India will soon become the third-largest economy in the world, Prime Minister Narendra Modi has said, highlighting myriad economic opportunities the country offers to companies from Cyprus.
Modi, who is in Cyprus on the first leg of his three-nation tour, made the remarks as he, along with Cypriot President Nikos Christodoulides, attended a business roundtable on Sunday in Limassol, a city on the southern coast of Cyprus.
The Prime Minister highlighted India’s rapid economic transformation in the last 11 years and noted that the country, propelled by next-generation reforms, policy predictability, stable polity and Ease of Doing Business, has become the fastest-growing major economy in the world, the External Affairs Ministry in New Delhi said in a statement.
Emphasising the primacy being given to innovation, digital revolution, start-ups and futuristic infrastructure development, he expressed confidence that India, the fifth largest economy in the world, was well positioned to become the third largest in a few years’ time.
“India will soon become the third-largest economy in the world. India is one of the biggest emerging economies. We have implemented tax reforms, Goods and Services Tax, rationalised corporate tax, decriminalised laws, and are focusing on ‘trust of doing business’, along with ease of doing business.” He said that steady growth in India’s civil aviation, port, shipbuilding, digital payments and green development sectors has opened myriad opportunities for companies from Cyprus to partner with India, the statement said.
“For the first time in 23 years, an Indian Prime Minister has visited Cyprus, and the first event that has been organised is the business roundtable meeting. This shows the importance of business leaders in the India-Cyprus relationship,” the Prime Minister said.
He also underlined the strengths of India’s skilled talent and start-up ecosystem and highlighted manufacturing, AI, quantum, semiconductor and critical minerals as new and emerging areas contributing to India’s growth story.
“You all (business leaders) are aware of India’s talent and demographic dividend. In the last 10 years, a digital revolution has taken place in India. Around 50 per cent of the world’s digital transactions take place in India, thanks to the Unified Payments Interface or UPI. Countries like France are associated with this, and talks are also underway with Cyprus for this, and I welcome this move,” he said. Prime Minister noted that Cyprus was a significant economic partner for India, particularly in the Foreign Direct Investment sector and welcomed the keen interest in Cyprus for new investments into the Indian economy. Modi highlighted the “immense potential for growth” in bilateral ties.
Cyprus has been a “reliable partner to India for a long time now,” he said.
Modi called Cyprus a “famous tourist destination” and added that India, too, is focusing on destination development and management, and so, “close collaboration between our tour operators will be a ‘win-win'”.
He added that many other sectors also have the potential for such collaborations.
Highlighting the potential for business engagement in the financial services sector, the two leaders welcomed the signing of an MOU between the NSE International Exchange GIFT CITY, Gujarat and the Cyprus Stock Exchange, the statement said.
NIPL (NPCI International Payments Limited) and the Eurobank Cyprus reached an understanding on introducing UPI for cross-border payments between the two countries, which would benefit tourists and businesses, it said.
Prime Minister also welcomed the launch of the India–Greece–Cyprus (IGC) Business and Investment Council, which will foster trilateral cooperation in sectors such as shipping, logistics, renewable energy, civil aviation and digital services.
Prime Minister welcomed the fact that many Indian companies see Cyprus as a gateway to Europe and a hub for IT services, financial management, and tourism.
As Cyprus prepares to assume the Presidency of the EU Council next year, the two leaders reaffirmed their commitment to further strengthen India-EU Strategic Partnership, the statement said.
They expressed optimism about concluding the India-EU Free Trade Agreement by the end of the year which would also give a major boost to trade and economic cooperation between the two countries.
Prime Minister underlined that the business roundtable had given practical suggestions which would form the basis for a structured economic roadmap, ensuring long-term collaboration in trade, innovation and strategic sectors, he added.
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 statement said. The participants of the roundtable represented diverse sectors such as banking, financial institutions, manufacturing, defence, logistics, maritime, shipping, technology, innovation, digital technologies, AI, IT services, tourism and mobility.
In a post on X after the meeting, Modi said, “Boosting business linkages! President Nikos Christodoulides and I interacted with leading CEOs in order to add vigour to commercial linkages between India and Cyprus.” “Sectors like innovation, energy, technology and more offer immense potential. I also talked about India’s reform trajectory in the last decade,” he added.