During negotiations on the trade agreement to be signed between India and Turkey, the Turkish government considered a specific minimum quota of 11,000 tonnes of jute products in view of Turkey`s growing agricultural production. Given the current favourable situation of the supply of jute products, exports of jute products are now freely allowed. The Turkish government, like any other government, is free to procure the quantities of jute it needs. The Indian government is confident that the Turkish government will have no difficulty in meeting its needs. In today`s world, countries tend to conclude bilateral and regional free trade agreements because the World Trade Organization (WTO) has achieved a high degree of liberalization, WTO rules are not sufficient under current conditions, and the multilateral trading system is ineffective in ensuring better market access. As a result of this trend, about 400 free trade agreements have been notified to the WTO. Article 16 of Decision No 1/95 of the Turkey-EC Association Council on the implementation of the final phase of the Customs Union provides, inter alia, for Turkey to take the necessary measures and negotiate mutually beneficial agreements with the countries concerned. Turkey negotiates and concludes free trade agreements with third countries in line with the global trend towards the negotiation of free trade agreements and its commitment to the customs union alongside the EU. Together with the EU`s Common Customs Tariff, preferential trade regimes are the most important element of trade policy towards third countries. Economic and trade cooperation between India and Turkey is an important dimension of bilateral relations. The bilateral trade agreement between India and Turkey was signed in 1973. Institutional arrangements within the meaning of the Joint Committee for Economic and Technical Cooperation (JCETC) signed in 1983 and a Joint Business Council (JBC) between the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Council on Foreign Economic Relations of Turkey (DEIK) were established in 1996.

On 6 April 2015, the Confederation of Indian Industry (CII) signed a Memorandum of Understanding with the Union of Chambers and Commodity Exchanges of Turkey (TOBB) to promote bilateral trade and economic cooperation. CII also signed a Memorandum of Understanding with DEIK in March 2018. In addition, a cooperation agreement was signed between FICCI and TOBB to establish an Indo-Turkish working committee and investment forums. On 6 August 2015, the State Bank of India and the Turkish Akbank concluded a cooperation agreement to support bilateral trade and investment. A Business Forum in India (IBF) was launched in December 2018 by the Ambassador in Istanbul, which holds quarterly meetings. India`s economic engagement in Turkey has received new momentum in recent years. Bilateral trade between India and Turkey increased significantly over the previous decade and a half, reaching $7.84 billion in 2018-2019 and $7.086 billion in 2019-2020. Trade between the two countries amounted to $5.42 billion in 2020-2021 despite the pandemic.

Bilateral trade relations have entered their new phase and the two sides stressed the importance of developing bilateral cooperation programmes with the aim of improving their trade relations on a mutually beneficial and sustainable basis. However, as the second most populous country in the world, India`s progress in the importance of the global economy and international politics since the 1990s has led Turkey to develop a new strategy for South Asia. Turkey has also begun to prioritize India in South Asian politics while maintaining its traditionally good relations with Pakistan and Bangladesh. In recent years, relations between the two countries have warmed due to common strategic goals, and bilateral cooperation in the fields of education, technology and trade is developing. [13] Turkey recognized India immediately after its declaration of independence on August 15, 1947, and diplomatic relations were established between the two countries. .