India's Trade Relations with Turkey and Azerbaijan

India's trade relations with Turkey and Azerbaijan have come under renewed strain after both countries criticised India's recent military strikes on terror camps located in Pakistan and Pakistan-occupied Kashmir (PoK), as part of Operation Sindoor. Their public support for Pakistan in this conflict has led to strong reactions in India, including calls for boycott of goods and advisories against travel to these countries.

Trade Ties between India and These Countries

• Though not major trading partners, both Turkey and Azerbaijan engage in moderate trade with India. India enjoys a trade surplus with both nations.
• ·         India–Turkey Trade
  • Exports (Apr–Feb 2024–25): USD 5.2 billion
    (Top items: mineral fuels, electrical equipment, chemicals, vehicles, textiles, pharma)
  • Imports: USD 2.84 billion
    (Key imports: marble, apples, gold, mineral oil, chemicals, steel)
  • India exports almost double the amount it imports from Turkey, giving it a favourable balance.
• ·         India–Azerbaijan Trade
  • Exports: USD 86 million
    (Key items: tobacco, tea, chemicals, rubber, ceramic products)
  • Imports: USD 1.52 million
    (Limited to: animal fodder, essential oils, skins, leather)
  • Trade volume with Azerbaijan is very limited, and mostly symbolic from a macroeconomic view.
• Strategic and People-to-People Dimensions
• Bilateral Agreements: India and Turkey signed a trade agreement in 1973, and created a Joint Commission for Economic and Technical Cooperation in 1983. However, political trust has been eroding in recent years.
• People Presence:
  • Turkey: 3,000 Indian nationals (including ~200 students)
  • Azerbaijan: 1,500 Indians, mainly professionals and businesspersons
• Tourism:
  • 3 lakh Indians visited Turkey in 2023
  • 2 lakh visited Azerbaijan

Underlying Tensions (Beyond Trade)

• Turkey's Ideological Posture: Turkey has been increasingly vocal on issues involving Muslim solidarity, and has often raised the Kashmir issue at international forums like the UN. It also has defence and diplomatic ties with Pakistan, which complicates India's bilateral engagement.
• Azerbaijan's Alignment with Turkey: Azerbaijan’s political and military closeness with Turkey (its “one nation, two states” principle) often reflects in its foreign policy. This alignment affects how Azerbaijan responds to South Asian conflicts, especially those involving Pakistan.
• India's Diplomatic Balancing: While India has growing energy and infrastructure interests in Central Asia and the Caucasus, these tensions show the fragility of diplomatic relations when defence ties and ideological positions intersect with regional rivalries.