In News:

Prime Minister Narendra Modi began his five-day, three-nation tour with a historic visit to Cyprus—the first by an Indian PM in over 20 years. His visit focused on strengthening economic ties and pushing forward the India–European Union Free Trade Agreement (FTA).

Key Highlights of the Visit

• India-EU FTA Commitment: PM Modi announced that India and the EU are committed to concluding a Free Trade Agreement by the end of 2025. Negotiations have gained momentum.
• India–Cyprus Economic Engagement:
  • Addressed the India-Cyprus CEO Forum in Limassol, pitching India as a hub for digital innovation and infrastructure.
  • Highlighted India’s digital growth: Over 50% of global digital transactions via UPI originate from India. Talks are ongoing to onboard Cyprus into UPI.
  • Announced a new shipbuilding policy and noted an annual investment of USD 100 billion in infrastructure.
  • Supported the launch of the India–Cyprus–Greece Business and Investment Council, promoting trilateral cooperation.
  • Welcomed the NSE–Cyprus Stock Exchange partnership in GIFT City, Gujarat.
• Startup and Innovation Focus: Emphasised India's vibrant startup ecosystem with over 1 lakh startups offering innovative, scalable solutions.

About Cyprus – Key Facts for Prelims

• Location: Eurasian island in the northeastern Mediterranean Sea, south of Turkey and southeast of Greece.
• Capital: Nicosia
• Area: 9,251 sq. km (3rd largest island in the Mediterranean after Sicily and Sardinia)
• Climate: Mediterranean – dry summers and wet winters
• Highest Point: Mount Olympus (1,952 m)

Geopolitical Context

• Divided Island:
  • Since 1974, Cyprus has been partitioned between a Turkish-controlled north and a Greek-Cypriot-controlled south.
  • Only Turkey recognises Northern Cyprus as an independent state.
  • A UN-patrolled Green Line separates the two regions.
• Political System: Presidential republic – the President is both head of state and government.
• Official Languages: Greek and Turkish
• EU Membership: Joined the European Union on May 1, 2004
• Major Cities: Limassol, Larnaca, Famagusta, Paphos