The business delegation that accompanied President Christodoulidis to India has returned with tangible investment interest and the prospect of new commitments in the months ahead, according to Marios Tannousis, CEO of Invest Cyprus, who took part in the mission.
"It was perhaps the best trade and business delegation ever undertaken by the Republic of Cyprus abroad," Tannousis told Politis. More than 40 Cypriot companies joined the president, alongside Invest Cyprus, the Cyprus Chamber of Commerce and Industry (CCCI) and other business associations.
The groundwork for the visit was laid last June, when Indian Prime Minister Modi visited Cyprus, giving fresh impetus to cooperation between Cypriot and Indian companies and reinforcing Cyprus's role as a gateway to the European Union for Indian businesses. Memoranda of understanding signed between the economic bodies of both countries during the visit are expected to make investment and business engagement easier by bringing the relevant institutions closer together.
Why Indian companies choose Cyprus
Tannousis outlined the factors drawing Indian investors to the island. Beyond the tax framework, which he described as one of Cyprus's most important competitive advantages, he pointed to longstanding bilateral ties, shared administrative systems and the widespread use of English on both sides. Geography also plays a role: India is increasingly focused on energy and trade corridors, and Cyprus sits at the intersection of the Mediterranean and the European single market. Additional attractions include Cyprus's low intellectual property tax rate, the ease of doing business and the availability of qualified human capital.
The sectors attracting the most interest are technology, which Tannousis described as among the most significant in recent years, and research and innovation, closely linked to education and universities. Interest also extends to renewables, health, tourism, financial services and fintech, with some Indian companies already operating in Cyprus. One of India's largest dairy companies has expressed interest and sent representatives to Cyprus to evaluate investment prospects. In the wellness sector, one of India's leading companies has indicated interest in developing a world-class wellness resort on the island.
"The momentum and the number of companies interested in operating and investing in Cyprus is quite large, and that is particularly encouraging," Tannousis said.
Foreign investment and the domestic economy
On the contribution of foreign investment to the Cypriot economy, Tannousis cited research by the University of Cyprus showing that the annual flow of foreign investment contributes approximately 4.4% to domestic employment, underscoring its importance to the local labour market. The technology sector alone now employs more than 30,000 workers, and between 2023 and August 2024, nearly 21,000 residence permits were issued to skilled workers in that sector. This growth has a strong multiplier effect and stimulates broader demand, he noted.
Tannousis also emphasised that Cypriot businesses stand to benefit directly from the presence of foreign companies on the island, through partnerships, knowledge transfer and opportunities to expand abroad. Asked about geopolitical uncertainty, he said foreign investors show no concern about Cyprus's stability or security. Companies continue to operate, expand and hire without any discernible change compared with the period before the war in the Middle East.
A significant step from Eurobank
Tannousis singled out the opening of Eurobank's representative office in Mumbai, India's commercial capital, as a development with positive implications for Cyprus as well. The office will help promote Cyprus to Indian entrepreneurs by facilitating access to the EU. "With this move by Eurobank, Greece and Cyprus have entered the investment horizon of Indian businesses. We all know that without banks nothing can move, so this is very significant. We congratulate Eurobank. An important step has been taken, it will support our strategy and it is already producing results," he said.
