H.E. Mr. Loucas Louca, Minister of Justice & Public Order, Smt. Purandeswari, Minister of State of Human Resource Development, India,    
Mr. Manthos Mavrommatis, President of the Cyprus Chamber of Commerce & Industry,    
Mr. Marios S. Andreou, President of the Cyprus India Business Association,    
Mr. Vimal Mahendru, Leader of the Indian Business Delegation,

Ladies; Gentlemen,

It is a great pleasure for me to be here in the beautiful city of Nicosia in the midst of the friendly people of Cyprus and distinguished captains of business and industry. I would like to commend the Cyprus Chamber of Commerce and Industry for organizing this event to strengthen India-Cyprus economic relations.

Cyprus and India are close and trusted friends. We support the independence, sovereignty, territorial integrity and unity of the Republic of Cyprus. We value the consistent support extended by Cyprus on issues of significance to India. I am told that in the recent years our economic relations have increased, but we need to look at how to further expand these by adding new dimensions and areas of co-operation.

We admire the success of the people of Cyprus in achieving rapid economic growth and creating a strong service sector, in particular, the tourism industry and financial services. We have been following with great interest the development vision of the Government of Cyprus and its resolve to modernize its economy to a new technological era. We wish you all success in your development strategy. India, with its core competence in the IT sector and a large pool of skilled manpower, would be happy to participate in Cyprus's plan to develop its knowledge based industries.

The last two decades have seen a steady liberalization of the Indian economy. This period has also witnessed a rapid increase in the rate of economic growth. The global economic and financial crisis has had its adverse impact all over the world. However, even in the face of this, India has been able to grow at more than 6.5 percent, showing the resilience of its economy. All indications are that India is on the path to recovery. The stock markets have rebounded and market capitalization has crossed $ 600 billion.

India's stable economy and its democratic as well as transparent system makes it an excellent destination for investment. We are undertaking a massive infrastructure expansion programme requiring an investment of over US $ 500 billion over the next five years. This opens up many opportunities for global businesses for investment in India. I invite Cypriot companies to participate in bids for projects in India, individually or in joint ventures with Indian firms.

Our strong domestic demand and an upwardly mobile middle class population creates a big market and, hence, an attraction for the global business community.

A remarkable feature of India's economy is its emergence as a global player in the knowledge based industries. IT, biotechnology, pharmaceuticals, renewable energies have seen rapid growth. As I stated earlier, India today is ideally positioned to facilitate the Cypriot Government's policy to promote the country's pursuit in further developing hi-tech and knowledge-based industries. Apart from IT, tourism, financial services, Agro-food processing, pharmaceuticals, hydro-carbons, automobiles could be some of the areas of potential cooperation. I am confident that Indian and Cypriot industrialists and business people will utilize the opportunities available in Cyprus for mutual benefit.

Our bilateral trade is US$ 68 million. Considering that both countries have impressive global merchandise trade turnovers, our trade figures are very low. I call on this meeting to also focus on looking at ways to enhance and diversify our trade relations.

Ladies and Gentlemen,

Since ancient times, Cyprus has been at the centre of busy trade routes linking Europe, the Arab world and the Far East. The Cypriot people are known for their warm and hospitable attitude towards those who touch the shores of this island nation. This has facilitated the establishment of Cyprus as a hub of trade and sea communications. After joining the EU, Cyprus stands as the South-Eastern outpost of the European Union. It offers a springboard for expansion in the broad East Mediterranean. Indian business and industry should also look at the vast European Union market and the markets of Russia and Mediterranean countries that can be served with Cyprus as base.

I wish the captains of Indian and Cypriot business and industry all success in their deliberations. I remain confident that you will forge new partnerships which will be mutually beneficial. Your discussions could look at roadblocks and obstacles, if any, that may need government policy measures. I firmly believe that the potential of India-Cyprus economic relations is far from realized. Your joint efforts will further cement our friendly relations. My good wishes to all of you.

Thank you.