The Hindu Business reported that India and Turkey are holding talks to expedite the proposal to ink a Free Trade Agreement and enhance the bilateral trade from the current way below potential level of USD 3 billion to at least USD 5 billion in the short term.
Both countries are also considering their industry demands to open Indian bank branches in Turkey and vice versa. Besides, they are looking at increasing the frequency of flights and number of destinations to facilitate closer interaction of Turkish and Indian traders as well as tourists.
Significantly, New Delhi also urged Turkish companies to invest in infrastructure projects in India.
Mr Anand Sharma commerce and industry minister of India said while addressing the Turkish and Indian Cooperation Meeting organized by FICCI and the Turkish Union of Chambers and Commodity Exchanges.
He said that “The Indian Government has set aside USD billion for infrastructure. India can absorb foreign direct investment of another USD 500 billion in infrastructure.”
Mr Sharma said that “The quantum of economic engagement is not reflective of the potential, especially since both the countries have shown remarkable growth and are continuing to grow even during times of global financial crisis.”
His counterpart from Turkey, Mr Mehmet Aydin said that besides the FTA, frequent political engagement and cultural exchange are a must for developing closer ties.
Apart from infrastructure, banking and aviation, the other sectors chosen for exploring further opportunities are tourism, construction and real estate, telecom, IT, hydrocarbon, electronics, food processing, textiles, pharmaceuticals, mining, marbles, gems and jewellery as well as entertainment. Of the total trade of USD 3 billion in 2008, Indian exports to Turkey were worth USD 2.46 billion. These include yarn, chemicals, granite, steel, carpets, sesame, antibiotics, mobile handsets and TVs.
Mr Rajan Mittal senior VP of FICCI said that it was important for Indian banks to open more branches and representative offices in Turkey and vice versa to help the industry especially SMEs enhance trade.
Mr Mittal said that there was a lot of scope for cooperation in third party logistics including warehousing, cold chain and distribution centers.
Source : thehindubusinessline.com