LOGIN
More

Research

Media & Events

Other Links

Campaigns

India Turkey Trade

India Turkey Trade Agreement

Last updated: Oct, 2023

Introduction

Turkey was among the first European countries to develop diplomatic relations with independent India in the year 1947. The close bilateral relationship is based on shared commonalities and commitment to the rule of law, federalism, and pluralism. Turkey supports India’s aspiration for permanent membership of the UNSC.

India-Turkey Trade

  • The trade between the nations crossed US$ 10.70 billion in 2021-22.
  • The bilateral trade between the nations stood at US$ 13.81 billion during 2022-23.
  • Turkey occupies the 44th position in FDI equity inflows into India with a cumulative FDI number of US$ 220.07 million from April 2000-March 2023.

Major exported items from India to Turkey with amount & quantity

  • India exported 4,265 commodities to Turkey in 2022-23.
  • India’s exports to Turkey stood at US$ 9.61 billion in 2022-23.
  • Major exported items from India to Turkey include petroleum products (US$ 3.22 billion), iron and steel (US$ 724 million), manmade, yarn, fabric and made-ups (US$ 485 million), auto components/ parts (US$ 402 million), gold and other precious metal jewellery (US$ 389 million), aluminium, products of aluminium (US$ 315 million), etc. during 2022-23.
  • India’s exports to Turkey stood at US$ 1.24 billion from April-May 2023-24.
  • Major exported items from India to Turkey include petroleum products (US$ 160 million), iron and steel (US$ 119 million), manmade yarn, fabrics and made ups (US$ 84 million), auto components/ parts (US$ 75 million), telecom instruments (US$ 68 million), industrial machinery for dairy etc. (US$ 53 million), cotton yarn (US$ 47 million) etc. from April-May 2023-24.

Major imported items by India from Turkey with amount & quantity

  • India imported 2,799 commodities from Turkey in 2022-23.
  • India’s imports from Turkey stood at US$ 4.20 billion in 2022-23.
  • Major items imported by India from Turkey include petroleum; crude (US$ 1.77 billion), gold (US$ 227 million), vegetable oils (US$ 220 million), granite, natural stones (US$ 186 million), electric machinery and equipment (US$ 179 million), iron and steel (US$ 170 million) inorganic chemicals (US$ 141 million), etc., during 2022-23.
  • India’s imports from Turkey stood at US$ 692 million from April-May 2023-24.
  • Major items imported by India from Turkey include petroleum: crude (US$ 330 million), vegetable oils (US$ 77 million), inorganic chemicals (US$ 34 million), fresh fruits (US$ 29 million), other crude minerals (US$ 24 million), industrial machinery for dairy (US$ 23 million), iron and steel (US$ 18 million) etc. from April-May 2023-24.

Economic Relations and Investments

  • Indian companies have invested about US$ 126 million in Türkiye (as per Central Bank of Türkiye data) and Turkish investment in India is approximately US$ 210.47 million (as per Department for Promotion of Industry and Internal Trade, India).
  • Turkey occupies the 44th position in FDI equity inflows into India with a cumulative FDI number of US$ 220.07 million from April 2000-March 2023
  • Turkish investments in India come up to US$ 223 million as per a report by the Indian Embassy. Turkish companies operating in India include Koç Holding (consumer durables), Arcelik A.S (home appliances), Doğuş Holding Doğuş Construction (construction), Limak Holding (construction), Fernas (construction), Sarar (Turkish menswear), Soktas (fabric company now acquired by Grasim Industries Ltd), Çelebi Holding (aviation services), Orhan Holding (automotive supplier), Hidromas (hydraulic products – owned by Netherland-based HMS Global), etc. Many Turkish firms have structured their Indian business holdings as joint ventures with Indian firms. Turkish stakeholders are involved in engineering, procurement, and constructing (EPC) contracts as engineers, technical consultants, and constructors.
  • Based on a June 2022 press release by the Indian Ministry of External Affairs, Indian companies are present in Türkiye’s automobile, pharmaceutical, and IT sectors while Turkish businesses have a presence in India’s infrastructure and engineering sectors.
  • For Indian companies, Türkiye serves as a base to do business with markets in Europe, Central Asia, and the Black Sea Region, besides expanding access to the Middle East.On the other hand, Turkish firms can locate their Asia production base in India and tap into its manufacturing ambitions, besides participating in the country’s infrastructure and logistics projects. Key industries in India that are ripe for Turkish investments include construction, medical tourism, and auto components.
  • The Turkish Indian Chamber of Commerce & Industry (TICCI), an affiliate of the Turkish business confederation TUSKON, has offices in Bangalore, Chennai, New Delhi, Hyderabad, Kolkata, and Mumbai. TICCI has been tasked with facilitating contacts for exports, joint ventures, and alliances. TICCI has also signed an MoU with ASSOCHAM (Associated Chambers of Commerce and Industry of India).

Recent Trends & development

  • As per the Embassy of India in Ankara, prominent Indian companies registered in Türkiye include Tractors and Farm Equipment Limited (TAFE), Mahindra, Sonalika, Tata Motors, Jindal, Indo-Rama, Birla Cellulose, Polyplex, GMR Infrastructure, Merrill Lynch, Punj Lloyd, Reliance Industries, Thermax, Wipro, Dabur, Jain Irrigation, etc. and have invested around US$ 125 million in the country.
  • India and Turkey had a Cultural Agreement in place since 1973. An MoU was signed between ICCR and BOZAR (Centre for Fine Arts – Brussels) for cooperation in the field of culture on February 4, 2021.
  • Foreign Office Consultations (FOCs) at Secretary (Deputy Foreign Minister) level were institutionalized through a Protocol signed in April 2000. The last round of consultations was held on June 10, 2022 in Ankara.
  • Several events have already been organized in connection with Azadi ka Amrit Mahotsav (India@75), marking 75 years of India’s independence. The Indian Council of Cultural Relations (ICCR) sponsored a Gujarati folk dance group ‘Saptak’ and visited Bursa (Türkiye) in the 34th International Golden Karagoz Folk Competition in July 2022. Teaching and learning Turkish and Indian languages are also being encouraged and facilitated in each other’s countries.
  • On September 16, 2022, Indian Prime Minister, Mr. Narendra Modi unexpectedly met Turkish President, Mr. Recep Tayyip Erdogan on the sidelines of the Shanghai Cooperation Organization (SCO) Summit in Samarkand, Uzbekistan. Both the leaders discussed the ways to strengthen bilateral relations, in particular giving a thrust to economic cooperation.

Conclusion

India-Turkey economic and commercial cooperation has deepened over the years and constitutes an essential dimension of the bilateral relationship. Several bilateral agreements and institutional mechanisms, at the governmental level and B2B provide the framework for strengthening ties in other sectors.

Contacts

Partners
Swatch Bharat
Digital India Logo
GEM - Government e Marketplace
India Govt - National Portal of India
Loading...