Business

Exploring the Impact of India's Conflict with Pakistan on Its Trade Relations with Turkey and Azerbaijan

Challenges in Trade Relations

India's trade relations with Turkey and Azerbaijan are under scrutiny following their support for Pakistan and criticism of India's recent military actions in Pakistan-occupied Kashmir. This has led to calls within India for boycotting goods from these countries and avoiding travel there.

Explainer: India's trade relations with Turkey, Azerbaijan and how it may be affected after Pakistan conflict

Why the Strain?

The tension escalated after Turkey and Azerbaijan condemned India's 'Operation Sindoor,' aimed at dismantling terror infrastructure in Pakistan. The operation was a response to the Pahalgam terror attack in Kashmir, which resulted in 26 casualties.

Current Trade Overview

India maintains a trade surplus with both Turkey and Azerbaijan, though the volume is relatively small. For instance, India's exports to Turkey accounted for 1.5% of its total exports, with imports from Turkey making up about 0.5% of total imports.

Key Traded Products

India's Exports to Turkey: Mineral fuels, electrical equipment, auto parts, and pharmaceuticals.
Imports from Turkey: Marble, apples, and gold.
India's Exports to Azerbaijan: Marbles, fresh apples, and iron and steel.
Imports from Azerbaijan: Animal fodder, essential oils, and organic chemicals.

People-to-People Ties

Approximately 3,000 Indians reside in Turkey, including 200 students, while Azerbaijan hosts over 1,500 Indian nationals.

Tourism Impact

An estimated 300,000 Indian tourists visited Turkey in 2023, with over 200,000 traveling to Azerbaijan, highlighting the cultural and economic ties between these nations.