India’s $12B Trade with Türkiye and Azerbaijan Expands

India’s Thriving $12 Billion Trade Partnership with Türkiye and Azerbaijan

NEW DELHI – India’s trade with Türkiye (Turkey) and Azerbaijan has reached an impressive $12 billion annually, driven by dynamic exports, imports, and energy partnerships. This robust economic relationship is further strengthened by a surge in tourism and direct flight connections, despite ongoing regional tensions.

India is emerging as a significant importer of Azerbaijani crude oil while simultaneously becoming a growing export partner for Türkiye. The travel and tourism sectors are also experiencing remarkable double-digit growth, enhancing the bilateral ties between these nations.

India’s $12 Billion Trade with Türkiye and Azerbaijan

India’s bilateral trade with Türkiye amounted to $10.43 billion in the fiscal year 2023–24, according to the Ministry of External Affairs (MEA). The country exported goods worth $6.65 billion to Türkiye while importing $3.78 billion in return. Although this figure reflects a slight decrease from the previous fiscal year’s $13.8 billion, it underscores a resilient economic partnership.

Engagement with Azerbaijan has shown significant growth as well. From a mere $50 million in 2005, bilateral trade skyrocketed to $1.435 billion in 2023. India imported $1.235 billion worth of goods, primarily crude oil, while exporting $201 million in products. Notably, India ranks as the third-largest destination for Azerbaijan’s crude oil, accounting for 7.6% of its total exports valued at $1.227 billion.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) from Türkiye to India reached $227.5 million between April 2000 and December 2023. Conversely, Indian companies have invested around $200 million in Türkiye from August 2000 to March 2024.

Rising Travel and Tourism Between India, Türkiye, and Azerbaijan

The travel sector has witnessed a remarkable increase as well. In 2023, approximately 117,302 Indian tourists visited Azerbaijan, nearly doubling the 2022 figure of 60,731. By early 2024, this number had already surpassed 243,000. India is currently the fourth-largest source of tourists for Azerbaijan, following Russia, Türkiye, and Iran.

Direct air connectivity has contributed significantly to this tourism boom, with ten weekly flights between Delhi (DEL) and Baku (GYD) operated by IndiGo (6E) and Azerbaijan Airlines (J2). Türkiye also experienced a 20.7% year-on-year increase in Indian tourist arrivals, with 330,000 Indians visiting in 2023, up from 274,000 in 2022.

However, recent border tensions between India and Pakistan have impacted travel sentiment. As Türkiye and Azerbaijan have shown diplomatic support for Pakistan, several Indian travel operators have paused bookings to these destinations, advising caution to travelers.

Expanding Economic Cooperation Beyond Energy

India’s growing presence in Türkiye and Azerbaijan signifies a diversification of economic cooperation beyond traditional sectors such as energy and travel. Discussions are increasingly encompassing pharmaceuticals, textiles, construction, and IT services.

Indian companies are actively exploring infrastructure and renewable energy projects in Azerbaijan, while Türkiye seeks to enhance its industrial exports to India. Despite occasional political tensions, India’s long-term economic agenda with these countries remains focused on expanding trade, boosting investment flows, and deepening people-to-people ties.

In conclusion, the flourishing trade relationship between India, Türkiye, and Azerbaijan presents significant opportunities for growth and collaboration. As these nations navigate regional challenges, their commitment to strengthening economic and cultural ties will likely yield fruitful results for years to come.

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