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Prime Minister Narendra Modi's recent visit to Cyprus marks a significant step in strengthening bilateral relations and fostering economic cooperation between India and the European Union. This visit, the first by an Indian Prime Minister to Cyprus in over two decades, underscores the importance India places on its relationship with the island nation and its role as a gateway to Europe. The focal point of the visit was Modi's address at the India-Cyprus CEO Forum in Limassol, where he highlighted India's transformation into a hub of digital innovation, infrastructure development, and economic opportunity. His emphasis on India's progress in digital payments, infrastructure investment, and startup ecosystem resonated with the assembled business leaders and signaled a clear intent to deepen economic ties. The commitment to concluding a free trade agreement between India and the European Union by the end of the year further solidified this ambition. This agreement, if realized, would have far-reaching implications for trade and investment flows between the two regions, unlocking new opportunities for businesses on both sides. Modi's visit also served as a platform to showcase India's economic reforms and its attractiveness as an investment destination. He pointed to the significant strides made in digital payments, with India now accounting for 50% of the world's digital transactions through UPI. The success of UPI has attracted interest from other countries, including France, and discussions are underway to include Cyprus in the network. This highlights India's leadership in digital innovation and its willingness to share its expertise with other nations. Furthermore, Modi highlighted India's substantial investments in infrastructure, particularly in maritime and port development, shipbuilding, shipbreaking, and civil aviation. The annual investment of over USD 100 billion in these sectors reflects India's commitment to modernizing its infrastructure and creating a more conducive environment for businesses to operate. The introduction of a new shipbuilding policy further demonstrates India's focus on developing its maritime sector and attracting investment in this area. India's burgeoning startup ecosystem was also a key theme of Modi's address. He emphasized that India's more than 1 lakh startups are not just selling dreams but providing real solutions to problems. This highlights the entrepreneurial spirit and innovative capacity of India's youth and the potential for these startups to contribute to economic growth. The establishment of the India, Cyprus and Greece Business and Investment Council was welcomed as a crucial step in fostering trilateral economic cooperation. This council provides a platform for businesses from the three countries to connect, share ideas, and explore potential partnerships. Modi assured business leaders that their suggestions would be taken forward through a concrete action plan, demonstrating India's commitment to translating dialogue into tangible outcomes. The agreement between the Cyprus Stock Exchange and India's National Stock Exchange to cooperate in GIFT City, Gujarat, further strengthens financial ties between the two countries. This cooperation will facilitate cross-border investment and provide opportunities for businesses to access capital markets in both India and Cyprus. Modi extended an invitation to Cypriot investors and business leaders to explore the opportunities available in India, underscoring the government's commitment to attracting foreign investment and fostering economic growth. His statement that there is momentum in the negotiations for a free trade agreement between India and the European Union provides a sense of optimism that a deal can be reached by the end of the year. This would be a major achievement, opening up new markets for Indian businesses and creating opportunities for European companies to invest in India. In conclusion, Prime Minister Modi's visit to Cyprus was a success, strengthening bilateral relations, promoting economic cooperation, and paving the way for a potential free trade agreement between India and the European Union.
The potential Free Trade Agreement (FTA) between India and the European Union represents a significant opportunity for both economies. For India, the FTA would provide access to a large and affluent market, boosting exports and attracting foreign investment. The EU is already one of India's largest trading partners, and an FTA would further enhance trade flows between the two regions. The agreement would also help to diversify India's export basket, reducing its reliance on traditional export markets. For the EU, the FTA would provide access to a rapidly growing market with a large and young population. India's economy is expected to continue to grow strongly in the coming years, making it an attractive destination for European businesses. The agreement would also help to reduce trade barriers and create a more level playing field for European companies operating in India. However, negotiations for the FTA have been ongoing for several years, and there are still some outstanding issues to be resolved. These include issues related to tariffs, intellectual property rights, and investment protection. It is important that both sides are willing to compromise in order to reach a mutually beneficial agreement. If an FTA is successfully concluded, it would have a significant positive impact on both economies. It would boost trade, investment, and economic growth, creating new jobs and opportunities for businesses on both sides. The FTA would also strengthen the strategic partnership between India and the European Union, promoting closer cooperation on a range of issues.
Beyond the immediate economic benefits, Prime Minister Modi's visit to Cyprus and his emphasis on strengthening ties with the European Union reflect India's broader foreign policy objectives. India is increasingly looking to play a more prominent role on the global stage, and strengthening its economic and political ties with key regions like Europe is an important part of this strategy. The visit also underscores India's commitment to multilateralism and its willingness to work with other countries to address global challenges. India is a strong supporter of free trade and believes that it is essential for promoting economic growth and development. The potential FTA with the European Union is a testament to this commitment. In addition, India is also actively engaged in other trade negotiations with countries around the world. The country recognizes the importance of diversifying its trade relationships and reducing its dependence on any single market. Prime Minister Modi's visit to Cyprus, Croatia and Canada demonstrates India's proactive approach to foreign policy and its commitment to building strong relationships with key partners around the world. By strengthening its economic and political ties with these countries, India is well-positioned to play a leading role in shaping the global landscape. The focus on innovation, technology, and sustainable development also reflects India's priorities as a responsible global citizen. As India continues to grow and develop, it will play an increasingly important role in addressing global challenges such as climate change, poverty, and inequality. The country's commitment to sustainable development and its willingness to share its expertise with other nations make it a valuable partner in the global effort to create a more just and equitable world.
Source: India, EU committed to free trade agreement by year-end: PM Modi in Cyprus