India’s Boycott Costs Turkey Over $315 Million: A Trade Fallout Analysis

Boycott Costs Turkey – India’s boycott of Turkish goods and services has sent shockwaves through Turkey’s economy, with estimated losses exceeding $315 million. The move, driven by diplomatic tensions over Turkey’s pro-Pakistan stance, has impacted key sectors such as apparel, food products, tourism, and aviation. As Indian businesses and consumers continue to distance themselves from Turkish imports, the economic ramifications for Ankara are becoming increasingly severe.

The Origins of the Boycott

The boycott stems from Turkey’s vocal support for Pakistan, particularly following recent cross-border hostilities between India and Pakistan. Turkish President Recep Tayyip Erdogan’s statements condemning India’s counter-terror operations led to widespread resentment among Indian businesses and consumers. In response, major Indian trade bodies and retailers initiated an unofficial but widespread boycott of Turkish-origin products.

On May 20, 2025, the All India Consumer Products Distributors Federation (AICPDF) announced an indefinite and total boycott of Turkish goods, affecting 13 million grocery outlets across India. This decision has significantly disrupted Turkey’s exports to India, which were valued at $2.7 billion last year.

Economic Impact: Sector-Wise Breakdown

The boycott has affected multiple sectors, leading to substantial financial losses for Turkish businesses.

1. Retail & Consumer Goods

Indian retailers have stopped selling Turkish-origin products, impacting $234 million worth of imports. Major online platforms like Myntra and AJIO have delisted Turkish brands such as Trendyol, LC Waikiki, and Mavi, citing national sentiment as a key factor.

2. Tourism

Indian travel bookings to Turkey have dropped by 60%, with cancellations surging by 250%. Flipkart has suspended bookings for flights, hotels, and travel packages to Turkey, further denting the country’s tourism revenue.

3. Infrastructure & Aviation

India has scrapped a $2.3 billion shipbuilding deal with Turkish contractors and revoked security clearance for Turkish aviation services company Celebi. Additionally, Air India is lobbying to block a proposed aircraft leasing partnership between IndiGo and Turkish Airlines, citing business and national security concerns.

4. Agricultural Imports

Himachal Pradesh traders have halted Turkish apple imports, which were valued at ₹1,000 crore ($60 million) in 2024. Indian fruit markets are now sourcing apples from Iran and domestic suppliers.

5. Marble & Textile Industry

125 marble associations across Udaipur have boycotted Turkish marbles, which account for 70% of India’s total marble imports, worth ₹2,500 crore ($300 million). Cotton traders have also suspended imports of Turkish wool and silk carpets, leading to price hikes in existing stocks.

Turkey’s Economic Struggles Worsen

Turkey’s economy was already facing high inflation and a depreciating currency, and India’s boycott has exacerbated the crisis. The country’s GDP growth rate, which slowed to 3.0% in 2024, is now projected to decline further. Inflation remains a major concern, with rates hovering around 33%, making it one of the highest globally.

Foreign Direct Investment (FDI) in Turkey has also suffered, dropping from $13.67 billion in 2022 to $10.64 billion in 2023, with 2025 projections indicating further decline. The trade deficit, estimated at $20 billion, continues to widen as Turkey struggles to find alternative markets.

Conclusion – Boycott Costs Turkey

India’s boycott of Turkish goods and services has dealt a severe economic blow to Turkey, with losses exceeding $315 million. As diplomatic tensions persist, Turkey faces long-term repercussions, including reduced exports, declining tourism revenue, and weakened trade relations. While Ankara may seek alternative markets, the impact of losing one of the world’s largest consumer bases will be difficult to offset

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