India can consider Türkiye as Gateway to USD 27 trillion Market
“Türkiye and India are both strong economies with significant potential for enhanced bilateral cooperation. There are ample opportunities for both nations to further strengthen trade relations,” said Mr. Mustafa Kemalettin Eruygur, Consul General, Consulate General of the Republic of Türkiye, at an interactive meeting with a high-level Türkiye business delegation. The event was organized by All India Association of Industries (AIAI) and WTC Mumbai. The meeting was followed by the signing of a Memorandum of Understanding (MoU) between WTC Mumbai and DEIK-Türkiye-India Business Council, aimed at fostering deeper trade and investment relations between the two countries.
Speaking on bilateral trade relations, Mr. Eruygur noted, “Currently, trade between the two countries stands at approximately USD 8.5 billion, with India’s exports to Türkiye accounting for around USD 7 billion and Türkiye’s exports to India at USD 1.5 billion. Given that Türkiye’s total trade volume is around USD 600 billion and India’s is approximately USD 800 billion, there is substantial untapped potential to expand bilateral trade. Türkiye’s imports from India primarily consist of raw and intermediate materials for industrial production, including petroleum-based oils, automotive spare parts, and processed aluminum. Meanwhile, Türkiye’s exports to India mainly comprise raw materials and semi-finished products such as marble, minerals, fruits, and dry fruits.”
Highlighting Türkiye’s potential as an investment destination, Mr. Eruygur stated, “Türkiye ranks as the 11th largest economy globally in terms of GDP based on purchasing power parity (PPP) and is projected to grow by 3.2% according to OECD estimates, which is double the OECD average. Its strategic geographical location offers a unique advantage, providing access to 56 countries within a radius of four-hour flight travel from Istanbul, representing a combined GDP of USD 27 trillion.”
Discussing investment opportunities, he remarked, “Türkiye presents significant investment potential, particularly in the industrial and manufacturing sectors. Key priority areas include e-mobility, life sciences, storage chemicals, ICT, machinery, advanced manufacturing, aerospace, and the agro-industry. Given India’s expertise in life sciences and chemicals, these sectors could serve as initial areas of collaboration, followed by expansion into other industries. Türkiye investments in India currently stand at USD 100 million across various industries, including machinery and automotive spare parts, with a recent investment in Pune. Meanwhile, Indian investments in Türkiye amount to USD 126 million across multiple sectors.”
Expressing optimism about the future of India-Türkiye economic relations, Mr. Eruygur emphasized that such bilateral exchanges play a crucial role in strengthening trade and investment ties between the two nations.
Dr. Vijay Kalantri, President – All India Association of Industries and Chairman – MVIRDC WTC Mumbai highlighted the immense untapped trade and investment potential between India and Türkiye. He stated, “India and Türkiye are among the world’s most ancient civilizations, sharing deep cultural and socio-economic ties. Both nations have many complementarities, and deeper cooperation can lead to mutually beneficial outcomes. While both countries have signed several agreements in the past, including trade agreements, avoidance of double taxation, and investment promotion and protection agreements, there is still no comprehensive agreement fostering deeper business ties. Currently, Türkiye is India’s 28th largest trading partner, while India ranks 18th for Türkiye. Both nations should strive to become one of the top ten trading partners. In FY 2024, total trade between the two countries stood at USD 10.4 billion, but there is potential to double this figure to USD 20 billion within the next five years. Achieving this goal requires a focused approach, prioritizing key sectors such as textiles, pharmaceuticals, automobiles, agriculture & food processing, and metals—each offering immense potential. Both nations should also strongly consider a Free Trade Agreement, as it would provide a significant boost to trade and business. Trade support organizations like ours are ready to extend all necessary assistance in this regard.”
Underscoring the importance of the MoU in facilitating bilateral trade and investment, he added, “Türkiye has the potential to become a key investment partner for India. Currently, bilateral investment stands at just USD 336 million—far below its actual potential. Türkiye can serve as a crucial gateway for Indian businesses looking to expand into the European market, in addition to its vibrant tourism sector. Likewise, for Türkish companies, India offers exciting opportunities in IT, medical tourism, green energy, and sustainable manufacturing. We are already witnessing progress, with a recent investment by a Türkiye firm in Maharashtra’s welding industry. This MoU will play a crucial role in facilitating further bilateral investments by enhancing B2B engagement. There is also a need to increase the exchange of trade delegations, as direct communication fosters better business collaborations. We would be happy to lead more trade delegations to Türkiye in the coming years.”
Speaking on the occasion, Ms. Hülya Gedik, Chairperson of DEIK-Türkiye-India Business Council, described India as a rising global superpower with immense economic potential. She remarked, “India has been one of the fastest growing major developing economies over the past decade, offering unique opportunities and challenges for countries worldwide. For Türkiye, India is a crucial partner in terms of trade, business, and investment. We are here with a large trade delegation representing diverse industries, including manufacturing, recycling, healthcare, and wellness.”
Highlighting the untapped business potential between the two nations, she added, “Currently, there is a gap between potential trade and actual trade, as reflected in the trade imbalance favoring India. Türkish companies are not fully utilizing the vast opportunities available in the Indian market. Türkiye has a wide range of high-quality products to offer India, along with advanced technology. Both nations can benefit greatly by leveraging each other’s strengths in different industries. I am confident that the signed MoU will facilitate greater business interactions, leading to increased bilateral trade and investment.”
Ms. Gedik invited the Indian business community to explore investment opportunities in Türkiye, emphasizing its strategic location at the crossroads of Europe and Asia. She noted that Türkiye could serve as a launchpad for Indian businesses looking to expand into the European and Eurasian markets.
Mr. Hidayet Onur Ozden, Vice Chairman of DEIK-Türkiye-India Business Council and Chairman of GCC Recycling and Refining, stressed the need to strengthen people-to-people connections to enhance bilateral cooperation. He stated, “India and Türkiye are two great nations with a shared history, rich cultural ties, and emerging economic power. However, in my experience, there are many misunderstandings between the two countries that must be addressed as a priority. It is crucial for both nations to improve communication at all levels—from government and business to interpersonal interactions. The focus should be on understanding differences before identifying similarities.”
The meeting was attended by distinguished business and industry leaders along with the WTC Mumbai Council of Management.
(L-R) Mr. Mustafa Furkan Albayrak, Commercial Attaché, Turkish Consulate General in Mumbai, Ms. Aakruti Bagwe, Director-Operations, WTC Mumbai, Dr. Vijay Kalantri, President – All India Association of Industries (AIAI) and Chairman – WTC Mumbai, Ms. Hülya Gedik, Chairperson, DEIK- Türkiye-India Business Council, Mr. Mustafa Kemalettin Eruygur, Consul General, Consulate General of the Republic of Turkey and Mr. Hidayet Onur Ozden, Vice Chairman, DEIK- Türkiye-India Business Council and Chairman, GCC Recycling and Refining