India’s $12 Billion Trade with Turkiye and Azerbaijan Amidst Tensions with Pakistan

India’s $12 Billion Trade with Turkiye and Azerbaijan Amidst Tensions with Pakistan

The ongoing tensions between India and Pakistan are beginning to influence the travel dynamics between India and two significant trading partners, Turkiye and Azerbaijan. Both countries, which have expressed support for Pakistan amid the border tensions, are not just crucial tourist destinations but also key players in India’s $12 billion trade relationships.

According to data from the Ministry of External Affairs (MEA), India was the third-largest destination for Azerbaijan’s crude oil in 2023, accounting for 7.6% of the total crude oil exports worth $1.227 billion. India’s bilateral trade with Azerbaijan has grown substantially, increasing from approximately $50 million in 2005 to $1.435 billion in 2023. This growth has positioned India as Azerbaijan’s seventh-largest trading partner. In 2023, India’s imports from Azerbaijan totaled $1.235 billion, while exports were valued at $201 million.

Similarly, India’s economic engagement with Turkiye has gained momentum in recent years. The bilateral trade between the two countries crossed $13.8 billion in 2022-23, with India’s trade in FY2023-24 standing at $10.43 billion. India exported $6.65 billion worth of goods to Turkiye, while imports were valued at $3.78 billion. Foreign direct investment (FDI) from Turkiye to India reached $227.5 million, while Indian investments in Turkiye totaled around $200 million.

Tourism between India and these countries has also seen significant growth. Azerbaijan, for example, received 117,302 Indian tourists in 2023, nearly double the number from the previous year (60,731). In 2024, the number of Indian visitors to Azerbaijan is expected to rise to 243,000. A direct flight service between Delhi and Baku, operated by both Indigo and Azerbaijan Airlines, connects the two nations, with ten flights a week. India is now the fourth-largest source of tourists for Azerbaijan, after Russia, Turkiye, and Iran.

In Turkiye, the number of Indian tourists has jumped by 20%, with 3.3 lakh Indians visiting in 2023, compared to 2.74 lakh the previous year. However, in light of the ongoing tensions, some tourism platforms have begun advising Indian nationals to reconsider unnecessary travel to both Turkiye and Azerbaijan. Several have also ceased accepting bookings from Indian tourists.

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