India’s Trade Ties with Turkey and Azerbaijan Under Strain Amid Geopolitical Tensions

New Delhi, May 14 – India's trade relations with Turkey and Azerbaijan are facing fresh challenges following both nations' vocal support for Pakistan and their criticism of India’s recent counter-terror operations across the border.

Backing of Pakistan Sparks Boycott Calls​

The diplomatic strain stems from Ankara and Baku siding with Islamabad and condemning India’s airstrikes targeting terror infrastructure in Pakistan and Pakistan-occupied Kashmir. The operation, named Operation Sindoor, was launched by India on May 7 in retaliation for the Pahalgam terror attack that occurred on April 22.

India's response included multiple retaliatory actions, all conducted under Operation Sindoor. During the conflict, Pakistan reportedly used Turkish drones in its attempts to strike Indian military targets, which further fueled anti-Turkey sentiment within India.

In response, Indian citizens and businesses have begun to call for a boycott of Turkish goods and tourism. Online travel portals like EaseMyTrip and Ixigo have issued advisories discouraging travel to Turkey and Azerbaijan. Traders nationwide have also started rejecting Turkish imports, particularly marble and apples.

Trade Volumes and Impact​

Despite the uproar, trade with these nations forms a relatively small portion of India’s overall economic engagement.

India-Turkey Trade Snapshot:​

• Exports: USD 5.2 billion (Apr-Feb 2024-25) vs USD 6.65 billion (2023-24)
• Imports: USD 2.84 billion (Apr-Feb 2024-25) vs USD 3.78 billion (2023-24)
• Trade surplus: India has a positive trade balance with Turkey
• Share in total trade: Exports (1.5%), Imports (0.5%)

Major Indian exports to Turkey include mineral fuels and oil (USD 960 million in 2023-24), electrical machinery, automobiles and parts, chemicals, pharmaceuticals, plastics, rubber, cotton, textiles, and iron and steel.

Turkey imports marble (blocks and slabs), fresh apples (USD 10 million), gold, vegetables, cement, mineral oils (USD 1.81 billion), and other raw materials like chemicals and pearls.

India and Turkey signed a bilateral trade agreement in 1973, which was followed by the formation of the India-Turkey Joint Commission on Economic and Technical Cooperation in 1983.

India-Azerbaijan Trade Snapshot:​

• Exports: USD 86.07 million (Apr-Feb 2024-25) vs USD 89.67 million (2023-24)
• Imports: USD 1.93 million (Apr-Feb 2024-25) vs USD 0.74 million (2023-24)
• Trade surplus: India maintains a substantial trade surplus
• Share in total trade: Exports (0.02%), Imports (0.0002%)

India exports tobacco products (USD 28.67 million in 2023-24), tea, cereals, chemicals, plastics, and ceramics to Azerbaijan. It imports animal fodder, essential oils, perfumery, and leather products. In 2023, India was also the third-largest destination for Azerbaijan's crude oil.

People-to-People Connections​

While trade numbers are modest, people-to-people ties exist. Turkey hosts around 3,000 Indian nationals, including 200 students. Azerbaijan has a smaller Indian diaspora, estimated at over 1,500 individuals.

Outlook​

The current geopolitical fallout may further shrink economic and tourism exchanges between India and these countries. As sentiments harden, India’s businesses and travellers appear poised to reassess engagements with Turkey and Azerbaijan amid nationalistic calls for economic caution.