Cyprus Shows Interest in Joining IMEC Corridor

Cyprus Shows Interest in Joining IMEC Corridor

Why in News?

Recently, during an India visit, Cyprus has expressed its keen interest in joining the India-Middle East-Europe Economic Corridor (IMEC), viewing it as a strategic opportunity to strengthen its position as a gateway to Europe and a hub for trade and logistics.

What is the India–Middle East–Europe Economic Corridor (IMEC)?

• About: The India–Middle East–Europe Economic Corridor (IMEC) is a major trans-continental connectivity initiative that links India, the Middle East, and Europe. It involves multiple countries such as India, the United Arab Emirates (UAE), Saudi Arabia, Israel, and members of the European Union (EU). 

• History: It was formally announced on 9 September 2023, during the 2023 G20 Summit in New Delhi through a Memorandum of Understanding (MoU), which was signed by India, the UAE, Saudi Arabia, the EU, France, Germany and Italy. Following the announcement, on 13 February 2024 India and UAE entered an Intergovernmental Framework Agreement (IGFA) to operationalise the corridor logistics platform.

• Objectives: IMEC is designed with several key objectives:

• • • To reduce transit time and logistics costs for trade between India, the Gulf region and Europe by providing alternative routes and multimodal connectivity. 
    • To diversify supply chains and reduce dependence on traditional chokepoints (such as the Suez Canal) by providing an alternate corridor linking Asia and Europe via the Middle East. 
    • To promote sustainable infrastructure, incorporating green energy, digital connectivity and modern logistics in a region spanning continents. 
    • To enhance regional economic integration by linking markets, boosting investment, generating jobs, and strengthening inter-regional cooperation.

• Segments: The corridor is structured into two geographic segments and transport modes:

• East Corridor: This segment connects India with the Arabian Gulf region through ports, railways and highways. 
• North Corridor: This segment extends from the Gulf region to Europe, linking ports, rail and road across the Middle East into Europe.

• Pillars: There are three foundational pillars underpinning IMEC:

• • • Transportation pillar: This covers rail lines, ports, roads and logistics hubs that will form the physical backbone of the corridor. 
    • Energy & infrastructure pillar: This pillar targets inter-continental electricity grids, clean hydrogen pipelines, and other energy infrastructure across the regions.
    • Digital & innovation pillar: This pillar focuses on fiber-optic cables, telecommunications, smart logistics and digital platforms to support the corridor’s operations.

• Challenges: Despite the promise, IMEC faces several challenges:

• • Geopolitical risks in the Middle East region, including conflicts, may affect stability, timelines and investment flows. 
  • Financing and coordination among multiple countries, each with their own regulatory and infrastructural frameworks, pose complexity.  
  • Implementation risks, such as aligning transport modes, energy infrastructure, digital networks and customs/logistics procedures across borders — all these require high-level coordination.
  • Competition and route selection issues: European port-terminals and routes are contested among countries, which can slow decision-making and raise costs.

Relationship between Cyprus & India

• Diplomatic Relations: The Republic of India and the Republic of Cyprus established formal diplomatic relations on 10 February 1962. India supported Cyprus’s independence and has consistently endorsed the resolution of the Cyprus issue based on United Nations resolutions. Cyprus has also supported India on key international issues including India’s membership aspirations in various multilateral forums.

• High-Level Visits: In June 2025, Indian Prime Minister Narendra Modi visited Cyprus from 15-16 June for high level talks with Cypriot President Nikos Christodoulides. The visit marked the first by an Indian Prime Minister to Cyprus in over twenty years. The leaders agreed on a five-year cooperation roadmap to deepen ties in strategic areas.

• Defence Cooperation: India and Cyprus strengthened their defence cooperation during 2022-2025. Both the countries signed a Bilateral Defence Cooperation Programme (BDCP) in January 2025 and also committed to institutionalising information exchange in areas of counter-terrorism, drugs and arms trafficking.

• Economic Cooperation: Trade and investment form an important component of the India-Cyprus relationship. During April 2023 to March 2024, bilateral trade amounted to about US$ 136.96 million. Indian exports to Cyprus include pharmaceuticals, textiles, machinery and chemicals. Cyprus exports to India include pharmaceuticals and manufactured goods. The two countries signed a Double Taxation Avoidance Agreement (DTAA) on 18 November 2016 in Nicosia. In February 2025 India, Cyprus and Greece launched the India-Greece-Cyprus Business & Investment Council to boost trilateral cooperation in infrastructure, shipping, technology, finance and small and medium enterprises.

Strategic Significance of the India–Cyprus Relationship for India 

• • Gateway to Europe: Cyprus offers India a reliable entry-point into Europe. The island is a member of the European Union and enjoys strategic access to European markets. For India this means greater reach for trade, investment and connectivity beyond South Asia.

• Geostrategic Counterbalance: India views Cyprus as a partner that helps balance influence in the Eastern Mediterranean. Cyprus has a complex relationship with Turkey, which aligns in certain military and regional postures contrary to India’s interests. The June 2025 joint declaration from Cyprus and India reaffirmed support for sovereignty, maritime rights and rules‐based order.

• Support on Global Forums: Cyprus has offered diplomatic backing to India’s positions in international institutions. It has expressed understanding of India’s position on the Kashmir issue. Cyprus supports India’s candidature for a permanent seat on the UN Security Council and backs India’s stand on cross-border terrorism. India’s growing partnership with Cyprus also challenges the Turkey–Pakistan alliance.

• Security Cooperation: India’s strategic partnership with Cyprus gains importance in defence and maritime domains. The two countries agreed on a Bilateral Defence Cooperation Programme in January 2025 and committed to cyber- and maritime-security dialogues in June 2025.