India’s Relationship with Türkiye and Azerbaijan

General Studies Paper-2

Context: India’s trade relations with Türkiye and Azerbaijan are expected to come under strain due to Ankara and Baku backing Islamabad and condemning India’s recent strikes on terror camps in Pakistan.

Background

• India launched Operation Sindoor on May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-occupied-Kashmir in retaliation for the Kashmir’s Pahalgam terror attack on April 22.
  • All subsequent retaliations for Pakistani offensives were carried out under ‘Operation Sindoor’.
  • During the conflict, Pakistan used Turkish drones in its failed attempt to target Indian military installations.
• India and Pakistan announced reaching an understanding to stop all firings and military actions on land, air and sea.

India’s Trade relationship with Türkiye and Azerbaijan

• A bilateral trade agreement was signed in 1973, followed by a pact on setting up an India, Turkiye Joint Commission on Economic and Technical Cooperation in 1983.
• India’s exports to Türkiye stood at USD 5.2 billion during Apr-Feb 2024-25 as against USD 6.65 billion in 2023-24.
  • It accounts for only about 1.5 per cent of India’s total exports of USD 437 billion.
• India’s imports from Türkiye was USD 2.84 billion during Apr-Feb 2024-25 as against USD 3.78 billion in 2023-24. It accounts for only about 0.5 per cent of India’s total imports of USD 720 billion.
• India’s exports to Azerbaijan stood at only USD 86.07 million during Apr-Feb 2024-25 as against USD 89.67 million in 2023-24. It accounts for a meagre 0.02 per cent of India’s total outbound shipments.
  • Imports from Azerbaijan were USD 1.93 million during Apr-Feb 2024-25 as against USD 0.74 million in 2023-24.
  • It accounts for a meagre 0.0002 per cent of India’s total inbound shipments.
• India has a trade surplus with both nations.

Major products traded between these countries

• India’s exports to Türkiye include: Mineral fuels and oil (USD 960 million in 2023-24); electrical machinery and equipment; auto and its parts; organic chemicals; pharma products; tanning and dyeing items; plastic, rubber; cotton; man-made fibres and filaments, iron and steel.
  • Imports: Different types of marbles (blocks and slabs); fresh apples (about USD 10 million), gold, vegetables, lime and cement; mineral oil (USD 1.81 billion in 2023-24); chemicals; natural or cultured pearls; iron and steel.
• India’s exports to Azerbaijan : Tobacco and its products (USD 28.67 million in 2023-24); tea, coffee; cereals; chemicals; plastic; rubber; paper and paper board; and ceramic products.
  • Imports include: Animal fodder; organic chemicals; essential oils and perfumery; and raw hides and skins and leather (USD 1.52 million during Apr-Feb 2024-25). In 2023, India was the third-largest destination for Azerbaijan’s crude oil.

People-to-people ties

• There are currently around 3,000 estimated Indian nationals in Türkiye, including 200 students.
• Similarly, the Indian community in Azerbaijan comprises more than 1,500 people.
• As per estimates, about 3 lakh Indian tourists visited Türkiye in 2023 and over 2 lakh to Azerbaijan.

Emerging Issues

• Türkiye and Azerbaijan may come under strain because the two countries have criticised India’s strike on terror infrastructures in Pakistan and Pakistan-occupied-Kashmir.
  • Islamabad has also used Turkish drones in the conflict.
• India witnessed a surge in calls to boycott both countries.
  • This led to mass cancellations of travel bookings, withdrawal of tour promotions by Indian operators, and the suspension of academic MoUs by institutions like IIT Bombay and JNU.
• In fact, Indian traders too have started boycotting Turkish products such as apples and marble.