India doesn't wait around when its trade interests are on the line. This week in New Delhi, the government pulled off a double-header of diplomacy that most people didn't see coming. On one hand, you’ve got a "thaw" with Turkiye after years of frosty relations. On the other, a delicate dance with a brand-new government in Bangladesh. It’s a bold move to keep regional trade moving while the rest of the world is busy arguing over tariffs.
If you’ve been following the news, you know that relations between New Delhi and Ankara haven't been great lately. Actually, they’ve been pretty bad. But the 12th round of Foreign Office Consultations just wrapped up, and it’s clear that both sides are tired of losing money.
The pragmatic pivot with Turkiye
Let’s be real about the India-Turkiye dynamic. For a long time, politics got in the way of the bottom line. After the tensions of "Operation Sindoor" and Ankara’s vocal support for Pakistan, trade took a massive hit. In 2025 alone, bilateral trade dropped by about 16%, sliding from over $10 billion to a measly $8.7 billion. That’s a lot of lost revenue in sectors like steel, textiles, and smartphones.
But this week’s meeting between Secretary (West) Sibi George and Turkish Deputy Minister Berris Ekinci signaled a shift. They aren't just talking about old grievances anymore. They’re talking about:
- Energy and Tech: Both nations need to diversify where they get their power and how they build their digital infrastructure.
- Tourism Recovery: Indian tourism to Turkiye plummeted by 36% in mid-2025. Restoring those numbers is a top priority for Ankara.
- Investment Flows: There’s a push to get Turkish contractors into Indian infrastructure projects and Indian IT firms into the Turkish market.
It's a classic case of pragmatism winning over ideology. You don't have to agree on everything to sell each other goods.
Navigating the new Bangladesh First policy
While the talks with Turkiye were about fixing a broken relationship, the meeting with Bangladesh was about building a new one from scratch. External Affairs Minister S. Jaishankar hosted Bangladesh’s Foreign Minister Khalilur Rahman, the first high-level visit since the massive political upheaval in Dhaka back in August 2024.
The vibe is different now. The new administration in Dhaka is operating under a "Bangladesh First" mantra. They’re asking for tough things—like the extradition of former leaders—but they’re also making it clear that they won't let those issues hold the economy hostage.
India is playing it smart. Instead of getting bogged down in the political drama, New Delhi is focusing on "energy diplomacy." Just last month, India sent 5,000 metric tonnes of diesel to Dhaka. During this week’s talks, Bangladesh asked for even more fuel and fertilizers. India's answer? A ready "yes."
The CEPA factor
The real prize here is the Comprehensive Economic Partnership Agreement (CEPA). Bangladesh is set to graduate from "Least Developed Country" status soon, which means it’ll lose its duty-free access to many markets. A trade deal with India isn't just a nice-to-have; it’s a survival strategy for their textile industry.
What this means for the region
India is currently on a trade deal marathon. It just signed the "mother of all deals" with the EU in January 2026 and is pushing hard for agreements with the UK and Canada. By smoothing things over with Turkiye and Bangladesh, New Delhi is securing its flanks.
You’re seeing a shift from "neighborhood first" to "economy first." If a country has a market of 100 million people or sits on a strategic trade route, India is going to talk to them, regardless of what happened last year.
Immediate takeaways for businesses
If you're an exporter or an investor, don't sleep on these developments. The "thaw" with Turkiye means we’re likely to see a relaxation of informal trade barriers and a return of Turkish construction giants to the Indian market.
For those looking at Bangladesh, the message is clear: the new government is open for business, provided you respect their "Bangladesh First" stance. Expect more follow-up meetings in the coming months to iron out the specifics of the CEPA.
Keep an eye on the visa situation. India has hinted that the slow processing of visas for Bangladeshi nationals will be addressed soon. That's usually the first sign that the gears of trade are starting to turn again. Secure your supply chains now before the rush starts.
