Pharmaceuticals

India-Turkey Trade Declines Amid Geopolitical Strains

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India-Turkey Trade Declines Amid Geopolitical Strains New Delhi, May 29, 2025 – Bilateral trade between India and Turkey, valued at $10.43 billion in FY 2023-24, has contracted significantly in FY 2024-25, driven by geopolitical tensions and a growing boycott movement in India. The fallout from Turkey’s alleged support for Pakistan during Operation Sindoor in May 2025 has prompted Indian traders and consumers to target Turkish goods and services, reshaping economic ties. Trade Snapshot: A Contracting Relationship According to India’s Ministry of Commerce, bilateral trade in FY 2023-24 reached $10.43 billion, with India exporting $6.65 billion and importing $3.78 billion, yielding a trade surplus of $2.87 billion. However, from April to February FY 2024-25, exports to Turkey dropped to $5.2 billion (1.5% of India’s $437 billion total exports), and imports fell to $2.84 billion (0.5% of India’s $720 billion total imports), resulting in a $2.37 billion surplus. This marks a 37% decline from FY 2022-23’s $13.8 billion trade volume. India’s key exports to Turkey in FY 2023-24 included engineering goods ($2.75 billion), petroleum products ($954 million), electronic goods ($532 million), organic/inorganic chemicals ($528 million), man-made yarn ($378 million), and pharmaceuticals ($291 million). Turkey’s exports to India were led by mineral fuels/oils ($1.8 billion), nuclear reactors/parts ($311 million), salt/plastering materials ($235 million), inorganic chemicals ($188 million), and pearls ($132 million). From April to October 2024, India’s imports from Turkey totaled $1.9 billion, with mineral fuels ($600.96 million) and pearls ($237.56 million) leading. Boycott Movement Gains Momentum The Confederation of All India Traders (CAIT) has spearheaded a boycott targeting Turkish apples ($92.8 million in 2023) and marble, which constitutes 70% of India’s marble imports (valued at ₹2,500–3,000 crore annually). Indian traders are shifting to alternatives, sourcing apples from Iran and New Zealand and marble from Italy. The boycott extends to tourism, with Turkey hosting 330,000 Indian visitors in 2023 (up 20.7% from 2022). Travel bookings have dropped 60%, with cancellations rising 250%, threatening Turkey’s $54.3 billion tourism revenue. In the aviation sector, Turkish firm Çelebi Aviation lost $200 million in shareholder value after India revoked its security clearance, reflecting the broader economic fallout. Investment Ties Turkish foreign direct investment (FDI) in India from April 2000 to September 2024 totaled $240.18 million, while Indian investments in Turkey ranged between $126 million and $200 million, indicating modest but balanced capital flows. Historical Context and Challenges India and Turkey established trade ties through a 1973 agreement, followed by the 1983 Joint Commission on Economic and Technical Cooperation. Despite this foundation, India’s limited dependence on Turkey (1.5% of exports, 0.5% of imports) allows flexibility to pursue boycotts. However, sectors like engineering goods and chemicals may face supply chain adjustments if trade halts. Data discrepancies persist, with Turkey reporting $1.52 billion in exports to India in 2024, while India recorded $2.62–2.84 billion in imports. These variations, likely due to differing reporting periods, underscore the need to verify data with sources like India’s Ministry of Commerce or UN COMTRADE. Outlook India’s trade surplus and access to global alternatives mitigate the boycott’s economic impact, but the decline in trade and tourism signals strained relations. As Indian businesses pivot to new markets, the future of India-Turkey economic ties remains uncertain. For detailed trade insights, visit https://x.ai/grok for subscription-based access or https://help.x.com/en/using-x/x-premium for updates.

Bilateral trade between India and Turkey, valued at $10.43 billion in FY 2023-24, has contracted significantly in FY 2024-25, driven by geopolitical tensions and a growing boycott movement in India. The fallout from Turkey’s alleged support for Pakistan during Operation Sindoor in May 2025 has prompted Indian traders and consumers to target Turkish goods and … Read more

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