The Indian government is awaiting a formal nod from the Ministry of Finance on proposal from Turkey that bilateral trade between the two countries be denominated in local currencies and be part of the free trade agreement (FTA) under negotiations, a government official said here on Wednesday, December 19.
He said that trade ministers of the two countries which met in New Delhi recently agreed to early setting up of a joint study group on the proposed India-Turkey FTA and ensure elimination of customs duty on maximum number of goods traded between two countries.
Turkey submitted a proposal to the Indian government that apart from elimination of customs duty on maximum number of goods trades, the FTA should also incorporate provisions for trade in local currencies of the respective countries as this would give additional boost of exports and imports from the two countries, the official added.
India and Turkey’s bilateral trade in 2017-18 was pegged at $7.2 billion.