COUNTRY PROFILE REPORT OF ITJ DIVISION, DGCI&S

INDIA-TURKEY BILATERAL TRADE RELATIONS

INTRODUCTION & BRIEF ECONOMIC OVERVIEW

1. The Republic of Turkey lies partly in south-eastern Europe and partly in western Asia. The European and Asian
portions of the country (known, respectively, as Thrace and Anatolia) are separated by the Sea of Marmara, linking
the Black Sea and the Aegean Sea. Turkey has an extensive coastline: on the Black Sea, to the north; on the
Mediterranean Sea, to the south; and the on the Aegean Sea, to the west. Most of Turkey lies in Asia, the vast
Georgia, the Nakhichevan Autonomous Republic (part of Azerbaijan) and Iran, and to the south by Iraq and Syria.
The smaller European part of the country is bordered to the west by Greece and Bulgaria. Turkey is a member of the
UN, WTO, BIS, OECD, NATO, Council of Europe, OSCE, BSEC, Asian Development Bank, ECO, OIC and an
Associate Member of the WEU, and has applied to join the EU.

2. Turkey is a founding member of the OECD and G20, and an upper-middle-income country. It is the 18th-largest
economy by nominal and the 11th-largest economy by PPP-adjusted GDP in the world. According to IMF Executive
Board 2024 Article IV Consultation with Turkey October 11, 2024, Turkey’s “Headline inflation has fallen as tighter
financial conditions are weighing on domestic demand. Market sentiment has sharply improved, with domestic and
foreign investors shifting into lira-denominated assets while lower commodity prices, buoyant exports, and reduced
gold imports have strengthened the current account, supporting a large improvement in both the gross and net
reserves position. The financial and corporate sectors appear to have weathered the policy tightening and financial
liberalization so far. Credit default swaps (CDS) spreads are now at about half their mid-2023 levels”.

A snapshot of Turkey’s select economic indicators is as under.

TABLE – 1

Turkey: Selected Economic Indicators, 2019−29

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Projected.
Real sector (Percent)
Real GDP growth rate 0.8 1.9 11.4 5.5 5.1 3.0 2.7 3.2 3.4 3.7 3.9
Contributions to real GDP
growth
Private consumption 0.9 1.9 9.2 11.7 9.5 1.1 0.3 1.9 2.0 2.0 2.0
Public consumption 0.5 0.3 0.4 0.6 0.3 0.4 0.5 0.5 0.4 0.5 0.4
Investment (incl. -3.0 4.8 -3.2 -7.5 -1.6 0.6 2.6 1.1 1.2 1.6 1.7
inventories)
Net exports 2.4 -5.2 5.0 0.7 -3.1 0.9 -0.6 -0.2 -0.2 -0.3 -0.2
Output gap -2.1 -4.6 1.1 1.5 1.9 0.7 -0.3 -0.5 -0.5 -0.2 0.0
GDP deflator growth rate 13.9 14.8 29.0 96.0 68.2 60.0 31.4 20.4 16.6 15.3 15.2
Inflation (period-average) 15.2 12.3 19.6 72.3 53.9 60.9 33.0 19.2 16.0 15.0 15.0
Inflation (end-year) 11.8 14.6 36.1 64.3 64.8 43.0 24.0 17.2 15.3 15.0 15.0

Unemployment rate 13.7 13.1 12.0 10.4 9.4 9.3 9.9 9.6 9.5 9.3 9.2

Fiscal sector (Percent of GDP)

Nonfinancial public sector -5.0 -4.7 -3.0 -2.7 -5.4 -5.3 -3.7 -3.1 -3.2 -3.1 -3.1
overall balance

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General government -3.0 -4.0 -2.6 -0.8 -5.2 -5.3 -3.5 -3.0 -3.0 -3.0 -3.0
overall balance (headline)
1/
General government gross 32.4 39.4 40.4 30.8 29.3 25.2 26.0 26.0 26.0 25.9 25.6
debt (EU definition)

External sector (Percent of GDP)

Current account balance 2.0 -4.3 -0.8 -5.1 -4.0 -2.2 -2.1 -2.0 -1.9 -1.9 -1.9
Gross external debt 54.5 59.8 53.9 50.5 45.2 41.3 39.8 40.9 40.4 39.9 39.3
Gross financing 18.0 24.8 21.0 22.9 21.2 19.1 20.0 20.5 20.1 20.0 19.8
requirement
Monetary conditions
(Percent)
Real average cost of 5.4 -1.7 -1.9 -59.4 -35.4 … … … … … …
CBRT funding to banks
Growth of broad money 27.3 33.9 53.0 59.2 70.1 … … … … … …
(M2)
Growth of credit to private 10.9 34.7 37.0 54.7 54.0 … … … … … …
sector

Sources: Turkish authorities; and IMF staff estimates and projections.

1/ Headline (or authorities' definition), which includes items excluded from the IMF 'program' definition.

Sources: IMF Executive Board Concludes 2024 Article IV Consultation with Turkey October 11, 2024.

FOREIGN TRADE

3. As per recent available inputs on WITS (World Integrated Trade Solution), the five major merchandise export
partners of Turkey are Germany, United States, Iraq, United Kingdom and Italy. On the other hand, five major import
partners of Turkey are Russian Federation, China, Special Categories, Germany and Switzerland. Major five
exported goods of Turkey are (i) Petroleum oils, etc., (excl. crude); preparation, (ii) Art. Of jewellery and parts
thereof,
(iii) Diesel powered trucks, (iv) Bars & rods, and (v) Automobiles nes including gas turbine powered. On the other
hand, major five imported goods of Turkey are (i) Gold in unwrought forms non-monetary, (ii) Petroleum oils, etc.,
(excl. crude); preparation, (iii) Ferrous waste and scrap, iron or steel, nes, (iv) Bituminous coal, not agglomerated and
(v) Aluminium unwrought, not alloyed.

4. Turkey’s total exports globally in 2020 were of the order of US$ 169,658 million. It had scaled up to US$ 261,855
million in 2024. Exports from Turkey had steeply increased by 32.75% in the year 2021 just after the initial serious
impact of Covid-19 pandemic followed by another 12.86% increase in 2022. During the period from 2020 to 2024,
the annual average compound rate of growth of exports was 11.46%.

5. Turkey’s total imports from the world in 2020 were of the order of US$ 219,514 million and had touched US$
344,020 million mark in 2024. During the period from 2020 to 2024, the annual average compound rate of growth of
imports was 11.89%.

6. Turkey faced an overall Balance of Trade deficit from 2020 and 2024 and it had declined from USD 49,856
million in 2020 to USD 82,165 million in 2024. During the period from 2020 to 2024, the annual average compound
rate of growth of total volume of trade was 11.70%.

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 TABLE – 2

TURKEY'S TOTAL EXPORTS AND IMPORTS, VOLUME OF TRADE

AND BALANCE OF TRADE BETWEEN 2020 TO 2024

(Figures in USD Million)

Percentage
Year Exports Percentage Imports Percentage Volume Growth in Balance
Growth in Growth in of Vol. of of
Exports Imports Trade Trade Trade
2020 169658 219514 3,89,172 -49856
2021 225214 32.75 271426 23.65 4,96,640 27.61 -46212
2022 254170 12.86 363711 34.00 6,17,881 24.41 -109541
2023 255627 0.57 361967 -0.48 6,17,594 -0.05 -106340
2024 261855 2.44 344020 -4.96 6,05,875 -1.90 -82165

Annual
Compound
Growth
Rate 11.46 11.89 11.70

NOTE : Figures relate to calendar year (January to December)

SOURCE: UN COMTRADE PUBLICATION

Figure - 1

Turkey's Exports, Imports and BoT 2020-2024

400000

300000

200000
USD Mln

100000

0
2020 2021 2022 2023 2024
-100000

-200000

Exports Imports Balance of Trade

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BILATERAL TRADE WITH INDIA

Merchandise Trade

7. The India-Turkey economic and commercial cooperation constitutes an important dimension of the bilateral
relationship. Bilateral Trade Agreement between India and Türkiye was signed in 1973, followed by an Agreement
on setting up an India–Türkiye Joint Commission on Economic and Technical Cooperation (JCETC) in 1983. Under
this Agreement, JCETC meetings are held alternately in India and Turkey. Co-chaired by the trade ministers of the
two countries, the last (10th) session of JCETC was held in New Delhi in January 2014. Turkey ranked 18th as an
export destination of India in FY 2023-24. India had exported to Turkey almost 1.52% of it’s total export value in
FY2023-24. In the same financial year imports from Turkey was 0.56% of India’s total import value. Almost 0.93%
of India’s total international trade value of goods was between India and Turkey as has been recorded in DGCI&S
data base for FY 2023-24.

8. Indo-Turkey total volume of bilateral trade in FY 2019-20 was of the order of US$ 7,086.04 million. It had
scaled to US$ 10,436.92 million in FY 2023-24. The annual compound growth rate of total volume comprising both
exports and imports during the period from 2019-20 to 2023-24 had been of the order of 10.16%.

9. It is seen from the available figures that between 2019-20 and 2023-24, India has had a surplus Balance of Trade
with Turkey. It has been observed that exports from India to Turkey increased steeply by 120.50% in FY2021-22.
The annual average compound rate of growth of Exports was 7.58% during the period under review. On the other
hand, imports from Turkey to India increased by 110.78% in FY 2022-23 but it was a 36.08% hike just after the
pandemic hit year 2021-22. During the period from 2019-20 to 2023-24, the annual average compound rate of
growth of imports was 15.61%.

A snapshot of India’s merchandise trade statistics with respect to Turkey is presented in Table 3 Figure 2.

TABLE - 3
INDIA'S MERCHANDISE EXPORTS & IMPORTS w.r.t. TURKEY
FY 2019-2020 to 2023-2024
(Value in USD Million)

Imports Percentage
Exports Percentage from Percentage Volume Growth in Balance
from India Growth in Turkey to Growth in of Vol. of of
Year to Turkey Exports India Imports Trade Trade Trade
2019-20 4969.47 2116.56 7086.04 2852.92
2020-21 3952.89 -20.46 1467.33 -30.67 5420.22 -23.51 2485.56
2021-22 8716.13 120.50 1996.75 36.08 10712.88 97.65 6719.38
2022-23 9609.69 10.25 4208.84 110.78 13818.53 28.99 5400.85
2023-24 6654.84 -30.74 3781.08 -10.16 10436.92 -24.47 2874.76
Annual
Compound
Growth Rate 7.58 15.61 10.16
NOTE : Figures relate to Financial Year (April to March)
SOURCE: DGCI&S, M/o C&I

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 Figure 2

India's Exports, Imports & Balance of Trade with respect to Turkey 2019-20 to 2023-24

12000.00

10000.00

8000.00
INR Crores

6000.00

4000.00

2000.00

0.00
2019-20 2020-21 2021-22 2022-23 2023-24

10. Additionally, from Tables 4 & 5 presented below the following are stated:

a. (i) Petroleum Products. (ii) Auto Components/Parts and (iii) Iron and Steel had occupied the top three slots
in India’s exports to Turkey in FY 2023-24. Petroleum Products had occupied 14.34% share of India’s total exports
to Turkey in FY2023-24.
b. (i) Petroleum Crude (ii) Inorganic Chemicals and (iii) Granite, Natural. Stone and Products were the three
major commodities in India’s imports list from Turkey in the year 2023-24, India had imported a significant amount
of Petroleum Crude from Turkey with a share of 47.64% of total imports from Turkey recorded in 2023-24.

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 TABLE-4

INDIA'S MAJOR ITEMS OF MERCHANDISE EXPORTS TO TURKEY

2019-2020 TO 2023-2024 AND THEIR GROWTH RATES
(Value in USD Million)
Name of the
Sl. Merchandise Annual Growth
No. Commodities Value of Exports Rates
2019- 2020- 2021- 2022- 2023- 20-21 21-22 22-23 23-24
20 21 22 23 24 over over over over
2019- 2020- 2021- 2022-
20 21 22 23
1 Petroleum Products 854.03 299.45 2175.85 3222.01 954.28 -64.94 626.62 48.08 -70.38
Share in total export 17.19 7.58 24.96 33.53 14.34
Auto
2 Components/Parts 267.34 291.73 350.01 401.83 555.19 9.12 19.98 14.81 38.17
Share in total export 5.38 7.38 4.02 4.18 8.34
-
3 Iron And Steel 138.87 197.61 1198.34 723.68 426.79 42.30 506.42 39.61 -41.03
Share in total export 2.79 5.00 13.75 7.53 6.41
Telecom
4 Instruments 169.47 85.38 81.19 117.56 402.72 -49.62 -4.91 44.80 242.57
Share in total export 3.41 2.16 0.93 1.22 6.05
Manmade Yarn, -
5 Fabrics, Made-ups 436.60 274.28 543.64 484.85 378.12 -37.18 98.21 10.81 -22.01
Share in total export 8.79 6.94 6.24 5.05 5.68
Indl. Machinery
6 For Dairy Etc. 81.30 131.05 239.16 249.29 307.53 61.19 82.50 4.24 23.36
Share in total export 1.64 3.32 2.74 2.59 4.62
Residual Chemical
7 and Allied Prods. 127.82 219.20 174.22 205.02 196.34 71.49 -20.52 17.68 -4.23
Share in total export 2.57 5.55 2.00 2.13 2.95
IC Engine and
8 Parts 156.85 136.92 188.98 210.52 189.41 -12.71 38.02 11.40 -10.03
Share in total export 3.16 3.46 2.17 2.19 2.85
-
9 Dyes 220.84 180.74 253.93 185.28 176.35 -18.16 40.49 27.04 -4.82
Share in total export 4.44 4.57 2.91 1.93 2.65
Two And Three -
10 Wheelers 2.94 11.59 81.17 65.39 169.19 294.22 600.35 19.44 158.74
Share in total export 0.06 0.29 0.93 0.68 2.54
Total export to
TURKEY 4969.47 3952.89 8716.13 9609.69 6654.84 -20.46 120.50 10.25 -30.75
NOTE : Figures relate to each Financial Year (April to March)
SOURCE: DGCI&S, M/o C&I

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 TABLE -5

INDIA'S MAJOR ITEMS OF MERCHANDISE IMPORTS FROM TURKEY

2019-2020 TO 2023-2024 AND THEIR GROWTH RATES
(Value in USD Million)
Name of the
Merchandise Annual Growth
Commodities Value of Imports Rates
Sl. 20-21 21-22 22-23 23-24
No. 2019-20 2020-21 2021-22 2022-23 2023-24 over over over over
2019- 2020- 2021- 2022-
20 21 22 23
1 Petroleum: Crude 781.36 354.02 451.48 1778.82 1801.12 -54.69 27.53 294.00 1.25
Share in total imports 36.92 24.13 22.61 42.26 47.64
2 Inorganic Chemicals 158.10 115.81 76.71 140.53 187.23 -26.75 -33.76 83.20 33.23
Share in total imports 7.47 7.89 3.84 3.34 4.95
Granite, Natural
3 Stone and Products 101.83 81.20 143.33 185.69 110.78 -20.26 76.51 29.55 -40.34
Share in total imports. 4.81 5.53 7.18 4.41 2.93
4 Vegetable Oils 4.86 39.99 99.87 219.91 147.91 722.84 149.74 120.20 -32.74
Share in total import 0.23 2.73 5.00 5.22 3.91
Indl. Machinery For
5 Dairy Etc. 102.40 90.56 118.51 115.91 130.07 -11.56 30.86 -2.19 12.22
Share in total import 4.84 6.17 5.94 2.75 3.44
6 Iron And Steel 54.81 60.28 99.69 169.77 121.42 9.98 65.38 70.30 -28.48
Share in total import 2.59 4.11 4.99 4.03 3.21
-
7 Gold 25.05 26.12 226.76 104.56 100.00 768.15 -53.89
Share in total import 1.18 1.31 5.39 2.77
8 Fresh Fruits 37.32 44.51 88.12 88.83 95.76 19.27 97.98 0.81 7.80
Share in total import 1.76 3.03 4.41 2.11 2.53
Electric Machinery
9 and Equipments 88.22 120.86 69.22 178.90 92.17 37.00 -42.73 158.45 -48.48
Share in total import 4.17 8.24 3.47 4.25 2.44
10 Pulses 45.47 17.02 7.50 4.40 87.19 -62.57 -55.93 -41.33 1881.59
Share in total import 2.15 1.16 0.38 0.10 2.31
Total import from
TURKEY 2116.56 1467.33 1996.75 4208.84 3781.08 -30.67 36.08 110.78 -10.16
NOTE : Figures relate to each Financial Year (April to March)
SOURCE: DGCI&S, M/o C&I

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Indian Trade Journal is reserved by the Directorate General of Commercial Intelligence &
Statistics, Kolkata – 700 107.

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