India's Bilateral Trade with Turkey: A Delicate Balance

Strategic Insights -

India's bilateral trade with Turkey has grown significantly, with a trade surplus of $2.73 billion, largely driven by engineering exports and organic and inorganic chemicals. However, the Indian government is hesitant to extend the ban on Turkish companies in critical infrastructure to bilateral trade, citing the potential for a counterproductive blockade. Industry groups have called for a ban on imports of items such as apples and marbles, but the government is weighing the economic implications of such a move. This delicate balance is further complicated by Turkey's recent support for Pakistan during Operation Sindoor, which has led to calls for a boycott of Turkish products.

Key Takeaways:

  • India has a trade surplus of $2.73 billion with Turkey, driven primarily by engineering exports, which comprise over 50% of the total exports.
  • India's outbound shipments to Turkey consist mainly of industrial exports, including engineering goods, electronics, and organic and inorganic chemicals, which have increased over the past five years.
  • Turkey's exports to India are largely limited to fruits, nuts, gold, and marble, with the majority of marble imports coming from Turkey.
  • Industry groups have sought a ban on imports of apples and marbles from Turkey, citing a potential impact on the domestic horticulture economy and the financial distress of orchardists in hill states.
  • The Micro, Small and Medium Enterprises (MSME) sector dominated India's engineering exports to Turkey in FY25, contributing nearly 35-40% of the total exports.
  • India's exports to Turkey in FY25 totaled $5.72 billion, while imports stood at $2.99 billion, with the majority of imports being fruits and nuts.

Statistics:

  • India's trade surplus with Turkey is $2.73 billion.
  • Engineering exports to Turkey in FY25 totaled $3 billion, comprising over 50% of the country's total exports to Turkey.
  • The MSME sector contributed nearly 35-40% of India's engineering exports to Turkey in FY25.
  • India's imports from Turkey in FY25 totaled $2.99 billion, with the majority being fruits and nuts worth $107.12 million.
  • India imported gold worth $270.83 million from Turkey in FY25, a 159.02% increase from the $104.56 million worth of gold imports in FY24.

Sources:

  • "Byline: Ravi Dutta Mishra Amid moves to curb the role of Turkish companies in critical infrastructure, citing national security grounds, there is palpably less appetite within the Government to extend this approach to the bilateral trade basket...". (The Indian Express)
  • "Last month, apple-growers from Himachal Pradesh have sought a ban on apple imports from Turkey. But India runs a trade surplus with Turkey and we have to keep in mind our exporters' interests too." (The Indian Express)
  • "In contrast, Turkey's exports to India are largely limited to fruits, nuts, gold, and marble." (The Indian Express)
  • "According to them, apples are not just a commercial crop but the economic backbone of hill states." (The Indian Express)
  • "Marble processors from Udaipur also wrote to the Prime Minister's Office (PMO) last month seeking import curbs on marble from Turkey, citing its support to Pakistan during Operation Sindoor -- India imports the majority of its marble from Turkey." (The Indian Express)
  • "Official trade data showed that exports to Turkey in FY25 totalled $5.72 billion, largely driven by engineering exports, which comprise over 50 per cent at $3 billion." (The Indian Express)
  • "Notably, the Micro, Small and Medium Enterprises (MSME) sector dominated the segment, contributing nearly 35-40 per cent." (The Indian Express)
  • "India also imported gold worth $270.83 million from Turkey in FY25 -- 159.02 per cent higher than the $104.56 million worth of gold imports in FY24." (The Indian Express)
  • "The Bombay High Court on May 26 temporarily halted Mumbai International Airport Limited (MIAL) from finalising tenders for ground and bridge handling services until Celebi's plea against its contract termination is heard after the court reopens in June." (The Indian Express)