Modi’s Europe Trip Puts India’s Fintech and Tech Diplomacy on Fast Track

Cyprus and Croatia roll out red carpet for Indian digital power push

India’s Prime Minister Narendra Modi just wrapped up a whirlwind diplomatic swing through Cyprus and Croatia, and while handshakes and photo-ops were in no short supply, this trip wasn’t just about ceremony. The headline? India is now deeply embedding itself into Europe’s digital and tech landscape — and it’s doing so with purpose.

In Cyprus, Modi inked a deal that may well redefine how money moves between India and the Mediterranean. In Croatia, talks tilted toward semiconductors, clean energy, and collaborative R&D. It’s all part of a broader shift: India’s bet that fintech and deep tech are now key to foreign policy.

Cyprus Sees India as a Digital Payments Partner, Not Just a Trade Ally

One of the biggest surprises from the Cyprus leg of the visit was the memorandum between Eurobank Cyprus and NPCI International, the overseas arm of India’s homegrown payments system.

That means tourists from India — and eventually Cyprus too — will be able to scan QR codes and pay in shops with UPI. Smooth, fast, and cheap. No fussing around with exchange rates or clunky banking intermediaries.

The Prime Minister’s Office called it “a major step in linking India’s fintech innovation to Europe’s digital backbone.”

What’s particularly interesting?

• UPI processed 596 million transactions per day as of April 2025.

• The Cyprus-Eurobank link gives India an EU-based foothold in cross-border finance.

• NPCI already has partnerships brewing in France, Singapore, and the UAE — Cyprus is now a gateway to southern Europe.

And there’s a symbolism here, too. India’s digital diplomacy isn’t just visiting Western capitals anymore. It’s building bridges in the smaller, often overlooked economies, where there’s less bureaucracy and more openness to experimentation.

Croatia Courts India for Semiconductors, Green Tech, and Innovation

In Zagreb, the tone was more forward-looking. Less about what already exists, more about what could.

Croatian PM Andrej Plenković emphasized joint research, saying his government wants to “build future-facing economic partnerships with India, especially in renewable tech and chip manufacturing.” That may sound vague, but insiders say both sides are already sketching out pilot programs in AI and EV supply chains.

India, for its part, is actively scouting for smaller but technologically sophisticated partners across Europe as it seeks to wean itself off dependence on China and tighten ties with like-minded democracies.

There was also quiet talk about startup exchanges and academic tie-ups between Indian IITs and Croatian universities. Not splashy, but vital.

Just one sentence here.

UPI’s Global March: Cyprus Could Be a European Turning Point

Let’s be honest. India’s UPI expansion hasn’t been easy. Europe, with its web of payment regulations and legacy banking systems, hasn’t exactly rolled out the welcome mat.

But this Cyprus deal could be the moment that changes.

The question is whether UPI can sidestep entrenched European digital payment giants. Or, better yet, collaborate with them. Eurobank Cyprus becomes the first to bite — others may follow if tourists actually use the service.

Here’s a quick snapshot of where UPI stands globally:

Only one sentence again here.

Cyprus Looks to India for More Than Just Tourists

Modi didn’t just sell payments tech. He pitched India’s entire innovation ecosystem to Cypriot entrepreneurs.

“Why not partner in quantum tech, semiconductors, AI?” he asked during his meeting with business leaders in Nicosia.

And it wasn’t empty rhetoric. Sources say India’s Ministry of Electronics and IT (MeitY) has offered to host Cypriot startups at its innovation hubs in Bangalore and Hyderabad for co-development programs.

One officer involved in the discussions summed it up bluntly: “We’re not just talking trade anymore. We’re talking ideas, algorithms, and IP.”

And for a small country like Cyprus, plugging into India’s giant innovation network could be transformative — especially as EU funds flow toward green and digital projects post-COVID.

That shift in tone was reflected in their joint statement, which for the first time included language around:

• Co-innovation grants for tech startups

• Shared research on digital identity infrastructure

• Climate-focused AI pilot programs

It’s not every day that Cyprus starts aligning its digital policy with India’s stack philosophy. But here we are.

Behind the Optics, a Bigger Shift in India’s Foreign Policy

There’s a reason Modi is investing time in places like Cyprus and Croatia.

They’re small enough to move fast, hungry enough to say yes, and close enough to the EU core to matter. And crucially, they’re not weighed down by the kind of bureaucratic and political baggage that often slows things down in Berlin or Paris.

India’s newer approach isn’t about headline deals. It’s about building infrastructure for the future — whether it’s fintech rails, chip labs, or student mobility programs.

One Indian diplomat familiar with the trip put it like this: “It’s not just a visit, it’s a signal. We’re here to play in Europe — and we’ll do it our way.”