India Turkey Trade
India Turkey Trade Agreement
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 FY 2021-22.
- The bilateral trade between the nations stood at US$ 9,119 million from April-November 2022.
- Turkey occupies the 46th position in FDI equity inflows into India with a cumulative FDI amount of US$ 216.11 million from April 2000 – September 2022
Major exported items from India to Turkey with amount & quantity
- India exported 4,095 commodities to Turkey in FY 2021-22.
- India’s export to Turkey stood at US$ 8.7 billion in FY 2021-22.
- Major exported items from India to Turkey include minerals fuels, mineral oils & products, bituminous substances, and mineral waxes (US$ 2,176.87 million); followed by iron and steel (US$ 1,198.34 million) in FY 2021-22.
- India’s export to Turkey stood at US$ 6.1 billion from April-November 2022.
- Major exported items from India to Turkey include petroleum products (US$ 2,216 million) followed by iron and steel (US$ 486 million) etc. from April-November 2022.
Major imported items by India from Turkey with amount & quantity
- India imported 2,657 commodities from Turkey in FY 2021-22.
- India’s imports from Turkey stood at US$ 1.99 billion in FY 2021-22.
- Major items imported by India from Turkey include pearls, precious or semi-precious stones/metals, and articles thereof; imitation jewellery and coin (US$ 484.33 million); followed by nuclear reactors, boilers, machinery, and mechanical appliances; parts thereof (US$ 304.01 million) in FY 2021-22.
- India’s imports from Turkey stood at US$ 2.9 billion from April-November 2022.
- Major items imported by India from Turkey include petroleum: crude (US$ 1,218 million) followed by electric machinery and equipment (US$ 159 million) etc. from April-November 2022.
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 46th position in FDI equity inflows into India with a cumulative FDI amount of US$ 216.11 million from April 2000 – September 2022. 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
- India and Turkey had a Cultural Agreement in place since 1973. An MoU was signed between ICCR and BOZAR (Center for Fine Arts – Brussels) for cooperation in the field of culture on 4 Feb 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 10 June 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
- Embassy of India, Turkey
Address: 77, Cinnah Caddesi, Cankaya 06680,
Telephone: 00-90-312-4382195-9 (4 lines)
Officials
Dr. Virander Paul – Ambassador
Telephone: +90-312-4403427/28
Email : amb.ankara@mea.gov.in
Mr Shri Samant Rohan Rajendra - First Secretary (Cons & Info)
Email : +90312440 8259 - Embassy of Turkey, India
Address: 50-N, Nyaya Marg, Chanakyapuri, New Delhi, Delhi 110021
Email: embassy.newdelhi@mfa.gov.tr
Telephone: 011 2688 905
Officials
Fırat Sunel- Ambassado
Partners
