European markets.