India–Turkey: Textile and Apparel Trade Synergies (2026)

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Policy Update
Madhu Swaraj

Background

 The textile and apparel (T&A) relationship between India and Turkey is rooted in deep historical ties and a shared status as global manufacturing powerhouses. Historically, both nations have acted as pillars of the global textile supply chain — India as a massive producer of raw materials (cotton and synthetic fibers) and Turkey as a high-quality fashion hub and gateway to the European market.

 As of early 2026, the bilateral trade relationship is entering a transformative phase. While both countries are competitors in the global garment market, they have increasingly recognized complementary strengths. India provides the industrial scale and raw material diversity, while Turkey offers strategic proximity to Europe and advanced manufacturing ecosystems. The signing of the India-EU Free Trade Agreement (FTA) in January 2026 has introduced a new variable, as Turkey, linked to the EU via a Customs Union, now finds its trade dynamics with India structurally altered.

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Source: Workers operate sewing machines in a textile manufacturing facility. (Adobe Stock Photo)

Functioning

 The trade synergy functions through a “Raw Material to High-Fashion” pipeline. The operational mechanism is defined by:

  • Supply Chain Integration: India primarily exports intermediate goods such as man-made fibers (MMF), cotton yarn, and synthetic filaments. Turkish manufacturers process these into high-value fabrics and finished garments for the EU and Middle Eastern markets.
  • Logistical Hubs: Turkey serves as a “Near-Shoring” destination for Indian firms. By utilizing Turkish logistics, Indian exporters can reduce lead times to European retail capitals to just a few days, compared to weeks via maritime routes.
  • Regulatory Alignment: Under the EU–Turkey Customs Union, Turkey aligns its tariffs with the EU’s Common External Tariff. Consequently, when the India-EU FTA lowers duties on Indian goods, Turkey is often required to mirror these reductions for Indian exports entering Turkish soil, facilitating a smoother flow of textiles.

Performance

 Bilateral trade between India and Turkey reached approximately $8.71 billion in FY2024-25. While the overall trade volume saw a slight dip from the previous year, the textile sector remained a resilient pillar. 

Key Export-Import Metrics (2024–2025)

 The textile trade between India and Turkey in FY2024-25 was characterized by India’s role as a major upstream supplier and Turkey’s niche high-value exports to the Indian market. India’s textile exports to Turkey were led by Man-Made Yarn, which accounted for approximately $264.77 million, followed by Cotton Yarn and Fabrics at roughly $138.91 million. These raw and semi-processed materials form the backbone of the Turkish garment industry, which processes them for re-export to Europe. In the apparel segment, India has increasingly pivoted toward niche and ethnic wear, capitalizing on growing global interest in traditional craftsmanship.

 Conversely, Turkey’s exports to India are increasingly defined by specialized and high-performance goods. While Turkey exports significantly less raw cotton to India, there has been a notable surge in wool blends and premium fabrics designed for the Indian luxury market. Furthermore, Turkey remains a vital source for specialized machinery and high-quality dyes, reflecting India’s ongoing industrial modernization. In the consumer space, Turkish high-end luxury and designer wear are carving out a significant footprint in India’s metropolitan retail hubs, catering to a growing demographic of brand-conscious consumers seeking European-style aesthetics with Mediterranean craftsmanship.

Turkey currently holds an 8% share of the textile import market, with India being its second-largest supplier of raw materials after China. Conversely, Indian imports of Turkish high-end fabrics and textile machinery have seen a 12% uptick as Indian manufacturers modernize their facilities.

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Source: A textile factory operates rows of automated knitting machines in Türkiye. (Adobe Stock Photo)

Impact

The synergy between these two nations has profound socio-economic impacts:

  • Market Competitiveness: The collaboration allows both nations to compete more effectively against China. By sourcing cost-effective Indian yarn, Turkish apparel becomes more price-competitive in Europe.
  • Modernization: Turkish investment in India, notably through companies like Soktas (previously) and current machinery providers, has helped Indian mills improve quality standards.
  • Labor Market: In India, the export demand from Turkey supports millions of jobs in the MMF and cotton clusters of Gujarat and Tamil Nadu. In Turkey, the influx of Indian materials sustains the textile manufacturing workforce in hubs like Bursa and Istanbul.

Emerging Issues

Despite the synergies, several challenges have emerged in 2026:

  1. The FTA Reciprocity Gap: Under the 2026 India-EU FTA, Indian goods enter Turkey duty-free (via the Customs Union), but Turkish goods do not automatically gain duty-free access to India because Turkey is not a formal signatory to the India-EU agreement. This creates a trade imbalance that Turkish officials are currently seeking to address through a separate bilateral pact. 
  2. Rules of Origin (RoO): Strict RoO requirements in the new FTA mean that Turkish garments made with Indian fabric must prove significant “value addition” to qualify for zero-duty entry into the EU, complicating the “processing hub” model.
  3. Sustainability Compliance: Both nations are under pressure from the EU’s Carbon Border Adjustment Mechanism (CBAM). India and Turkey must now synchronize their “Green Textile” standards to ensure their combined supply chain remains compliant with European environmental regulations.

Way Forward

To capitalize on the current momentum, the following strategies are recommended:

  • Joint Ventures in Technical Textiles: India’s “Production Linked Incentive” (PLI) scheme and Turkey’s advanced R&D offer a perfect match for producing high-growth technical textiles (meditech, protech).
  • Bilateral Comprehensive Trade Agreement: A dedicated India-Turkey FTA would resolve the current reciprocity issues caused by the India-EU deal, allowing Turkish high-fashion and machinery to enter India more competitively.
  • Digital Integration: Establishing a “Green Corridor” for digital customs documentation and blockchain-based traceability would help both nations meet EU transparency requirements.

 Conclusion: The India-Turkey textile corridor is no longer just a buyer-seller relationship; it is a strategic alliance. By leveraging India’s scale and Turkey’s design and logistical prowess, the two nations can redefine the global apparel landscape.

References

About the Contributor:

Madhu Swaraj is a Research Intern at IMPRI. 

Acknowledgement: The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.

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