Exploring the Decline: How India’s Trade Relations with Turkey and Azerbaijan are Facing Challenges

India’s trade relationships with Turkey and Azerbaijan are facing new challenges following their support for Pakistan during recent tensions. This includes criticism of India after military operations in response to militant attacks.

Calls for a boycott of these nations and their products have emerged from various parts of India. The Azerbaijani government has raised concerns about potential civilian casualties and urged for diplomacy, while Turkey’s reaction was to label Indian actions as “provocative.”

Interestingly, during military operations, Indian forces identified Turkish-made drones being used by Pakistan. The Director General of Air Operations remarked that India’s defense technology effectively thwarted these threats.

Economist Sharad Kohli noted that while the diplomatic fallout is regrettable, the impact on India’s trade may be limited—Turkey and Azerbaijan make up a small part of Indian trade. However, their economies, especially in areas like marble exports from Turkey and oil processing in Azerbaijan, could suffer significantly if Indian businesses cut ties.

Kohli also suggested that India might look to strengthen connections with countries that share its interests, like Armenia and Greece, which have tense relations with Turkey and Azerbaijan. This shift could enhance India’s strategic positioning in the region.

Online travel agencies are also reacting—platforms like EaseMyTrip and Ixigo are advising travelers to steer clear of Turkey and Azerbaijan. It’s reported that Indian travelers contribute significantly to Turkey’s tourism, spending about $1,000 each on average. The loss of this revenue could hit Turkey hard.

In 2023, approximately 300,000 Indian tourists visited Turkey, attracted by its rich culture and picturesque landscapes, while over 200,000 visited Azerbaijan. These numbers have been on the rise, growing by 15-20% annually. Travel websites in India have begun canceling promotions related to these countries, which could further diminish tourist arrivals.

Additionally, with around 4,500 Indians living in Turkey and Azerbaijan, the diplomatic strain could disrupt personal connections and economic ties within communities.

Khandelwal, Secretary General of the Confederation of All India Traders, emphasized that traders in India are prepared to react firmly against nations that oppose them. The upcoming national conference by CAIT will decide if the boycott will extend to a complete halt of trade with Turkey and Azerbaijan.

This situation highlights the intertwining of trade and politics. As India navigates these challenges, it may further prioritize relationships with nations that support its stance against terrorism in international forums.

For a closer look at these trade dynamics, you can refer to recent reports from sources like The Economic Times, which provide insights into how geopolitical tensions influence economic relationships.



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