From Kashmir To Delhi, Tunnels To Metros: India To Re-Assess Billion-Dollar Turkish Deals
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Turkey's repeated remarks on Kashmir at international forums and its growing alignment with Pakistan have not gone unnoticed in New Delhi.
From automobile to IT, metro rail to tunnel – with Turkish firms and companies operating across at least five states – Gujarat, Maharashtra, Uttar Pradesh, Jammu & Kashmir, and Delhi, along with several MoUs signed across sectors – the bilateral trade between the two nations stood at US$ 10.4 billion during FY24.
'Turkey occupies the 45th position in FDI equity inflows into India with a cumulative FDI number of US$ 240.18 million from April 2000-September 2024," reveals a review report, dated February, 2025 by India Brand Equity Foundation (IBEF), a trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India.
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.
But behind the scenes, a quiet yet deliberate shift is underway after Operation Sindoor. The Modi government is now working systematically to reassess and scrutinise — and in some cases, terminate — Turkish business agreements and projects in India.
A senior official, speaking on condition of anonymity, confirmed that 'all projects involving Turkish firms are under scrutiny, government is re-assessing all ties including the ones which ended," adding that the government is currently focused on collecting, compiling detailed data and deeds related to each engagement across the public and private sector projects. In 2020, a Turkish company was assigned the electromechanical part for Atal tunnel in J&K and in 2024, RVNL signed a MoU with another Turkish company for the metro rail project.
Turkey's repeated remarks on Kashmir at international forums and its growing alignment with Pakistan have not gone unnoticed in New Delhi. But, the Modi government, typically cautious about open retaliatory moves, earlier appeared to be recalibrating its economic and strategic exposure to Ankara through what insiders describe as a 'silent unwind' of bilateral business ties. However, post Operation Sindoor, and what followed next, the government has now decided to bring a shift in its bilateral policy with the country.
Talking to News 18, a senior trade expert, working with the ministry said, 'All agreements are being scrutinised. But some MoUs or trade deals or project tie ups were done on a long-term basis. They might not be affected following the current geo-political situation. However, the emerging circumstances and Turkey's continuous interference over the Kashmir issue may adversely affect the growth of investments or any future trade deals."
Among the key Turkish players in India, there are construction companies involved in metro rail projects in cities like Lucknow, Pune, and Mumbai. A firm, through its joint venture with an Indian industry, has established a manufacturing unit in Gujarat, while another aviation company, seen as a prominent Turkish entity, operates in Indian airports. These are not small footprints – they represent critical infrastructure and public-facing services, said the senior official.
Significantly, the 2017 visit of Turkish president Erdoğan to India had led to a flurry of cooperation agreements, including media collaboration, and training partnerships between diplomatic academies. But nearly eight years on, those promises of synergy are now giving way to a sterner reality – economic distancing born out of geopolitical divergence.
For now, the Modi government has chosen a low-decibel approach. As of now, no official cancellation has been announced, but the intent is unmistakable. As India asserts itself globally, partnerships that do not align with its core strategic interests despite being economically viable may face a quiet exit.
First Published:
May 15, 2025, 08:36 IST
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