Post Operation Sindoor, the Modi government has put all business agreements with Turkish firms under the scanner, and these deals are being reassessed. India-Turkey trade stood at $10.4 billion during FY24.
Turkey, along with China, were among the few nations that openly supported Pakistan during its recent conflict with India, a move that has forced New Delhi to rethink its future engagements with Ankara on various matters, including trade and diplomatic ties. According to a media report, Prime Minister Narendra Modi-led Central government is re-assessing deals signed with Turkish companies in sectors ranging from automobile to IT, metro rail to tunnels.
Deals signed with Turkish firms under scanner
As per a report by News18, post Operation Sindoor, the Modi government has put all business agreements with Turkish firms under the scanner, and these deals are being reassessed, which may lead to many of them being terminated.
“All projects involving Turkish firms are under scrutiny, government is re-assessing all ties including the ones which ended,” the report quoted an official as saying, wishing to be anonymous. The official revealed that the government is currently collecting and compiling data deeds related to each engagement across the public and private sector projects, the report said.
According to the report, Turkish companies are running projects across various sectors in at least five Indian states — Uttar Pradesh, Jammu and Kashmir, Gujarat, Maharashtra, and Delhi. Additionally, India has signed MoUs with Turkish firms across sectors ranging from IT to automobile, and construction metro rail networks to tunnels.
A Turkish company bagged the contract for the electromechanical part for Atal tunnel in J&K in 2020, while in 2024, another firm inked an MoU with RVNL for the metro rail project.
India-Turkey trade ties
Over the last decade, India and Turkey have signed several MoUs ranging from telecommunication, culture, education, media, and diplomacy, which Ankara has invested in key sectors including construction, manufacturing, aviation, and metro rail infrastructure.
According to a February 2025 report by the India Brand Equity Foundation (IBEF)– a trust established by the Union Commerce Ministry’s Department of Commerce– Turkey occupies the 45th position in FDI equity inflows into India with a cumulative FDI number of US$ 240.18 million from April 2000-September 2024, the report stated.
Bilateral trade between India and Turkey stood at $ 10.4 billion during FY24.
New Delhi’s changing stance on Ankara post Op Sindoor
However, Turkey’s recent stance with regards to Pakistan and its repeated support on Kashmir issue for Islamabad at global forums, has forced New Delhi to recalibrate its its economic and diplomatic ties with Ankara. After Operation Sindoor, the Narendra Modi government is now decisively shifting its economic policy with Ankara, and all business deals with Turkish firms are being scrutinised.
“All agreements are being scrutinised. But some MoUs or trade deals or project tie ups were done on a long-term basis. They might not be affected following the current geo-political situation. However, the emerging circumstances and Turkey’s continuous interference over the Kashmir issue may adversely affect the growth of investments or any future trade deals,” the News18 report quoted a senior trade expert, working with the Commerce Ministry, as saying.
