PM of India Makes Landmark Visit to Cyprus
General Studies Paper II: Bilateral Groupings & Agreements, Effect of Policies & Politics of Countries on India’s Interests |
Why in News?
Prime Minister Narendra Modi’s recent visit to Cyprus marked a strong move to expand India’s influence in the Mediterranean region. His meetings with President Nikos Christodoulides focused on expanding cooperation in defence, trade, and maritime security.
- India’s Prime Minister visited Cyprus after a gap of 23 years, marking the first top-level Indian leadership visit in over two decades
- The Indian PM received the Grand Cross of the Order of Makarios III, Cyprus‘s top civilian award.
Key Highlights of PM of India Makes Landmark Visit to Cyprus
- Defence and Security Cooperation:
- India and Cyprus decided to enhance their defence cooperation following discussions held during PM Modi’s official tour.
- Both countries condemned terrorism and promised to work together on counter-terrorism efforts.
- They also decided to cooperate in cyber security, defence technology, and maritime security.
- Regional Connectivity Support:
- Cyprus said it would help India use the India–Middle East–Europe Economic Corridor (IMEC).
- India, Cyprus, and Greece started a new Trilateral Council to work together in areas like shipping, digital technology, and logistics.
- UPI Services in Cyprus:
- India’s NPCI signed an agreement with Eurobank Cyprus to launch UPI-based cross-border payment services. This move will help both citizens and tourists make payments easily across borders.
- GIFT City:
- The Cyprus Stock Exchange became the first European exchange to link with India’s GIFT City. This connection will support cross-border investments.
- Environmental Goals:
- Both PM Modi and President Christodoulides gave their support to the 2024 Apia Commonwealth Ocean Declaration during the meetings.
- Cyprus hosted the first Commonwealth Ocean Ministers Meeting in April 2024, where they opened the Blue Charter Centre of Excellence to train other countries on ocean care.
- Support for Cyprus Sovereignty:
- India clearly stated its support for Cyprus’ sovereignty. PM Modi expressed his backing for a UN-supported peace initiative that suggests forming a bizonal federation in Cyprus.
- Boost EU–India Relations:
- Cyprus has pledged to aid India in strengthening ties with the European Union.
- They also support continuing work through the EU–India Trade and Technology Council and extending the Strategic Roadmap beyond 2025.
- Five-Year Action Plan:
- Both India and Cyprus will implement a shared Action Plan from 2025 to 2029. This plan lists key goals and areas of cooperation.
- India promised to invest $2 billion in Cyprus’s clean energy and IT sectors.
India–Cyprus Bilateral Ties
- Diplomatic Relations:
- India officially began its diplomatic relationship with Cyprus in 1962, following Cyprus’s independence in 1960.
- India was one of the first countries to support Cyprus at international forums, especially in the United Nations.
- India has continuously backed UN-led efforts for a bizonal, bicommunal federation to reunify the island.
- Cyprus has supported India’s bid for a permanent seat on the UN Security Council.
- Trade and Investment:
- Cyprus has been a source of foreign direct investment (FDI) in India, especially in real estate, financial services, and information technology.
- According to the Department for Promotion of Industry and Internal Trade (DPIIT), Cyprus invested over USD 9 billion in India between April 2000 and March 2023.
Introduction to Cyprus: Location, Economy, and Unique Identity
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Historical Background of Cyprus
- Early Civilisations:
- Cyprus has a history dating back over 10,000 years, making it one of the oldest inhabited islands in the world.
- Neolithic communities first settled on the island around 8200 BCE, using stone tools and farming techniques. Over centuries,
- Cyprus attracted ancient Greeks, Phoenicians, Assyrians, and Egyptians due to its rich copper resources and strategic location in the eastern Mediterranean.
- By 1400 BCE, the island had become a major center of trade and culture between Europe, Asia, and Africa.
- Rule Under Empires:
- The Roman Empire controlled the island from 58 BCE, introducing roads, architecture, and Christianity.
- Later, the Byzantine Empire held the island for many centuries.
- In 1571, the Ottoman Empire took over, after defeating Venetian forces.
- The Ottomans ruled Cyprus for about 300 years, during which the population began to split along Greek and Turkish ethnic lines, a division that would later become central to its political history.
- Rise of Nationalism:
- In 1878, Cyprus came under British administration, though it remained officially part of the Ottoman Empire until 1914, when Britain formally annexed it during World War I.
- The Treaty of Lausanne (1923) confirmed British sovereignty. During British rule, Greek Cypriots began demanding enosis, or union with Greece, while Turkish Cypriots supported partition or continued British rule.
- Intercommunal Conflict:
- Cyprus became an independent republic in 1960 under the Zurich-London Agreements signed by Britain, Greece, and Turkey.
- The new constitution tried to balance power between the Greek and Turkish communities.
- In 1963, constitutional disputes triggered violence and division, leading to the withdrawal of Turkish Cypriots from the government.
- By 1964, the United Nations deployed peacekeeping forces (UNFICYP), which still operate on the island today.
- The Division of the Island:
- A major turning point came in July 1974, when the Greek military backed a coup in Cyprus to force union with Greece.
- In response, Turkey invaded the northern part of Cyprus, citing its role as a guarantor power. This led to the division of the island into two parts — the Turkish Cypriot north and the Greek Cypriot south.
- Since then, Cyprus has remained physically and politically divided, with the “Green Line” buffer zone separating the two sides.
- In 1983, Turkish Cypriots declared the Turkish Republic of Northern Cyprus (TRNC), a state recognised only by Turkey.
Strategic Gains for India from Cyprus Partnership
- India Counters Turkey-Pakistan: India’s growing partnership with Cyprus quietly challenges the Turkey–Pakistan alliance, especially as Turkey has regularly spoken against India on Kashmir. By deepening cooperation with Cyprus—a country in direct conflict with Turkey over territorial issues—India sends a clear diplomatic message.
- Strategic Gateway in IMEC: Cyprus’s location in the eastern Mediterranean Sea places it at a key junction for trade routes connecting India, the Middle East, and Europe. As part of the India-Middle East-Europe Economic Corridor (IMEC), Cyprus offers port access and logistics support for faster cargo movement. This positioning helps India reduce reliance on longer shipping lanes and improves connectivity with European markets.
- Boost for India–EU Political Relationship: Cyprus will take over the Presidency of the Council of the European Union in 2026, giving India a chance to push key agreements like the India–EU Free Trade Agreement (FTA). Cyprus has promised to support India’s efforts in trade and technology at the EU level. This opens a path for India to expand economic influence in Europe.
Strategic Maritime Presence: By working with Cyprus, India also gains a maritime partner in a critical naval zone. The eastern Mediterranean region hosts key sea lanes that are vital for global trade. Cyprus’s ports and proximity to West Asia and Europe offer India a chance to enhance maritime cooperation.