Will India Become World’s 3rd Largest Economy? Here’s What PM Modi Said During His Cyprus Visit

Prime Minister Narendra Modi, during his visit to Cyprus on June 15, 2025, projected a confident vision for India’s economic future, stating that the country is on track to become the world’s third-largest economy in the coming years.

This was PM Modi’s first visit to Cyprus in 23 years by any Indian prime minister, and he made the remarks during a high-level business roundtable in Limassol alongside Cypriot President Nikos Christodoulides.

India’s Economic Rise

PM Modi emphasised that India, currently the fourth-largest economy, has undergone a major transformation over the past 11 years. He attributed this to consistent next-generation reforms, policy predictability, a stable political environment, and improvements in ease of doing business.

"India will soon become the third-largest economy in the world. We are one of the biggest emerging economies. Over the years, we have implemented tax reforms, introduced the Goods and Services Tax (GST), rationalised corporate taxes, decriminalised several outdated laws, and shifted our focus toward the ‘trust of doing business’,” Modi said at the event.

He also highlighted the role of digital innovation in India’s rapid rise. With over 50% of global digital transactions taking place in India, thanks largely to the success of the Unified Payments Interface (UPI), Modi noted that discussions are ongoing to bring UPI-based digital payment systems to Cyprus as well.

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He welcomed the collaboration between NPCI International Payments Limited (NIPL) and Eurobank Cyprus, which will pave the way for cross-border UPI transactions to benefit tourists and businesses.

Opportunities For Cyprus In India’s Growth Story

PM Modi invited Cypriot businesses to explore vast investment opportunities in India’s booming sectors, including civil aviation, shipbuilding, ports, green development, and digital technologies. He stressed that India’s talent pool, start-up ecosystem, and strategic push in advanced areas like artificial intelligence, quantum computing, semiconductors, and critical minerals are accelerating growth.

He called Cyprus a trusted economic partner and pointed to the immense scope for expanding bilateral trade and investment. Cyprus is already a significant contributor to foreign direct investment in India, and Modi expressed optimism about further deepening that economic relationship.

"Cyprus has been a reliable partner to India for a long time now. There is huge potential for growth in our bilateral ties. The collaboration between our tour operators can also be a win-win, as both India and Cyprus are strong tourist destinations,” the Prime Minister said.

Key Economic Collaborations Announced

Several important initiatives were announced to boost India–Cyprus economic engagement. An MoU was signed between the NSE International Exchange at GIFT City, Gujarat, and the Cyprus Stock Exchange, strengthening ties in financial markets.

The launch of the India–Greece–Cyprus (IGC) Business and Investment Council aims to foster trilateral cooperation in areas such as shipping, logistics, renewable energy, civil aviation, and digital services. Modi also welcomed the fact that many Indian companies view Cyprus as a strategic gateway to Europe, particularly for IT services, finance, and tourism.

India-EU FTA and Strategic Partnership

Looking ahead, PM Modi and President Christodoulides reaffirmed their commitment to strengthening the India-EU Strategic Partnership, especially as Cyprus prepares to assume the Presidency of the EU Council in 2026.

Both leaders expressed hope that the India-EU Free Trade Agreement (FTA) will be concluded by the end of 2025, a move expected to further boost trade and cooperation.

NSE International Exchange At GIFT City Signs MoU With Cyprus Bourse

Business Roundtable Between CEOs And PM Modi

The business roundtable saw participation from CEOs and leaders across diverse sectors, including banking, defence, shipping, digital technologies, manufacturing, and tourism. Modi remarked that the practical suggestions from the roundtable will serve as the foundation for a structured and long-term economic roadmap between India and Cyprus.

“With shared aspirations and a future-focused approach, India and Cyprus are poised for a new era of dynamic and mutually beneficial economic cooperation,” the prime minister concluded.

In a post on social media after the event, PM Modi said, “Boosting business linkages! President Christodoulides and I interacted with leading CEOs to add vigour to commercial ties between India and Cyprus. Sectors such as innovation, energy, technology and more offer immense potential. I also talked about India’s reform trajectory in the last decade.”