India's trade with Turkey and Azerbaijan slumps in May amid diplomatic strain

Mint

14 hours ago

New Delhi: India's goods trade with Turkey and Azerbaijan declined sharply in May as diplomatic tensions likely spilled over into commercial ties following their public support for Pakistan during a four-day conflict with India earlier this year.
India's exports to Turkey more than halved to $351.25 million in May from $741 million in April, while imports dropped to $184.71 million from $451 million, according to data from the Directorate General of Commercial Intelligence and Statistics in the commerce ministry.
Exports to Azerbaijan fell to $6.63 million from $14 million and imports inched up to $300,000 from zero.
There have been growing calls in India to boycott Turkish goods, including products such as apples, and tourism. The Centre has reportedly reassessed its broader trade engagement with both countries in light of the geopolitical alignments.
While the government has not officially linked the trade slump to political developments, the data suggests early signs of economic disengagement from nations perceived as unsupportive of India's strategic interests.
India's key exports to Turkey include auto components, iron and steel, aluminium products, fabrics, engines and electrical machinery. On the import side, Turkey primarily supplies electrical machinery, petroleum products, gold, natural stones such as granite and fresh fruits.
Imports of electrical machinery, petroleum products and gold from Turkey declined sharply in May from April, according to the data, suggesting a notable dip in procurement by government-backed entities, which traditionally account for a significant share of these imports.
India's exports to Azerbaijan cover a broad spectrum, including tobacco, pharmaceutical formulations, Basmati rice, ceramics, granite and natural stones. Imports from Azerbaijan are limited to mainly leather goods and select drug formulations.
India's goods trade surplus with Turkey fell to a near-decade low of $2.7 billion in FY25, continuing a three-year slide that has taken it back to pre-pandemic levels. In May, the surplus fell to $166.54 million from $290 million in April, driven by a sharp decline in exports.
Trade with Azerbaijan has followed a different trajectory. Since FY23, the country has shifted from a trade deficit to a surplus with Azerbaijan, driven by a pullback in crude oil imports. Crude oil once accounted for over 94% of India's imports from Azerbaijan, even exceeding 99% in 2022 and 2024, underscoring a sharp reliance on a single commodity.
A spokesperson of the commerce ministry didn't respond to emailed queries.
Bilateral trade with Turkey and Azerbaijan could take a hit in FY26 as major Indian trade bodies and consumer groups call for a boycott of goods from both nations following their public support for Pakistan. The Confederation of All India Traders, representing over 90 million traders across 40,000 associations, had urged Indian businesses to suspend trade with Turkey.
The backlash also extended to travel, with online platform MakeMyTrip reporting a sharp drop in flight bookings to Turkey and Azerbaijan in May, alongside a huge surge in cancellations.
The All-India Consumer Products Distributors Federation, representing 450,000 FMCG distributors, called for an indefinite and total boycott of Turkish consumer goods, while Indian e-commerce platforms pulled select Turkish brands from their clothing and fashion listings.