India Turkey Trade
The bilateral trade between India and Turkey stood at US$ 10.4 billion during 2023-24.
Last updated: Mar, 2024
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$ 226.87 million from April 2000-September 2023.
Major exported items from India to Turkey with amount & quantity
- India exported 4,261 commodities to Turkey in FY23.
- India’s exports to Turkey stood at US$ 4.82 billion from April-November 2023.
- Major exported items from India to Turkey include Engineering Goods (US$ 1.8 billion), petroleum products (US$ 946 million), Electronic Goods (US$ 356 million), Organic and Inorganic Chemicals (US$ 336 million), Man- Made Yarn (US$ 269 million), Others (US$ 220 million), Drugs and Pharmaceuticals (US$ 187 million) etc. from April-November 2023.
Major imported items by India from Turkey with amount & quantity
- India imported 2,797 commodities from Turkey in FY23.
- India’s imports from Turkey stood at US$ 2.3 billion from April-November 2023.
- Major items imported by India from Turkey include petroleum: crude (US$ 909 million), Nuclear Reactors and parts (US$ 220 million), Salt and Plastering materials (US$ 172 million), Natural and precious pearls (US$ 130 million), Animal products (US$ 106 million), etc. from April-November 2023.
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 Bengaluru, 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
- Embassy of India, Turkey
Address: 77, Cinnah Caddesi, Cankaya 06680,
Telephone: 00-90-312-4382195-98 (4 lines)
Officials
Ambassador - Dr. Virander Paul
Telephone: +90-312-4403427/28
Email: amb.ankara@mea.gov.in
- Embassy of Turkey, India
Address: 50-N, Nyaya Marg, Chanakyapuri, New Delhi, Delhi 110021
Telephone: 011 2688 9053
Email: embassy.newdelhi@mfa.gov.tr
Officials
Ambassador - Mr. Fırat Sunel
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