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India, EU Aim to Finalize Free Trade Deal by Year-End
During his official visit to Cyprus, Prime Minister Narendra Modi reaffirmed India’s commitment to conclude a Free Trade Agreement (FTA) with the European Union by the end of 2025. Speaking at the India–Cyprus CEO Forum in Limassol, Modi called the FTA a major priority for both sides, aimed at deepening trade, technology, and strategic cooperation with the EU.
India EU FTA
Modi emphasized that both India and the EU are determined to finalize the long-pending trade agreement within the next six months. Technical negotiations have already resulted in the closure of several chapters, including intellectual property rights and customs procedures, with only a handful of issues left unresolved. If concluded, this deal would rank among the world’s largest bilateral trade agreements.
Modi highlights India’s digital and economic strength
Addressing business leaders, Modi showcased India’s rapid transformation into a global digital powerhouse. He cited that India now handles 50% of global real-time digital transactions and is leading in infrastructure, semiconductors, artificial intelligence, aviation, shipbuilding, and renewable energy. He underlined that India is poised to become the world’s third-largest economy, powered by over 100,000 startups and ongoing structural reforms.
Strategic and financial cooperation
A number of important agreements were inked during the visit. These include a Memorandum of Understanding between the National Stock Exchange of India and the Cyprus Stock Exchange, a new partnership between NPCI and Eurobank to bring UPI payments to Cyprus, and the formal launch of the India-Cyprus-Greece Business & Investment Council. These initiatives aim to strengthen cooperation in sectors like logistics, renewable energy, aviation, and digital services.
Cyprus: A European bridge for India
Both Modi and Cypriot President Nikos Christodoulides hailed Cyprus as a strategic bridge for India to access European markets. With Cyprus set to hold the rotating presidency of the European Union in 2026, the timing of this partnership adds further weight to India’s trade ambitions. Bilateral trade between India and Cyprus currently stands at around USD 150 million, with vast potential for expansion.
