Eye on strong export advantage, India not keen to dent Turkey trade ties with curbs | Business News


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 despite calls from industry groups to ban the import of items such as apples and marbles. Reason: India runs a $2.73 billion bilateral goods trade surplus and any blockade could be counterproductive.

“We have received a number of representations to ban imports from Turkey. 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. It (a trade ban) could be a strong geopolitical message, but it’s about how far you want to take it,” a Government official told The Indian Express.

The trade surplus assumes significance as India’s outbound shipments to Turkey largely consist of industrial exports, such as engineering goods, electronics, and organic and inorganic chemicals, which have increased over the past five years. In contrast, Turkey’s exports to India are largely limited to fruits, nuts, gold and marble. Turkey had also stepped up petroleum product imports from India following the Ukraine war but this category has seen a significant decline in FY25.

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Last month, apple-growers from Himachal met Union Commerce Ministry officials to seek a ban on apple imports, stating that subsidised apples from Turkey are crippling the domestic horticulture economy and pushing orchardists in the state into financial distress. According to them, apples are not just a commercial crop but the economic backbone of hill states.

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.

Festive offer

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. Notably, the Micro, Small and Medium Enterprises (MSME) sector dominated the segment, contributing nearly 35-40 per cent.

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Amid calls for boycott

Turkey’s support for Pakistan, including supplies of drones, during Op Sindoor had led to India cancelling the security clearance for Turkish aviation firm Celebi — and tourism numbers to Turkey showing a sharp dip. But India holds the edge in bilateral trade: exports in FY25 totalled $5.72 bn, driven by engineering exports, while imports stood at $2.99 bn, mainly of fruits and nuts.

Imports from Turkey during the last financial year stood at $2.99 billion — imports in the fruits and nuts category were $107.12 million, up nearly 10 per cent from $96.82 million the previous financial year. 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.

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Last month, the Bureau of Civil Aviation Security (BCAS) had revoked the security clearance of the Indian arm of Turkey-headquartered airport ground-handling major Celebi Aviation Holding on grounds related to “national security”.

However, 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 reported last month that Indian tourists are increasingly cancelling holidays to Turkey and Azerbaijan, which had also supported Pakistan, as reflected in visa applications. While Turkey registered 3 lakh Indian tourists in 2024, Azerbaijan saw 2.44 lakh. Industry representatives expect that a chunk of these numbers will now be diverted to Central Asian countries such as Kazakhstan and Uzbekistan.

Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. … Read More

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