Cyprus becomes a “corridor” for Indian business in the EU

Cyprus is strengthening its role as a “gateway” to the European Union for Indian businesses, according to Sanjay Tugnait, President and CEO of Fairfax Digital Services. In a recent interview with CBN, he emphasized that the island “in many ways has become a corridor for Indian companies into the EU,” thanks to a combination of regulatory predictability, an English-speaking business environment, and access to the pan-European services market.

Tugnait’s statements align with a 2025 roadmap of bilateral and trilateral initiatives. In spring, the India–Greece–Cyprus (IGC) business track was launched with initial business forums in Athens and Limassol; Tugnait himself was a key speaker, and representatives from the Cypriot government and financial sector participated. The goal is to accelerate mutual investments, technology cooperation, and integration into regional transport-logistics chains (including the proposed India–Middle East–Europe corridor).

This initiative received a political boost: on 15–16 June, a roundtable was held in Limassol with Indian Prime Minister Narendra Modi and Cypriot President Nikos Christodoulides. Banks, fintech, ICT, logistics, shipping, tourism, and manufacturing companies participated—sectors for which Cyprus traditionally provides an EU-entry platform through common law, double taxation agreements, and the European services passport regime.

For Cyprus, the “Indian vector” means diversification of investment sources and support for digital transformation. At the May launch of IGC, it was emphasized that the track focuses on innovation and technology: from joint R&D initiatives to outsourcing of digital services, where Cyprus offers a skilled workforce and a time zone convenient for collaboration with India and the EU.

Why now?

Political momentum. After Modi’s June visit, Cyprus gained a rare opportunity to position itself as a “first step” for Indian groups in the EU, with direct business and government contacts.

Institutional framework. IGC creates a permanent business channel between New Delhi, Athens, and Nicosia, with Eurobank and business associations acting as operators of the B2B agenda.

Demand profile. ICT, finance, shipping, logistics, and tourism—sectors where Cyprus is traditionally strong and where Indian companies need a “bridge” to Europe without high-entry barriers of major markets.

What it means for Indian companies:

— EU route via Cyprus. Registering holdings and service centers on the island allows European expansion with lower transactional costs in an English-language common law environment.

— Focus on digital services. Fairfax Digital and other tech players see Cyprus as a hub for EU contracts, making it easier to scale European sales while retaining development and some operations in India.

— Triangulation with Greece. The trilateral format allows allocation of functions: finance and ICT through Cyprus, manufacturing/logistics through Greece, scaling to the entire EU market.

What it gives Cyprus:

— New direct investments and jobs in the digital economy and professional services.

— Further internationalization of the financial and business sector via Indian corporate projects in Europe.

— Strengthened role as a “bridge” on the India–Mediterranean–EU line, a thesis actively promoted in 2025 by banks and business associations.

Context and accuracy notes:

The formula “Cyprus – corridor for Indian companies into the EU” is a paraphrase from Tugnait’s CBN interview on 29 October 2025; full transcript is not publicly available, but the publication’s title and related media context (IGC forums, Tugnait as speaker, Modi visit, business roundtables) are confirmed by official releases.

Conclusion: In light of political signals and new business institutions in 2025, Cyprus is indeed consolidating its role as a “first entry point” for Indian companies in the EU. The next test is the depth of real deals in 2025–2026: from digital services and fintech to logistics and shipping ecosystems, where the island has historical strengths.