The business delegation that accompanied the President of the Republic to India returned to Cyprus bearing what can only be described as investment gifts, with strong Indian interest translating into expected new investments in the coming period.
The scale and substance of Indian companies’ interest in establishing a presence in Cyprus is analysed by the CEO of Invest Cyprus, Marios Tannousis, who took part in the mission and spoke to Politis.
“It may well have been the best commercial business mission ever undertaken abroad by the Republic of Cyprus,” he said. “More than 40 Cypriot companies participated alongside the President, as well as institutions such as Invest Cyprus, the Cyprus Chamber of Commerce and Industry, and other business associations.”
According to Tannousis, the visit of Indian Prime Minister Narendra Modi to Cyprus in June 2025 gave fresh momentum to cooperation between Cypriot and Indian companies, particularly with a view to using Cyprus as a gateway to the European Union.
In the interview, Tannousis also refers to the memoranda of understanding signed between economic bodies of the two countries, which facilitate business activity and investment by bringing institutions closer together. He also highlighted the importance of the political agreements signed during the visit.
Why India chooses Cyprus
Explaining why Indian companies are choosing Cyprus, Tannousis said that beyond the tax framework – one of the country’s most important competitive advantages – there are long‑standing bilateral relations and shared characteristics.
“These include common systems such as governance structures and language. Almost everyone speaks English, just as we do in Cyprus,” he noted.
He added that Cyprus’s geographical position is also critical, as India looks towards energy and trade corridors, with Cyprus serving as a gateway to the Mediterranean and the European Union.
Additional advantages include the very low tax rate on intellectual property rights, the ease of doing business and investing in Cyprus, and the availability of suitably skilled human capital.
Sectors of interest
As regards sectors attracting Indian interest, Tannousis said technology remains one of the most important areas, as has been evident in recent years. Research and innovation are also high on the agenda, closely linked to education and universities.
There is also investment interest in energy – particularly renewable sources – healthcare, tourism, financial services and fintech, with some companies already active in Cyprus.
He added that one of India’s largest dairy companies has expressed interest, with representatives already in Cyprus assessing investment prospects.
In the wellness sector, one of India’s largest companies has shown interest in developing a world‑class wellness resort in Cyprus.
“The momentum we are seeing and the number of companies interested in operating and investing here is quite substantial, and that is particularly encouraging,” he said.
Foreign investment impact
On the contribution of foreign investment to the economy, Tannousis noted that, according to a University of Cyprus study, annual foreign investment inflows contribute around 4.4 per cent to domestic employment, underlining their importance for the local labour market.
The technology sector now employs more than 30,000 people. Between 2023 and August 2024, nearly 21,000 residence permits were issued for specialised personnel in the sector. This growth has a strong multiplier effect, boosting demand across the economy, he added.
At the same time, Cypriot businesses can benefit directly from the presence of foreign companies in Cyprus.
Local entrepreneurs can explore partnerships and cooperation agreements with foreign firms operating on the island, allowing them to benefit from technology and know‑how transfer. Such collaborations can also help Cypriot companies expand abroad.
Asked about geopolitical uncertainty, Tannousis said foreign investors are not concerned about Cyprus’s stability and security. Companies continue to operate, expand and recruit staff, with no noticeable change compared to the period before the war in the Middle East.
A significant step by Eurobank
Commenting on the opening of Eurobank’s representative office in Mumbai, India’s business capital, Tannousis said the development has a positive impact on Cyprus as well.
It will help further promote Cyprus, he explained, by offering Indian entrepreneurs greater ease in accessing the European Union.
“With this move by Eurobank, Greece and Cyprus have entered the investment radar of Indian businesses. We all know that without banks nothing can move, so this is extremely important and deserves congratulations. It is a significant step, supports our strategy and is already delivering results,” he said.
The interview with Marios Tannousis was conducted as part of the podcast ‘A Look at the Economy’. The video podcast of the full interview is available in Greek at politis.com.cy.
