India and Cyprus on Thursday expressed hope that after the removal of Cyprus as a notified jurisdictional area and the revised tax avoidance pact bilateral investments between the two countries will increase.

“These can give a completely new dynamic and strengthen the economic ties, particularly in the field of investments between the two countries,” said Nicos Anastasiades, President of Cyprus, at the India-Cyprus business session organised by industry chambers.

To this effect, a number of bilateral agreements will be signed during his visit to New Delhi, he said, while inviting Indian students for education to the country as well as domestic film crew for film production.

Anastasiades is currently on a five-day visit to India, which ends on April 29.

Minister of State of Finance Arjun Ram Meghwal expressed hope that Cyprus will not only increase foreign portfolio investments to India but also invest in manufacturing in the county.

Addressing the meet, Harris Georgiades, Minister of Finance, Cyprus, said the revised DTAA will help expand bilateral ties. On its part, he said India can invest in sectors such as tourism and hospitality, wind energy and film production in Cyprus and can also source low-cost lighting and LED bulbs. Bilateral trade between India and Cyprus amounted to about $110 million in 2015.

FDI in sectors Cyprus is the eighth largest investor to India with cumulative FDI of over $8.5 billion in sectors such as financial leasing, stock exchange, auto manufacture, manufacturing industries, real estate, cargo handling, construction, shipping and logistics. However, it was considered as a tax haven for companies to route their investments and India had also blacklisted it as a non-cooperative country.

India and Cyprus had in November last year signed a revised treaty for the avoidance of Double Taxation and the Prevention of Fiscal evasion (DTAA) with respect to taxes on income that will allow source-based taxation of capital gains on shares for investments after April 1, 2017.

Since then, India has also removed the tag of notified jurisdictional area or blacklist of Cyprus.