India-EU Free Trade Agreement on the Horizon
Prime Minister Narendra Modi has announced optimistic plans to finalize a free trade agreement (FTA) between India and the European Union by the end of 2025. Speaking during his official visit to Cyprus, Modi emphasized the untapped potential to boost economic collaboration between India and the Mediterranean island nation, which is gearing up to hold the EU presidency in 2026.
Cyprus to Prioritize Enhanced EU-India Relations
Cyprus, fostering robust ties with India through their shared Commonwealth membership, expressed its commitment to deepening bilateral cooperation. President Nikos Christodoulides highlighted Cyprus's strategic position as a pivotal entry point into Europe and a transshipment hub, offering enhanced logistics and trade opportunities for Indian businesses expanding into European markets.
Mutual Goals for Trade and Connectivity
Addressing the press alongside President Christodoulides, PM Modi confirmed ongoing efforts to conclude a "mutually beneficial India-EU trade agreement" by the year's end. This agreement is anticipated to open new avenues for trade and investment, fueling growth on both sides.
Furthermore, Modi reaffirmed the strategic significance of the India-Middle East-Europe Corridor, a multimodal initiative connecting the regions through sea and rail routes. He described this corridor as a pathway to foster peace and prosperity across the connected geographies, noting shared aspirations amidst current geopolitical challenges.
Strategic Importance of Cyprus in India's Global Trade Strategy
With Cyprus taking the helm of the EU's rotating six-month presidency in early 2026, the country aims to prioritize enhanced EU-India partnerships. Its role as a gateway to Europe offers significant logistical advantages, potentially expediting trade flows and strengthening economic linkages.
The visit underscores India's broader ambition to diversify trade partnerships and amplify its global economic footprint, leveraging bilateral ties and multilateral platforms.
Looking Ahead
- India and the EU are targeting the closure of an FTA agreement by the end of 2025.
- Cyprus will focus on elevating EU-India relations during its EU presidency starting 2026.
- The India-Middle East-Europe Corridor is seen as a cornerstone for regional connectivity and peace.
As these developments unfold, both India and Cyprus appear poised to deepen economic collaboration, setting a promising course for expansive trade and diplomatic engagement in the coming years.
