At a delegation level talks between two countries, in the presence of the Turkish President, Abdullah Gul and the Indian Prime Minister, Manmohan Singh in Delhi on Tuesday it was decided to set up a joint technical committee to further the prospects of the proposed FTA.

In a joint declaration both sides agreed to set up a joint working group on terrorism and agreed to work together and with other like-minded States for the finalization of the Comprehensive Convention on International Terrorism at the earliest.

Another joint declaration signed was on science and technology cooperation for an advance science and technology dialogue to actively study the possibilities of working together in mutually identified projects in areas such as telecommunications, computerization, non-technology space research, bio-technology and environmental technology and convene a joint workshop in 2010.

Both sides agreed to continue to work together in G-20 and other international fora including the United Nations.

A MoU was signed between the Turkish company, Elektromed and the Indian company Gloabtel Convergence Ltd. Indian apex industry body, FICCI is likely to sign a MoU with the Union of Chambers and Commodity Exchanges of Turkey in Mumbai on Wednesday.

Earlier during the last visit of the Turkish Prime Minister, Recep Tayyip Erdogan to India in November 2008, the Turkish side insisted on starting a negotiation on FTA. The Turkish side became interested in signing a FTA with India soon after India and the European Union began discussions for a FTA. This was conveyed to India during the visit of the then Turkish minister of state, Kursad Tuzmen in March 2008.

On the visit of Erdogan a joint study group (JSG) was set up to study the feasibility of the FTA. This group met in January 6-7, 2010 for the first time and examined possibility of a comprehensive economic partnership agreement (CEPA). The JSG is slated to submit its report by the end of 2010.

The negotiations for a FTA between India and EU has not gathered desired pace due to apprehensions on both side. Turkey, in this situation, wants to take the advantage of striking a FTA with India suggesting Istanbul's connectivity to the European Customs Union and its FTAs with its neighbours.

Addressing a high level business summit organized by the three Addressing a high level business summit organized by the three apex Indian industry bodies, the Turkish President said: “We have no customs barriers with countries like Germany, France, Italy and others. We have FTAs with our neighbours. With Russia we trade in rubble and Turkish currency terms. Indian investors and goods can have a vast market across Europe. With Russia we have set a trade target of US$ 100 billion.”

He urged the industry on both sides to work for cooperation in energy, infrastructure, communication, IT, software, tourism and banking sectors.

“FTA with India can be signed soon if political will is there. Today in my discussions with the Indian Prime Minister I have experienced that political will,” he said.

The Indian commerce and industry minister, Anand Sharma said: “global recovery is taking place under the leadership of the emerging economies (India, Brazil, China and South Africa) and Turkey. We need growth and development with equity. We will try to boost our trade and investment links with Turkey.”

The chairman of Turkish-Indian Business Council, Cefi J Kamini said :”we have the opportunity to build the future together. Financing, technology transfer and joint collaboration can be further boosted provided a way is found out to bypass the red tape.”

The president of The Union of Chambers and Commodity Exchanges of Turkey - TOBB - and DEiK, Rifat Hisarciklioglu said called for relaxation the visa regime. He said that Indian businessmen can also gain access to the Turks in Balkans and Central Asia. He that Turkey attracted US$ 70 billion in IT sector, but India share was small despite being an It power. He suggested that Indian companies strike joint ventures with Turkish contracting companies in India and also with the banking and energy companies of Turkey.

The minister of state and co-chairman of Turkish-Indian Joint Economic Commission, Mehmet Aydin said that global financial crisis can be overcomed through cooperation, boosting trade and through progress in science and technology. But all these should be accomplished with a humane face. We urged for boosting investments on both sides in energy, transport, tourism and consultancy services.

India-Turkey trade is targeted to rise to US$ 6 billion by the end of 2010 from the level of US$ 2.8 billion in 2008. During the period January-November, 2009 the trade between the two countries was realized as US4 2 billion and Turkish exports to India were at US$ 367 million and India's exports to Turkey were at US$ 1.6 million. The exports of both the countries had declined as compared to the like period in the previous year.

Major items of Turkish exports to India are fertilizers, boilers, machinery, iron and steel, copper and copper articles, ores, slag and ash, oilseeds and oleaginous fruit, salt, sulphur, auto components, textile machinery, marble and motor vehicles. Major items of India's exports to Turkey are organic chemicals, cotton and cotton yarn, man-made staple fibres, iron and steel, boilers and machinery, motor vehicles, mineral fuel and oils. Indian tourist arrivals in Turkey have marked an increase. Indian tourists holding Schengen visas are given visas-on-arrival in Turkey.#