Prime Minister Narendra Modi and Cyprus President Nikos Christodoulides agreed on Friday, 22 May to elevate bilateral relations to a strategic partnership, with deeper cooperation in the defence industry and transport connectivity topping the agenda at their New Delhi meeting, according to senior government officials.

Defence Cooperation Takes Centre Stage

Cyprus has formally expressed interest in procuring defence equipment from India and wants the two countries' defence industries to collaborate directly, officials said. President Christodoulides reportedly highlighted that the European Union is channelling more than 150 billion euros through the SAFE instrument to bolster defence and security across member states, of which Cyprus is eligible for 1.2 billion euros.

To advance this, both sides agreed that India's Defence Minister will visit Cyprus in the near future to discuss specific products of interest and the framework for bilateral defence industry engagement. This would mark a significant escalation from the existing Security and Defence Partnership already in place between the two nations.

Direct Flights and Transport Links in the Works

On connectivity, the relevant Transport Minister is set to hold discussions with Air India and IndiGo on launching direct flights between the two countries. Officials noted that both carriers have shown interest, and direct air connectivity is expected to be established by the end of 2025.

This comes amid a broader push to deepen people-to-people and business ties. Cyprus is also set to open a trade office in Mumbai from 1 September this year and will deploy additional senior diplomats to its mission in New Delhi.

Economic and Financial Integration

Indian companies already operating in Cyprus enjoy full access to the European market across defence, manufacturing, and technology sectors, with Cyprus serving as a strategic gateway. In a notable financial development, Eurobank has opened its first representative office in Mumbai and is working to integrate UPI — India's unified payments interface — into its systems. UPI is expected to go live in Cyprus next year, initially for Indian users and eventually for non-Indian users as well.

The Cyprus Presidency launched the year with an announcement of a Free Trade Agreement in January, and both sides are now working with the European Commission to finalise legal documents for signing at the earliest. Negotiations are also under way on an Investment Protection Agreement and cooperation on climate and security projects.

Cultural Ties and Sectoral Dialogues Planned

In a lighter but symbolically significant development, the first Bollywood film to be shot in Cyprus has been announced, with filming of the romantic production set to begin in June 2025 and a theatrical release targeted for 14 February 2026. Planned sectoral engagements for 2026 include a maritime security dialogue, a cyber dialogue, a counter-terrorism dialogue, and a Green Hydrogen Task Force.

With the Defence Minister's visit imminent and trade infrastructure expanding on both sides, the India-Cyprus partnership is moving from diplomatic warmth to structural depth.