New Delhi: Exports of commodities such as cotton, man-made yarn and textile dyes from India may be hit in the short term in earthquake-hit Turkey, exporters say. In addition to the two powerful earthquakes on Monday last week that caused widespread destruction of property and killed more than 28,000 people, leaving millions homeless in Turkey.
The earthquake also damaged infrastructure and logistics networks, with the port of Iskenderun closed for nearly a week. Exports to Turkey to increase to USD 6.2 billion during April-November 2022 as against USD 5.1 billion in the same period in 2021.
Federation of Indian Export Organizations (FIEO) Director General Ajay Sahay said the damage caused in Turkey is yet to be ascertained and hence its impact on exports is difficult to ascertain. However, the quake will further depreciate the Turkish lira, which has depreciated significantly recently, and touched its record low following the quake, making imports costlier and affecting demand, he said.
“Since the textile manufacturing centers of Gaziantep and Kahanmaras provinces have been hit the most, our exports of cotton and man-made yarns and textile dyes may be affected in the short term,” Sahay said. Gaziantep is a province in south-central Turkey. It is a major manufacturing center of that country. sharing the same idea, hand tools
Association President SC Ralhan said that India’s exports to Turkey are increasing. Ralhan said, “There earthquake may affect business only in short term but not in long term. There is no news of any issue so far from exporters of MSME segment while exporting to Turkey.”
In 2021-22, India’s exports to Turkey are estimated to be around USD 9 billion, while imports in the same fiscal year stand at USD 2 billion. Major Indian exports to Turkey include mineral oils and fuels, man-made fibers and staple fibers, automotive spare parts and accessories, organic chemicals. Turkey’s export of broken/unbroken poppy seeds to India; Machinery and mechanical equipment, articles of iron and steel, inorganic chemicals, pearls and precious/semi-precious stones and metals (including imitation jewellery), and marble.
The Indian community in Turkey is small, mostly working in business establishments and universities in Istanbul and Ankara. Some professionals also work on some projects there. State Bank of India has a representative office in Istanbul. Turkish Airlines (in a code sharing arrangement with Air India) operates daily flights from Istanbul to Mumbai and Delhi.