India-Cyprus relations are the bilateral ties between the Republic of India and the Republic of Cyprus, an island state in the eastern Mediterranean and a member of the European Union, and they combine a shared Non-Aligned heritage, growing investment and financial links, shipping cooperation, and mutual support on security and United Nations questions. The two countries have enjoyed warm relations since Cyprus became independent in 1960, and India has consistently supported Cyprus’s sovereignty, independence and territorial integrity.
India-Cyprus relations have gained fresh attention in recent years because Cyprus is a gateway to Europe, a major maritime centre and a stable partner in a turbulent region. This explainer describes how the ties formed, how they work in practice across trade, finance, shipping and security, and the sensitivities that surround them.
| Attribute | Detail |
|---|---|
| Countries | India and the Republic of Cyprus |
| Cyprus independence | 16 August 1960, from British rule |
| Diplomatic relations | Established in the early 1960s, with resident missions in Nicosia and New Delhi |
| Cyprus’s capital | Nicosia |
| Cyprus in the EU | Joined the European Union on 1 May 2004; adopted the euro in 2008 |
| Shared heritage | Both countries are Non-Aligned Movement members; Cyprus’s first president, Archbishop Makarios III, was a prominent NAM voice |
| Tax treaty | Double Taxation Avoidance Agreement of 1994, amended by a protocol in 2016 |
| Key sectors | Investment and financial services, shipping, tourism, information technology, security and counter-terrorism dialogue |
Key Takeaways
- India-Cyprus relations date to Cyprus’s independence in 1960 and are rooted in the Non-Aligned Movement, in which both countries have been active members.
- India supports the sovereignty, independence and territorial integrity of Cyprus and backs a negotiated settlement of the Cyprus question in line with United Nations Security Council resolutions.
- Cyprus is one of the larger sources of recorded foreign direct investment into India, partly because investors use Cyprus-based companies to hold Indian assets.
- Cyprus hosts one of Europe’s largest ship-management centres at Limassol, and Indian seafarers form an important part of the global crews on Cyprus-linked vessels.
- The India-Cyprus tax treaty of 1994 was amended in 2016 to allow India to tax capital gains from the sale of shares, a change that reshaped investment routing through Cyprus.
- Prime Minister Narendra Modi visited Cyprus in 2025, the first Indian prime ministerial visit to the island in more than two decades, which gave the partnership new political momentum.
How did India-Cyprus relations begin?
India-Cyprus relations began with Cyprus’s independence from Britain on 16 August 1960, when India welcomed the new republic and the two states soon exchanged diplomatic missions. India’s leaders had long taken an interest in Cyprus because of the shared British colonial experience and the leadership of Archbishop Makarios III, the island’s first president, who became a prominent figure in the Non-Aligned Movement.
Cyprus was a founding participant in the Non-Aligned Movement, whose first summit took place at Belgrade in 1961 under the guidance of leaders such as Jawaharlal Nehru. Cooperation in this period took the form of political solidarity, support in international forums, and sharing of views on decolonisation and disarmament.
Indian soldiers and diplomats also had direct contact with the island through the United Nations. After the 1964 intercommunal violence, the UN established a peacekeeping force on the island, the United Nations Peacekeeping Force in Cyprus (UNFICYP), and Indian officers served in it at various points, including a well-known Indian commander. This added a practical dimension to the political relationship.
What is India’s position on the Cyprus question?
India’s position on the Cyprus question is that the island should be reunified through a negotiated settlement that respects the sovereignty, independence and territorial integrity of the Republic of Cyprus, in line with United Nations Security Council resolutions. The Cyprus question stems from 1974, when a Greek-inspired coup was followed by a Turkish military intervention, leaving the island divided between the internationally recognised Republic of Cyprus in the south and a Turkish Cypriot-administered area in the north.
The northern entity declared itself the Turkish Republic of Northern Cyprus in 1983. The United Nations Security Council, through resolutions such as 541 (1983) and 550 (1984), called that declaration legally invalid, and only Turkey recognises it. India has not recognised the northern entity and has supported UN-led efforts for a settlement based on a bizonal, bicommunal federation, which is the framework the UN has long pursued.
This stance fits India’s general commitment to territorial integrity and its own concerns about separatism and external interference. It also means that Indian policy on Cyprus is closely tied to the broader context of India’s relations with Turkey, which has often taken positions on Kashmir that India rejects. Analysts note that these dynamics have contributed to closer Indian ties with Cyprus and Greece, though the Indian government generally describes each bilateral relationship on its own merits.
How do India and Cyprus cooperate in trade and investment?
India and Cyprus cooperate in trade and investment mainly through services, financial structures and shipping rather than through large goods trade. Direct merchandise trade is modest, well below one billion US dollars a year, and consists of items such as pharmaceuticals, engineering goods, textiles and agricultural produce from India, and a smaller range of products from Cyprus.
Investment is the more significant side. Cyprus has often ranked among the top ten sources of foreign direct investment into India in official statistics. The main reason is that many international investors, including some of Indian origin, have used Cyprus-based holding companies for their Indian holdings, owing to a favourable treaty position and a well-developed professional services sector. The recorded figures therefore reflect the location of the investment vehicle and not necessarily the national origin of the money.
The 2016 tax protocol
India and Cyprus signed a Double Taxation Avoidance Agreement in 1994. In 2013 India notified Cyprus as a jurisdiction with inadequate information-sharing, which imposed extra compliance on transactions with it. Following negotiations, the two countries signed an amending protocol in November 2016. It allowed India to tax capital gains arising from the sale of shares of Indian companies, with transition provisions from April 2017, and improved the exchange of tax information. After the protocol, Cyprus was removed from the notified list.
Why is Cyprus important in shipping and maritime links?
Cyprus is important in shipping because it is a global ship-management centre, with a large registry and a cluster of management companies at Limassol that oversee fleets owned by firms around the world. The Cyprus flag is among the larger merchant-ship registries in the European Union, and the island is often described as the EU’s leading third-party ship-management hub.
India is connected to this ecosystem in at least three ways.
- Seafarers: India is one of the largest suppliers of merchant seafarers in the world, and Indian officers and crew serve on many ships managed from Cyprus.
- Trade routes: Cyprus sits close to the Suez Canal route, which carries a significant share of India’s trade with Europe and the Mediterranean.
- Ports and logistics: Ports at Limassol and Larnaca are used for trans-shipment and regional services, and Cyprus has been discussed as a Mediterranean node in proposals for the India-Middle East-Europe Economic Corridor (IMEC), although the corridor’s progress remains uncertain.
Cyprus has also served as a safe transit point for evacuating Indian nationals from conflict zones in the region, for example during the 2006 Lebanon crisis under India’s Operation Sukoon, when Indian citizens were moved through Cyprus. This humanitarian role has been remembered in Indian diplomacy.
What does security and counter-terrorism cooperation involve?
Security cooperation between India and Cyprus involves political consultation, counter-terrorism dialogue, defence and maritime-security contacts, and shared concern over regional stability in the eastern Mediterranean. The scale is limited, but it has attracted attention because of the strategic context.
The two countries have generally spoken in similar terms against terrorism, and Cyprus has condemned major terrorist attacks in India. They share an interest in maritime security, freedom of navigation under the United Nations Convention on the Law of the Sea (UNCLOS), and orderly management of sea routes that link Asia and Europe.
Observers sometimes link the relationship to the wider eastern Mediterranean, where Cyprus, Greece, Israel, Egypt and others cooperate on energy and security, and where Turkey disputes maritime boundaries. India’s government has avoided taking sides in these disputes in formal terms, emphasising the law of the sea and peaceful resolution. Readers should therefore view claims of a formal strategic alignment with caution.
How do India and Cyprus work together at the United Nations?
India and Cyprus work together at the United Nations through mutual support on core questions, coordination on issues such as terrorism and climate, and shared membership in many UN bodies. Cyprus has generally supported India’s aspiration for a permanent seat in a reformed UN Security Council and has backed India’s membership bid for the Nuclear Suppliers Group.
India, for its part, has consistently supported UN Security Council resolutions on Cyprus and has taken part in UN peacekeeping on the island. Both countries are active in the Commonwealth, to which Cyprus has belonged since independence, which gives them another venue for regular contact.
Cyprus also held the rotating presidency of the Council of the European Union in the second half of 2012, and again is scheduled for the first half of 2026, during which it can shape EU agenda items on the Mediterranean and migration. Such periods give India an opportunity to engage Cyprus on EU matters, including trade negotiations.
What have recent high-level visits achieved?
Recent high-level visits have raised India-Cyprus relations from a quiet friendship to a more visible partnership, with agreements and declarations on cooperation in investment, defence, technology, culture and connectivity. President Ram Nath Kovind visited Cyprus in the late 2010s as part of a European tour, and Cypriot leaders have visited India on several occasions, including state and business visits.
Prime Minister Narendra Modi’s visit to Cyprus in June 2025 was the first by an Indian prime minister in over two decades, following Atal Bihari Vajpayee in 2002 and Indira Gandhi in 1982. The visit highlighted shipping, finance, defence cooperation and economic connectivity, and the Cypriot government honoured Modi with its highest civilian distinction. Details of specific agreements should be checked against official releases because they are updated over time.
| Milestone | Year | Significance |
|---|---|---|
| Cyprus independence | 1960 | India recognises the new republic; diplomatic ties follow |
| Non-Aligned Movement founding summit | 1961 | Both countries part of the Non-Aligned group |
| Double Taxation Avoidance Agreement | 1994 | Treaty framework for investment and income |
| Cyprus joins the EU | 2004 | Cyprus becomes India’s partner within the European Union |
| Tax treaty protocol | 2016 | Capital gains taxation at source and better information exchange |
| Indian presidential visit | Late 2010s | Political boost and business engagement |
| Indian prime ministerial visit | 2025 | First such visit in over two decades |
What are the people-to-people and cultural links?
People-to-people links between India and Cyprus include a small but active Indian community, student and professional exchanges, tourism and cultural events. The Indian community in Cyprus numbers a few thousand people, working in hospitality, shipping, information technology, healthcare, domestic services and trade. Indian restaurants, festivals such as Diwali and the International Day of Yoga are visible parts of the island’s multicultural life.
Cyprus is a popular destination for Indian tourists seeking beaches, history and Mediterranean cuisine, and for students, partly because several English-medium private universities operate on the island. Cultural cooperation has been supported through the Indian Council for Cultural Relations (ICCR), through exchange programmes and through Indian films and dance performances. Direct air connectivity between India and Cyprus has been limited, so flights typically run through hubs in the Gulf or Europe, and expanding connections would help both tourism and business.
What challenges and opportunities lie ahead?
The main challenges facing India-Cyprus relations are the small scale of direct trade, the effect of regional geopolitics on the eastern Mediterranean, and the continuing division of the island. The main opportunities are in financial services, shipping, renewable energy and natural gas, digital technology, tourism and cooperation within an India-EU framework.
Challenges
- Merchandise trade is small, and a large share of the recorded relationship is financial.
- Cyprus’s financial services sector has faced scrutiny over past money-laundering concerns and the 2013 banking crisis, and ongoing compliance with EU rules is essential.
- Regional tensions involving Turkey, Greece and the Cyprus dispute can complicate diplomacy.
- Lack of direct flights limits business and tourism.
Opportunities
- Connectivity projects, including links to proposed India-Middle East-Europe corridors.
- Cooperation in energy, including offshore gas in the eastern Mediterranean and renewable power.
- Indian information-technology and fintech firms using Cyprus as an EU base.
- Collaboration in maritime education and training, building on India’s seafarer strength.
- Deeper diplomatic coordination at the UN and in the Commonwealth.
Bottom Line
India-Cyprus relations are cordial, long-standing and increasingly purposeful. Shared Non-Aligned roots, a common emphasis on sovereignty and international law, and complementary strengths in finance, shipping and talent provide a solid base, though the relationship will stay modest in trade volume and sensitive to regional politics.
Frequently Asked Questions
When did India and Cyprus establish diplomatic relations?
India and Cyprus established diplomatic relations in the early 1960s, soon after Cyprus became independent from Britain on 16 August 1960. Both countries have resident diplomatic missions in each other’s capitals. The relationship was strengthened by the shared Non-Aligned outlook.
What is India’s stand on the Cyprus issue?
India supports the sovereignty, independence and territorial integrity of the Republic of Cyprus and a negotiated settlement under United Nations auspices. It follows UN Security Council resolutions that treat the 1983 declaration of a northern state as invalid. India does not recognise the Turkish Republic of Northern Cyprus.
Why is Cyprus a big source of FDI in India?
Cyprus ranks high in recorded foreign investment in India because many investors hold Indian assets through Cyprus-based companies. The statistics record where the investing entity is based, not always the final source of funds. The 1994 tax treaty and Cyprus’s professional services sector encouraged this routing.
What changed in the India-Cyprus tax treaty in 2016?
The 2016 protocol changed the treaty so that India can tax capital gains from the sale of shares in Indian companies by Cyprus residents, with transition rules from April 2017. It also improved the exchange of tax information. After the protocol, Cyprus was taken off India’s list of notified jurisdictions that lacked adequate information sharing.
How does shipping connect India and Cyprus?
Shipping connects India and Cyprus because Cyprus is a major EU ship-management centre at Limassol and India supplies a large number of the world’s seafarers. Many Indian officers and crew serve on vessels managed from Cyprus. Cyprus also lies on the sea route linking India to Europe through the Suez Canal.
Has an Indian prime minister visited Cyprus?
Yes, Prime Minister Narendra Modi visited Cyprus in June 2025, the first Indian prime ministerial visit in more than two decades. Earlier Indian prime ministers to visit were Atal Bihari Vajpayee in 2002 and Indira Gandhi in 1982. President Ram Nath Kovind also visited in the late 2010s.
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