President Ram Nath Kovind recently embarked on a tri-nation visit to Europe, beginning with Cyprus. During the visit, Memorandums of Understanding were signed towards fortifying mutual financial and environmental co-operation. Alongside this, the emphasis was laid over the importance of Cyprus’ membership in key organizations including the Nuclear Suppliers Group (NSG) and United Nations Security Council (UNSC). The visit also underscored Cyprus’ strategic position as a member of the European Union and its significance for Indian investors.
Cyprus: A Crucial Ally for India’s NSG Ambitions
With its membership in the 48-member Nuclear Suppliers Group (NSG), Cyprus holds an integral position in supporting India’s bid to gain entry into the NSG. This group is dedicated to reducing nuclear proliferation by controlling the export and re-transfer of materials that could potentially be used in nuclear weapons development. As such, obtaining membership of the NSG has significant implications for India’s nuclear program.
UNSC Reforms: Cyprus’ Support for India
In addition to the NSG, Cyprus has voiced its support for the reform of the UN Security Council (UNSC). The country has publicly endorsed India’s bid for a permanent seat in a reformed UNSC. This seat would give India greater influence and standing on the global stage, particularly in matters related to international peace and security.
Cyprus as a Gateway to the European Union
Cyprus, being a member of the European Union since 2004, holds strategic importance for India. The nation is part of the Eurozone, which consists of EU countries that have adopted the Euro as their currency. Due to its geographical location and political ties, Cyprus can act as a key base for Indian industries looking to invest in the European Union.
India-Cyprus Economic Relations
India’s economic ties with Cyprus are substantial. The cumulative Foreign Direct Investment (FDI) from Cyprus to India is estimated at USD 9.2 billion, making Cyprus the eighth largest investor in India. This significant FDI reflects the strength of the economic and investment relationship between these two nations.
The Republic of Cyprus: An Overview
The Republic of Cyprus is located in the Eastern Mediterranean and is the third-largest and most populous island in the Mediterranean region. In 1974, the island was divided into North and South Cyprus following a military coup backed by Greece, which led to an invasion by Turkey. Despite this division, Cyprus remains an essential partner for India in Europe due to its strategic position and strong bilateral ties.