Honorary Consul Viraj Kulkarni: Cyprus has significant untapped potential in its relationship with India

In a world where collaboration is key, Viraj Kulkarni, the Honorary Consul of Cyprus in Mumbai, has undertaken the significant task of enhancing bilateral relations between Cyprus and India.

Here, he outlines the Consulate’s objectives, the significance of recent agreements and the exciting opportunities that lie ahead for both nations, while emphasising the importance of maintaining a clear vision for investment and development.

As the Honorary Consul of Cyprus in Mumbai, what are your primary responsibilities and objectives when it comes to strengthening ties between Cyprus and India?

My primary responsibility is to support the initiatives of the High Commission of the Republic of Cyprus in India by fostering goodwill and strengthening the relationship between Cyprus and India. The Honorary Consulate in Mumbai will help create visibility and opportunities for the two countries in the areas of culture, trade, business, tourism, maritime and technology. Mumbai, the commercial capital of India and the capital of Maharashtra state, with a GDP exceeding $585 billion, offers numerous and diverse opportunities.

The Consulate office is centrally located providing very high visibility to trade and commerce. Additionally, efforts will be made to support the initiatives of the High Commissioner of India in Cyprus. I am pleased to reveal that, last week, the Bombay and Cyprus Chambers of Commerce and Industry signed a Memorandum of Understanding to enhance trade and commerce between India and Cyprus. This is the first such agreement in 64 years and several initiatives are due to be introduced in the coming months.

What, in your view, are the most significant cultural and economic connections that India and Cyprus share and how can they be further strengthened?

The strategic relationship between India and Cyprus, which was established in the 1960s, has significantly strengthened in recent years. Notable developments include high-profile visits by the President and the Foreign Minister of India to Cyprus – the first in many years. Cyprus has emerged as one of the top ten countries for Foreign Direct Investment (FDI) inflows to India and holds a special status under Category 1 Foreign Portfolio Investments (FPI). Additionally, through the participation of Nicodemos Damianou, Deputy Minister of Research, Innovation & Digital Policy. Cyprus played a key role in the India-Mediterranean Conclave, hosted in August by the Confederation of Indian Industry with support from the Ministry of Corporate Affairs and the Ministry of External Affairs.

The India-Middle East Corridor linking Europe is also poised to benefit Cyprus, which, due to its strategic location, can provide logistical and other forms of support. Broader awareness of India’s multidisciplinary strengths is limited and more efforts are needed to harness these opportunities for mutual benefit. Recent, initiatives driven by both governments and their High Commissioners in Nicosia and Delhi have gained momentum. The Honorary Consulate of Cyprus in Mumbai will focus on supporting the successful realisation of these efforts.

With Cyprus being a gateway to Europe and India a major player in Asia, what opportunities do you see for collaboration between businesses in both countries in emerging sectors such as technology, renewable energy and healthcare?

Cyprus is strategically located as an efficient gateway to and from Europe, with significant untapped potential in its relationship with India. Creating visibility and reshaping perceptions is key: for instance, promoting Cyprus as a tax-efficient country rather than a tax haven. Promoting awareness of India’s $4.2 trillion economy, advanced infrastructure with over 35 major airports, $5.5 trillion market capitalisation, $120 billion wedding industry and robust healthcare and digital sectors can be new avenues.

The Honorary Consulate of Cyprus in Mumbai will focus on fostering alliances between Chambers of Commerce, enhancing tourism (including through wellness, direct flights and MICE events), and building partnerships between the Indian and Cypriot capital markets. Collaborative efforts are also underway by Invest India, Invest Cyprus and various Chambers of Commerce to broaden engagement.

Growth could be further boosted if Cyprus were to revisit its migration and employment laws to attract talent. For example in Poland and Germany have relaxed employment regulations for Indians, particularly in the tech sector, which has resulted in a strengthening of their economies and attracting top talent. European investment in India is growing; Cyprus was considered by PIVOT for manufacturing investments by an Indian conglomerate. Many initiatives are in progress, indicating a busy and promising future for both countries. I am receiving numerous inquiries and several initiatives are in the pipeline. I believe that both sides will be quite busy soon!

As someone deeply involved in diplomacy and international business, what motivates you in your role as Honorary Consul and what do you hope to achieve during your tenure?

The role of Honorary Consul presents a significant opportunity to foster business and trade development between our two countries. This is particularly important, as Mumbai falls under my jurisdiction and serves as India’s business capital. Given my previous local and international experience, I plan to leverage that expertise in this new role. The positive feedback I’ve received from both Cyprus and India is encouraging however much work is to be done.

As Honorary Consul, I will also support the High Commissioner of Cyprus in enhancing people-to-people contacts, cultural exchanges and overall economic growth in our bilateral relations. When I first visited Cyprus in 2020, I was pleasantly surprised in many ways. I met industrious entrepreneurs, skilled professionals, a robust SME sector yet an absence of well-developed capital markets, along with legal frameworks similar to those in India and an overall ease of doing business (though banking processes could be improved). Additionally, Cyprus boasts historic monuments, a youthful population, a tourism-friendly environment, warm people, excellent cuisine and much more.

However, Cyprus’ image in India was largely overshadowed by its financial crisis and its reputation as a “tax haven,” along with challenges related to accessibility due to a lack of direct flights. Fortunately, the visa process has improved significantly. Recently, in Mumbai we hosted over 200 High Net Worth Individuals, policymakers and others at an event focused on India-Cyprus relations. Every attendee was impressed by the information shared and by videos presented by their Excellencies, myself, and representatives of Cyprus’ tourism sector. Many were inspired to plan visits to Cyprus immediately! We even received on-the-spot confirmations for tours of Cyprus and business collaborations!

My goal is to shift perceptions on a larger scale and ideally achieve exponential growth. During my most recent trip, to Nicosia in September, I held 37 meetings over five working days, engaging with a diverse range of individuals, Institutions and Policy makers. Each meeting was positive and I believe that this will translate into tangible success. I was particularly impressed by George Michail, the CEO of IMH, whose passion for elevating Cyprus on the international stage is truly inspiring, and by Marios Tannousis, the CEO of Invest Cyprus, and his commitment to attracting new investment.

Insightful conversations with the Permanent Secretary of the Ministry of Foreign Affairs, the Deputy Minister of Tourism and others were also beneficial. With strong local market expertise and valuable connections across various sectors, I am optimistic about accelerating business growth between India and Cyprus, especially in the areas mentioned, with a focus on Maharashtra.

In addition to your role as Honorary Consul of Cyprus in Mumbai, you are also deeply involved in the entrepreneurial realm as the Founder and CEO of PIVOT. What inspired you to start the firm and what services does it provide?

PIVOT Management Consulting Ltd was established in 2015 and is headquartered in Mumbai. Recognised globally, it is Asia’s largest firm in securities services consulting, specialising in custody services. I founded PIVOT after holding senior management positions at Morgan Stanley, Citibank (India and Switzerland), JP Morgan, and BNP Paribas. Since its inception, PIVOT has expanded its footprint across capital markets, providing advisory and non advisory services in areas such as capital market infrastructure (government exchanges, depositories, clearing houses), custodianship, private equity, fund accounting, brokerage, training and the establishment of representative offices.

The inspiration for PIVOT came in 2014 when my then 21-year-old daughter advised me to “stop working like crazy and enjoy life”! She suggested that I should consider consulting and my mentor, then 75 years old, validated her perspective. The following day, I resigned and founded PIVOT, focusing on leveraging my knowledge and experience to build premier institutions and collaborate with them. In 2022, I had the honour of becoming the first India-based GC Legend inducted into the Global Custodian Hall of Fame, an exclusive group of only 356 legends from 108 countries in what is now the $281 trillion custody industry.

PIVOT has a presence in India, Luxembourg, South Africa and Cyprus. Why did you choose to establish PIVOT Consultants (Cyprus) Ltd.? What factors influenced this decision and what benefits do you anticipate from expanding to Cyprus?

In 2020, I undertook a project with KPMG in Cyprus that focused on the SME segment and brought me to Cyprus several times. Thanks to Angelos Gregoriades, I had the opportunity to tour the country, meet wonderful people and experience its diverse facets. Despite having lived in Zurich, Singapore, Hong Kong and London, I felt a unique connection to Cyprus. I subsequently established PIVOT Cyprus with two friends, aiming to enable cross-border collaborations, which we successfully achieved.

Over the years, we have actively promoted Cyprus on a global scale, including in India. In this sense, PIVOT Cyprus served as a crucial stepping stone. As the scope of our initiatives expanded, so did my engagement with key stakeholders, including Invest Cyprus, banks, stock exchanges, entrepreneurs, management firms, legal firms, SMEs, Tourism Boards and policymakers.

The role of Honorary Consul allows me to connect and collaborate with the best in the industry to foster growth, promote the common good and create mutual benefits for both countries, their businesses and their people. The Mumbai Consulate office maintains an active LinkedIn page to expand our outreach to policymakers to enhance our initiatives. In this regard, we welcome suggestions and feedback from everyone.

(Original photo by Tadobi)

This interview first appeared in the November edition of GOLD magazine. Click here to view it.