India-Türkiye tension escalates: Ankara’s support to Pakistan is hurting Türkiye’s economy

KKN Gurugram Desk |  Turkey’s continuous tilt toward Pakistan is beginning to have real-world consequences — not just diplomatically, but financially as well. In the latest development, India has revoked the security clearance of Turkish aviation firm Çelebi Ground Handling, a move that has rattled the company’s operations and caused significant financial losses.

The decision comes amid growing strategic and diplomatic tensions between India and Turkey, largely due to Ankara’s persistent support to Islamabad’s geopolitical narrative, particularly on Kashmir and regional Islamist politics. The fallout is now visible in bilateral economic relations — with aviation, defense, and trade cooperation coming under strain.

What Triggered India’s Action Against Çelebi Aviation?

Çelebi, a Turkish ground-handling company, operates in multiple Indian airports including Delhi, Mumbai, Bengaluru, and Hyderabad. The firm has been active in India’s civil aviation sector since 2009 and has invested hundreds of crores in ground services and cargo handling.

However, India’s Ministry of Home Affairs recently cancelled the firm’s security clearance, effectively halting its ability to operate in high-security airport zones. The cancellation follows “serious concerns” over Turkey’s growing diplomatic and defense partnership with Pakistan — a nation repeatedly accused of sponsoring cross-border terrorism against India.

 Why It Matters:

Security clearance is mandatory for aviation service providers operating in sensitive airport areas. Without it, Çelebi cannot legally conduct ground-handling operations, putting its long-term business prospects in India at risk.

 Financial Fallout: Turkish Markets React

The impact of India’s move wasn’t just diplomatic — it hit the Turkish financial markets directly. Çelebi’s parent company, Çelebi Aviation Holding, witnessed a steep decline in stock value after Indian regulators revoked security permissions.

Investors, alarmed by the geopolitical implications, began pulling out from aviation and logistics sector stocks in Turkey. Analysts estimate the company has already lost millions of dollars in projected revenue, with further losses likely if operations are not restored.

🇮🇳🇹🇷 India-Turkey Relations: From Pragmatism to Provocation

Historically, India and Turkey have had cordial diplomatic relations, largely driven by non-alignment and shared economic interests. However, relations have deteriorated in recent years due to:

1. Turkey’s vocal stance on Kashmir, particularly during United Nations sessions.

2. Turkish President Recep Tayyip Erdoğan’s repeated criticism of Indian domestic policies, especially post Article 370 abrogation.

3. Strengthening of Turkey-Pakistan military and intelligence ties.

4. Turkey’s open support to radical Islamist groups under the guise of religious diplomacy.

These developments have prompted India to recalibrate its Turkey policy — adopting a realpolitik approach that includes economic retaliation.

 Çelebi’s India Operations: Scope and Significance

Çelebi Aviation handles ground operations at several major Indian airports and is responsible for services including:

• Aircraft cleaning and servicing

• Baggage handling

• Cargo operations

• Passenger boarding

• Fuel logistics (in partnership)

The company has been part of public-private partnership (PPP) models and was even bidding for expansion contracts at regional airports.

Revoking its security clearance essentially renders Çelebi non-operational in these airports unless the decision is reversed or re-evaluated — which seems unlikely amid current tensions.

 India’s Strategic Use of Economic Leverage

India’s decision to target Çelebi is being seen by many as a calibrated economic response to Turkey’s political posturing. Analysts say the move serves multiple strategic goals:

• Sends a strong message to Turkey without direct diplomatic confrontation

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• Demonstrates India’s readiness to act on hostile foreign posturing

• Encourages international firms to maintain political neutrality while operating in India

• Warns other nations against leveraging Islamist solidarity against Indian interests

Potential Domino Effect on Turkish Businesses in India

Çelebi may not be the last Turkish entity to feel the heat. Several Turkish infrastructure and construction firms are involved in Indian projects — many under the Smart Cities Mission, metro rail construction, and logistics management.

Experts warn that continued political antagonism from Ankara could lead India to further review these associations. Companies with even remote links to Turkish state agencies may face additional scrutiny from Indian regulatory and intelligence agencies.

 Turkey’s Pakistan Policy: A Diplomatic Gamble

Turkey’s unwavering support for Pakistan is not without costs. While it seeks to emerge as a leader of the Muslim world, its aggressive posturing has created rifts with:

• India — a key trade partner and emerging power

• France and Greece — over regional disputes and religious extremism

• United States — due to arms deals with Russia and NATO misalignment

In the case of India, Ankara’s continued narrative on Kashmir and its military collaborations with Islamabad have pushed New Delhi to adopt counter-economic diplomacy.

 Global Reactions: Business and Politics Don’t Mix

Many global business forums and diplomatic observers have voiced concern over the fallout. International trade analysts caution that such political disputes spilling into commercial and investment landscapes could discourage multinational firms from engaging in India or Turkey unless diplomatic clarity is restored.

However, supporters of India’s move argue that national security and diplomatic respect must come before profit, especially in sectors like aviation and defense.

 Impact on India’s Aviation Sector

While Çelebi’s exit could create short-term logistical challenges, India has ample domestic and foreign alternatives ready to fill the gap. Major players like:

• AISATS (Air India SATS)

• Bird Group

• GMR Ground Handling

• Celebi’s Indian competitors

are expected to absorb Çelebi’s operational footprint in most metro airports.

Additionally, this opens up opportunities for Indian startups in aviation logistics and security-compliant handling services.

India’s action against Turkey’s Çelebi Aviation underscores a strategic shift in how New Delhi handles foreign nations that politicize diplomatic narratives against India’s sovereignty. It also highlights India’s growing use of economic levers to exert geopolitical influence.

As bilateral ties remain strained, Çelebi becomes the latest — but possibly not the last — casualty in a growing list of economic consequences tied to political decisions.

Whether Turkey reassesses its policy toward India remains to be seen. But one thing is clear — aligning with India’s adversaries is no longer without cost.