Chrysilios Pelekanos: "One of India's largest travel agencies has made Cyprus its European base"

Strategic location, strong infrastructure and a favorable tax regime are the three main factors that make Cyprus an attractive destination for Indian businesses wishing to create a European base, utilising the island as their entry point into the EU.

As stated in an interview with InBusinessNews, according to the President of the Cyprus-India Business Association, Chrysilios Pelekanos, the interest of Indian companies to expand their activities in the EU and the Western world is particularly strong in sectors such as financial services, shipping, manufacturing, technology and artificial intelligence. At the same time as - as he points out -, the growing sectors in Cyprus, such as technology and innovation, offer new opportunities for exploration to Indian companies.

"Cyprus is well-positioned to become a leading international business center, thanks to its strategic location, robust regulatory framework and modern infrastructure," the President of the Cyprus-India Business Association emphasies, going on to indicate that improving air connectivity is another key factor on which Cyprus must focus as a country.

"Increasing the frequency of flights to major cities not only enhances business travel but also boosts tourism, a sector that significantly contributes to the Cypriot economy," he underlines.

Noting that the business and economic relations between Cyprus and India are currently on a dynamic path and are quite promising, Pelekanos points out that the recent official launch of the India-Greece-Cyprus Business Council (IGC) constitutes an important milestone for the strengthening of economic relations between these three countries.

This is a milestone and a collaboration that, as Chrysilios Pelekanos explains, will act as a catalyst for new business opportunities, particularly in infrastructure, technology, renewable energy sources and shipping.

Pelekanos confirms information sourced by InBusinessNews that one of the largest travel agency companies in India, which is currently expanding its activities in the European Union, recently established its base in Cyprus.

According to Chrysilios Pelekanos, this strategic move is part of the broader expansion plans of this group and is currently in the process of obtaining the necessary approvals.

"This initiative underscores the growing interest from Indian companies in leveraging Cyprus as a strategic hub for their European operations," he points out.

We would like you to initially provide us with the current picture regarding the business/commercial/economic relations between Cyprus and India. To what extent are they as we speak, and what are the key areas of cooperation?

The current state of business and economic relations between Cyprus and India is quite promising and dynamic. Cyprus is among the top 10 investors in India, with cumulative investments exceeding EUR14 billion in the last two decades. These investments span a variety of sectors, including services, IT, real estate, and pharmaceuticals. The key areas of cooperation include finance, shipping, tourism, the knowledge economy, mobility flows, third country projects, and broader collaboration in the Mediterranean region.

In September 2024, Invest Cyprus hosted an event in New Delhi with Indian business leaders to promote bilateral relations and provide aftercare services to support post-investment activities. The event was held in collaboration with the Deputy Minister of Research, Innovation and Digital Policy, Mr Nikodemos Damianou, and the High Commissioners of India to Cyprus and Cyprus to India, respectively. The discussions emphasized the significant cooperation between Cyprus and India, particularly within the technology and services sectors. The delegation from Cyprus also participated in the India Mediterranean Business Conclave that was organized by the Confederation of Indian Industries in New Delhi the following day and participated in a round table discussion focusing on Cyprus as the preferred European jurisdiction for Indian businesses and investors.

The signing of the Double Taxation Avoidance Agreement in 1994 and its revision in 2016 have provided a stable and favorable environment for investment. Additionally, the recent visit of the Indian Foreign Affairs Minister, Dr. S. Jaishankar, to Cyprus in September 2022, during which several important agreements were signed, further solidified these ties. These agreements cover defense and security cooperation, a declaration of intent for a migration and mobility agreement, and the International Solar Alliance.

We understand that as the Cyprus-India Business Association, you work systematically and purposefully towards further strengthening the business ties between the two countries. Has the state, over time, come to the aid of your efforts and in what ways?

Absolutely, the Cyprus-India Business Association has been actively working to enhance business ties between the two countries, and the state has been a significant supporter of our efforts. The Cypriot government has actively promoted Cyprus as an attractive destination for Indian investors through various initiatives and agreements. For instance, the national investment promotion agency of Cyprus, Invest Cyprus, has been actively promoting investment opportunities in Cyprus to Indian businesses.

The government has facilitated the signing of important agreements and MoUs, such as the one between Invest India and Invest Cyprus in December 2021, aimed at increasing mutual investment activities and supporting business cooperation. Additionally, high-level visits by Indian and Cypriot officials have played a crucial role in cementing these ties and exploring new areas of collaboration. The government's support has been instrumental in creating a conducive environment for businesses from both countries to thrive.

A few days ago, we had the official launch of the India-Greece-Cyprus Business Council, an initiative by the Eurobank Group, which is a significant step towards strengthening the economic ties among the three countries. What is your interpretation of this initiative?

The official launch of the India-Greece-Cyprus (IGC) Business & Investment Council marks a significant milestone in enhancing economic relations among these three countries. This initiative follows the Memorandum of Understanding (MoU) signed in September 2024 between the Eurobank Group and the Indian Chamber of Commerce (ICC), which laid the foundation for structured financial cooperation and investment facilitation.

This initiative aligns with India’s ambitious vision for the India-Middle East-Europe Economic Corridor (IMEC) discussed and approved at the G20 summit, which took place in New Delhi back in September 2023, aiming to create an integrated network of railways and sea routes to enhance trade and reduce transit times.

The IGC Council aims to establish a robust business platform to foster strategic cooperation in sectors such as infrastructure, shipping, technology, financial services, and small and medium-sized enterprises between the three countries. With India’s growing economic influence and Greece and Cyprus serving as key gateways to Europe, the Council seeks to enhance cross-border trade, investment, and political ties.

This partnership reflects the shared vision of India, Greece, and Cyprus for enhanced economic growth and will act as a catalyst for new business opportunities, especially in infrastructure, technology, renewable energy, and shipping.

The Cyprus-India Business Association is among the founding members of the Board of the IGC Business & Investment Council, together with other prominent organizations such as Invest Cyprus, the Hellenic Federation of Enterprises (SEV), Enterprise Greece and of course the Eurobank Group and the Indian Chamber of Commerce.

It is well known that Eurobank S.A. aims to make Cyprus a gateway for companies from India that want to operate in the EU. In this context, the bank is proceeding with the opening of a representative office in Mumbai. How important do you consider these moves, given the signing of a Memorandum of Understanding (MoU) between the bank and the Indian Chamber of Commerce (ICC) that preceded last September?

The signing of the MoU between Eurobank S.A. and the ICC in September 2024 and the plan to open a representative office in Mumbai are strategic moves that underscore the vision to make Cyprus a gateway for Indian companies looking to enter the EU market.

These initiatives are crucial as they lay the groundwork for enhanced economic and investment cooperation between India, Greece, and Cyprus. The MoU includes potential synergies with the IMEC, further solidifying the strategic importance of Cyprus and Greece in facilitating India’s economic expansion.

It is instrumental to have a regional banking group such as Eurobank establishing physical presence in India and providing the necessary financial expertise and becoming the partner of choice for companies looking to establish a presence in the EU, bridging the gap between investors and opportunities.

Do you find through your contacts that there is tangible interest from companies in India to expand their operations in Cyprus? And if so, in which business sectors is such interest most strongly observed?

Through our extensive network and interactions, we have observed a tangible interest from Indian companies in expanding their operations in the EU and the Western world. Cyprus appears to be in a pivotal position to attract such companies to use Cyprus as their entry point. This interest is particularly pronounced in sectors such as financial services, shipping, manufacturing, technology, and artificial intelligence.

The strategic location of Cyprus, its robust infrastructure, and favorable tax regime make it an attractive destination for Indian businesses looking to establish a European base. Additionally, the growing sectors in Cyprus, such as technology and innovation, offer new opportunities for Indian companies to explore.

The IGC Business Council will focus on promoting sustainable economic growth in line with global priorities such as digital transformation, climate-smart investments, and resilient trade ecosystems. This initiative will support SMEs and emerging businesses, ensuring that enterprises of all sizes benefit from the enhanced economic corridor between the three countries.

Our information indicates that a decision to establish a base in Cyprus has been taken by the largest travel agency in India. What more can we say about it?

One of the largest travel agency companies in India, which is currently expanding its operations into the European Union, has recently set up a base in Cyprus. This strategic move is part of the group’s broader expansion plans and is now in the process of obtaining the necessary approvals. This initiative underscores the growing interest from Indian companies in leveraging Cyprus as a strategic hub for their European operations.

The company’s decision to establish a presence in Cyprus highlights the potential for tourism and hospitality investments, sectors where the travel agency has extensive expertise. This aligns with the goals of the Cyprus international policy, which aims to foster strategic partnerships and enhance cross-border trade and investment opportunities. The establishment of this base is expected to contribute to the growth of the tourism sector and further strengthen economic ties between Cyprus and India.

Finally, approaching the issue of Cyprus's effort to become an international business center, how do you see things evolving? Do you see us moving in the right direction, and what more could be done to make our country an even more attractive investment destination?

Cyprus is well-positioned to become a leading international business center, thanks to its strategic location, robust regulatory framework and modern infrastructure. The country’s efforts to modernize its IT and regulatory systems, enhance immigration procedures are crucial steps in attracting foreign direct investment and fostering economic growth. These initiatives should also be complemented by efforts to streamline regulatory approvals and reduce administrative burdens, making it easier for businesses to establish and operate in Cyprus.

Improving air connectivity is another key area of focus. Increasing the frequency of flights to major cities not only enhances business travel but also boosts tourism, a sector that significantly contributes to the Cypriot economy. The country’s strategic location at the crossroads of Europe, Asia, and Africa makes it an ideal hub for international trade and investment. By leveraging its regulatory regulations, favorable tax environment, and multilingual workforce, Cyprus can further solidify its position as a regional business and financial hub.

In addition to these efforts, Cyprus is also investing in smart city initiatives aiming to create a more sustainable and innovative future. The country should also continue its efforts in reducing energy costs. In this respect alternative new technologies in production and storage of green energy should also be considered.

These multifaceted approaches, combined with the country’s commitment in embracing and supporting different cultures are paving the way for Cyprus to become a premier destination for international businesses.

(Source: InBusinessNews)