Prime Minister Narendra Modi on Monday (May 01) invited Turkish businesses to invest in sectors such as energy, rail, road, ports and housing, saying India was never a better investment destination than it is now.
Addressing business leaders present at the India-Turkey Business Summit, which was also attended by visiting Turkish President Recep Tayyip Erdogan, the Prime Minister stressed the need for a substantial increase in the economic engagement between the two countries.
Modi welcomed Erdogan, who is accompanied by senior cabinet ministers and a 150-member business delegation to take part in the India-Turkey Business Summit.
"India and Turkey enjoy good economic ties... While this (trade growth) is encouraging, the level of present economic and commercial relation is not enough against the real potential," Modi said.
The Prime Minister said although the bilateral trade between India and Turkey has gone up to $6.4 billion in 2016 from $2.8 billion in 2008, it is still far behind the real potential.
Promising a business friendly environment, Modi said the Turkish construction companies can participate in India's infrastructure sector development, especially in sectors such as ports, rail, housing, energy, hydrocarbon, tourism, textiles and auto.
Modi also highlighted India's low-cost manufacturing capabilities before the Turkish businessmen while seeking investment.
Stating how India has never been more promising destination for investment than it is today, the Prime Minister laid focus on another important sector, energy, which both the nations are aggressively expanding.
"India and Turkey are both energy deficient, and our energy needs are ever increasing. This sector is an important pillar of bilateral relations. Hydrocarbons and renewable are common areas of interest for both the countries," the Prime Minister said.
Speaking on the occasion, Turkish President Erdogan also made a strong case for deepening and strengthening bilateral ties to achieve the actual trade potential between the two nations.
He also suggested that India and Turkey should initiate free-trade agreement talks and look for possibility of bilateral trade in domestic currencies to tide over the issue of exchange rate fluctuation.
"We should increase our business and economic relationship...if we can also start the comprehensive economic relations negotiation that would be great...It would be also good to start free-trade agreement talks. This would also add further momentum to our relations," he said.
Erdogan, however, underlined the need for balancing the trade saying it was highly in favour of India.
He said: "The bilateral trade at the moment is not balanced in favour of Turkey. We export $652 million and import $5,757 million which is not sustainable. The trade volumes need to increase, especially India's investment in Turkey which stands at $ 110 million".
Earlier, External Affairs Minister Sushma Swaraj called on the visiting President.
"Important engagement for the State guest. External Affairs Minister @SushmaSwaraj calls on President Erdogan, welcomes him before delegation level talks," MEA Spokesperson Gopal Baglay said.
This is Erdogan's first foreign tour after winning a controversial referendum on April 16 that further consolidated his executive powers.
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PTI also contributed to this story)
BW Reporters
Naina Sood is a Economics graduate and has done her post graduation in International economics and Trade. She has deep interests in Indian economy and reforms
