India expects to finalise a free trade agreement with the European Union by the end of this year, Prime Minister Narendra Modi said on Monday, while Cyprus, which assumes the EU presidency in 2026, said better ties would be its priority.
Modi, on an official visit to the east Mediterranean island, said there were unlimited possibilities in expanding economic ties with Cyprus in a visit aimed at pushing forward India’s global trade agenda.
"We are working on finalising a mutually beneficial India-EU trade agreement by the end of this year," Modi said in joint remarks with Cypriot President Nikos Christodoulides.
India is pursuing a trade link by sea and rail known as the India-Middle East-Europe Corridor, but the visit is being held in the shadow of an escalating crisis in the Middle East.
"We agree the India - Middle East Europe Corridor will pave the way for peace and prosperity in the region," Modi said.
Cyprus, which has close relations with India through its shared membership of the Commonwealth, is offering facilities to be a first point of entry to Europe and a transhipment hub, Christodoulides said.
"A strengthening of EU-India relations will be among the priorities of the Cypriot EU presidency," Christodoulides said. Cyprus assumes the rotating six-month presidency of the bloc in early 2026.