India’s economic and strategic relationship with Turkey is undergoing a significant reassessment, driven by recent geopolitical tensions and Turkey’s stance on sensitive issues like Kashmir.

Turkish firms have established a notable presence in India across sectors such as construction, metro rail, tunnels, manufacturing, aviation, education, and media, with operations spanning at least five states-Gujarat, Maharashtra, Uttar Pradesh, Jammu & Kashmir, and Delhi.

Over the past decade, the two countries have signed multiple Memoranda of Understanding (MoUs) covering diverse areas from trade in poppy seeds to cooperation in telecommunications, culture, and diplomacy.

Bilateral trade between India and Turkey stood at approximately US$10.4 billion in FY24, with Turkey ranking 45th in FDI equity inflows into India, totalling US$240.18 million from April 2000 to September 2024.

These investments span strategic sectors like construction, manufacturing, aviation, and metro rail infrastructure and also knowledge sharing sectors like education and media. Meanwhile, several Memoranda of Understanding (MoUs) have also been signed between the two nations over the last decade — ranging from trade in poppy seeds to cooperation in telecommunications, culture, education, media and even diplomacy.

However, following Operation Sindoor and Turkey’s repeated remarks on Kashmir at international forums, as well as its growing alignment with Pakistan, the Modi government has shifted its approach. Indian authorities are now systematically scrutinising all projects involving Turkish firms, reassessing both ongoing and concluded agreements.

This includes major infrastructure projects-such as Turkish involvement in the Atal Tunnel in Jammu & Kashmir and metro rail projects in cities like Lucknow, Pune, and Mumbai-as well as joint ventures in manufacturing and aviation operations at Indian airports. These projects represent critical infrastructure and public-facing services, underscoring the strategic importance of the review.

While no official cancellations have been announced yet, the intent is clear: India is preparing to quietly unwind or terminate business ties that do not align with its core strategic interests. This reassessment is being conducted with a low profile, focusing on detailed data collection and analysis of each engagement.

Some long-term MoUs and trade deals may remain unaffected in the immediate term, but future investments and agreements are likely to be impacted by the evolving geopolitical landscape and Turkey’s continued interference on the Kashmir issue.

Trade data reflects this cooling relationship. India’s exports to Turkey in FY24-25 were $5.2 billion, while imports stood at $2.84 billion, both constituting a small fraction of India’s overall trade basket. 

Bilateral trade has contracted by nearly 63% from FY22-23 levels, and Indian traders have reportedly boycotted Turkish goods such as apples and marble. The government’s recalibration signals a broader economic distancing from Turkey, with future cooperation increasingly uncertain as India asserts its strategic autonomy on the global stage.

India is actively reassessing and, where necessary, unwinding billion-dollar Turkish deals across critical sectors, reflecting a new phase in bilateral relations shaped by strategic priorities and geopolitical realities.

Based On A News18 Report