India's exports to Turkey fall over 50% as ties strain
What's the story
India's trade with Turkey and Azerbaijan has witnessed a sharp decline in May. The fall is likely influenced by recent diplomatic tensions between India and these countries. The data from the Directorate General of Commercial Intelligence and Statistics shows that India's exports to Turkey fell by over 50% in May, from $741 million in April to $351 million. Imports also dropped significantly during this period, declining to $184.71 million from $451 million.
Trade impact
Exports to Azerbaijan fell from $14 million to $6.63 million
Along with Turkey, India's trade with Azerbaijan has also been affected. Exports to the country fell from $14 million to $6.63 million in May. Although India has not officially linked the drop to diplomatic rifts, analysts see it as early evidence of an economic cooling between these nations . Earlier in the year, both Turkey and Azerbaijan publicly sided with Pakistan during the India-Pakistan border conflict—a stance that sparked vocal calls for boycotts in India.
Surplus decline
India's trade surplus with Turkey has also declined
India's trade surplus with Turkey has declined to a near-decade low of $2.7 billion in FY25. The surplus fell to $166.54 million in May from $290 million in April, due to a sharp decline in exports. India primarily exported auto components, iron, steel, aluminium, fabric, and machinery to Turkey. Conversely, Turkey supplied electrical goods, petroleum, gold, natural stones, and fruits to India—many of which saw deep lows in May. The drop particularly impacted government-linked imports, suggesting state-backed procurement slowed significantly.