Understanding India’s Trade Relations with Turkey and Azerbaijan

India’s trade relations with Turkey and Azerbaijan are experiencing significant strain following both countries’ vocal support for Pakistan and criticism of India’s military actions against terror camps. This diplomatic tension has led to widespread calls within India to boycott products from these nations and avoid travel to them. Major travel platforms have responded by issuing advisories, while Indian traders have begun to withdraw from purchasing Turkish goods, including apples and marbles.

Background of the Tensions

The recent discord between India, Turkey, and Azerbaijan escalated after both nations condemned India’s military operations targeting terror infrastructure in Pakistan. This criticism came in the wake of ‘Operation Sindoor,’ launched on May 7, which aimed to dismantle terror camps in response to a deadly attack in Kashmir that resulted in 26 fatalities. The operation involved the destruction of nine terror camps located in Pakistan and Pakistan-occupied Kashmir.

Azerbaijan’s government expressed concerns over civilian casualties linked to India’s military actions and called for a diplomatic resolution. Meanwhile, Turkey’s Foreign Ministry described India’s airstrikes as “provocative,” warning of potential escalation into a larger conflict. Compounding these tensions, India has reported that Pakistan is utilizing Turkish-manufactured drones in its military operations, further aggravating the situation. Indian defense officials have asserted that their air defense systems effectively counter these threats, regardless of the technology used.

Current Trade Dynamics

Despite the growing tensions, trade between India, Turkey, and Azerbaijan remains relatively modest. India maintains a trade surplus with both countries. For the fiscal year 2024-25, India’s exports to Turkey reached approximately $5.2 billion, a decrease from $6.65 billion in the previous year. This figure represents about 1.5% of India’s total exports, which are valued at $437 billion. Conversely, imports from Turkey fell to $2.84 billion from $3.78 billion, accounting for roughly 0.5% of India’s total imports of $720 billion.

In terms of trade with Azerbaijan, India’s exports were recorded at $86.07 million during the same period, slightly down from $89.67 million in the previous year. This constitutes a mere 0.02% of India’s overall exports. The trade dynamics indicate that while both countries are important partners, the volume of trade is not substantial enough to withstand the current diplomatic fallout.

Key Products in Trade

The trade relationship between India and Turkey encompasses a variety of goods. India’s primary exports to Turkey include mineral fuels and oils, electrical equipment, automotive parts, chemicals, pharmaceuticals, and textiles. In contrast, India imports marble, fresh apples, gold, and various agricultural products from Turkey.

With Azerbaijan, India’s exports primarily consist of tobacco products, tea, coffee, and chemicals. The imports from Azerbaijan are limited, including animal fodder and essential oils. The bilateral trade agreement signed in 1973 and the establishment of a Joint Commission for Economic and Technical Cooperation in 1983 have laid the groundwork for these exchanges, although the current geopolitical climate poses challenges to their growth.

People-to-People Connections

Despite the diplomatic tensions, there are significant people-to-people ties between India and both Turkey and Azerbaijan. Approximately 3,000 Indian nationals reside in Turkey, including around 200 students. In Azerbaijan, the Indian community is smaller but still notable, with over 1,500 individuals living there.

Tourism also plays a role in the relationship, with an estimated 300,000 Indian tourists visiting Turkey in 2023, while more than 200,000 traveled to Azerbaijan. However, the recent calls for boycotts and travel advisories may impact future tourism flows, further complicating the already strained relations between these nations.

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