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-covid levels, commerce ministry data showed.
The data reflects a steady decline in both exports and imports since FY23, reversing the sharp post-pandemic surge seen in FY22. The downturn may continue in FY26 with softening of trade ties between the two nations amid growing calls for disengagement with Turkey following tensions between India and Pakistan.
Exports to Turkey dropped 14% in FY25 to $5.72 billion, while imports fell 21% to around $3 billion, reducing the trade surplus to $2.7 billion. India ran an overall merchandise trade deficit of $282.83 billion in FY25.
The value of goods surplus with Turkey stood at $3.42 billion in FY17 and saw modest fluctuations until a sharp spike in FY22 to $6.72 billion.
It has since declined, falling to $5.4 billion in FY23, $2.86 billion in FY24, and $2.7 billion in FY25.
India’s primary exports to Turkey include value-added petroleum products, yarn and fabric, auto components, electrical machinery, and internal combustion engine parts. Key imports include crude oil, gold, granite, and iron and steel.
The fall in India’s exports to Turkey is largely due to steep declines in a handful of high-value goods, experts said.
“India’s trade with Turkey has taken a sharp turn in recent years, with exports falling dramatically after a strong surge between 2020 and 2022. These setbacks underscore India’s reliance on a narrow set of exports to Turkey and reveal how vulnerable trade flows are to shifts in demand, pricing, or regulatory policies,” said Ajay Srivastava, former trade service official and founder of the economic think tank Global Trade Research Initiative.