Indian Prime Minister Narendra Modi is set to advance talks about Cyprus' potential role in linking India to Europe through a trade corridor on Monday. 

On the second day of his visit, Modi is expected to hold formal talks with Cypriot leaders where the corridor is likely to be a key topic of discussion. 

The visit has also grabbed attention in India where it is seen as a message to Turkey — a rival neighbor to Cyprus — which openly supported Pakistan over India in their recent cross-border hostilities. 

India has been pursuing the so-called India-Middle East-Europe Corridor (IMEC) trade link via sea and railway.

"One of the objectives of our discussions is the connection of India with Europe through the region of the wider Middle East, (and) its entry into Europe through the Republic of Cyprus," Cypriot President Nikos Christodoulides told journalists earlier Sunday.

The IMEC is widely seen as a counter to China's Belt and Road Initiative.

Strengthening cooperation

Modi arrived in Cyprus on Sunday and carried out a full day of activities including meeting the Indian diaspora, an informal meeting with President Christodoulides, followed by a business roundtable. 

Indian media, citing unnamed officials, reported that leaders facilitated a memorandum of understanding between the National Payments Corporation of India (NPCI) and the Eurobank of Cyprus to introduce UPI services in Cyprus for cross-border transactions.

The visit is part of a larger diplomatic outreach to European nations. Modi is set to visit Canada for the G7 summit and end the tour with Croatia.

Edited by: Zac Crellin