Abdulkadir AKSÖZIn recent years, India has become a significant player in the global economy through its economic reforms and initiatives. Tax reforms, digitalization efforts, and improvements in the logistics sector have accelerated the country’s economic development. This major transformation allows India to play a key role in global supply chains and investment flows. From Türkiye’s perspective, India’s rising economic profile holds great potential for strategic partnerships and trade opportunities.
According to most economic projections, India’s share in the world economy is expected to increase from 7% to 13% by 2035. In such a scenario, it is likely that India will become a global economic power comparable to the United States. This growth, supported by technological advancements, paves the way for India to have a greater voice in the global economic arena in the near future. Therefore, Türkiye can contribute to its growth by strengthening economic relations with India during this process.
Since Narendra Modi assumed office as Prime Minister in 2014, substantial reforms in India’s economic policies have positively influenced the nation’s growth trajectory. The Modi government undertook a series of reforms and initiatives to revive the economy and transform India into a global economic power. Structural reforms, steps towards digitalization, and infrastructure investments were at the forefront of the policies implemented during this period. Significant progress has been made, especially in promoting the digital economy, increasing financial inclusion, and enhancing the country’s industrial capacity. Additionally, various incentives and facilities were provided to attract international investors. Consequently, India recorded a GDP growth of over 7% in 2023, and it is expected to grow by an annual average of 6% to 8% over the next twenty years. The latest IMF report forecasts a 7.3% growth for India in 2024, making it the fastest-growing country in the world.
It is a fact that India’s young and dynamic population is one of the key elements of its economic growth. A large part of the country is of working age, ensuring a high labor supply. Investments in education and healthcare increase the quality of the workforce and boost productivity. Investments in STEM (Science, Technology, Engineering, and Mathematics) fields enhance India’s competitiveness in the global technology and engineering markets every day.
On the other hand, technological advancements and digitalization also play an important role in India’s economic growth. India, which has become one of the world leaders in software and information technologies, is establishing technology hubs, especially with cities like Bengaluru and Hyderabad. Digitalization positively affects many sectors such as agriculture, healthcare, education, and finance. In this context, the “Digital India” program initiated by the Indian government strengthened the country’s digital infrastructure and fostered the growth of the digital economy.
India’s economic growth is also strongly supported by infrastructure projects and industrial policies. Investments in highways, ports, and airports across the country reduce logistics costs and increase trade volume. Initiatives like “Make in India” promote domestic production and contribute to the growth of the industrial sector. As a result, all these initiatives attract foreign investments and strengthen India’s position in the global supply chain.
In such an environment, India appears to have great potential for economic cooperation with Türkiye. The trade volume between Ankara and New Delhi has shown significant increases in recent years, especially in sectors such as textiles, automotive, chemicals, and food. As of 2023, the trade volume between the two countries reached approximately 10 billion dollars. In the near future, Türkiye should position itself as an important trade partner for India.
Indian companies have a strong presence in Türkiye’s strategic sectors such as automotive, pharmaceuticals, and information technologies, while Turkish firms are undertaking significant projects in India’s infrastructure and engineering fields. Türkiye serves as a strategic base for Indian companies to do business with Europe, Central Asia, and the Black Sea region and to gain secure access to the Middle East. This makes Türkiye an attractive center for India’s regional trade and investment strategies while also strengthening economic ties between the two countries.
Moreover, India’s remarkable economic rise offers Türkiye an important opportunity to develop relations with one of the world’s fastest-growing markets. Turkish companies can increase their investments in India, particularly in sectors such as construction, medical, tourism, and automotive components. These dynamic partnerships will help both countries achieve their economic growth targets and gain a stronger position in global competition. As India continues to expand its global economic influence, Türkiye can greatly benefit from a deeper economic partnership. Both countries can establish a win-win relationship that promotes growth and innovation by leveraging their mutual strengths.
The recent meeting between Turkish Foreign Minister, Hakan Fidan, and his Indian counterpart, Subrahmanyam Jaishankar, on the sidelines of the Turkey-ASEAN Sectoral Dialogue Partnership Meeting on July 27, holds significant importance. This engagement underscores the critical role India can play in diversifying Türkiye’s economic trajectory and portfolio. Achieving this goal necessitates the active and strategic utilization of diplomatic channels.
In conclusion, establishing a strong framework for commercial relations will support the economic growth of both countries and enable them to capitalize on the advantages offered by partnerships. Comprehensive trade agreements and enhanced diplomatic dialogue will be key elements of this process. This approach will further deepen the relations between Türkiye and India and lay the foundation for a long-term sustainable partnership.
Abdulkadir Aksöz
