Azerbaijan, strategically located at the crossroads of Europe and Asia, has been a significant player in the global trade for decades. Thanks to its natural resources especially oil and gas which has helped positioned themselves as the key player in the region.

1. Trade Volume and Growth: India is the 7th largest trade partner of Azerbaijan, with trade in building materials such as ceramic tiles, paving stones, and granite reaching $200 million. Azerbaijan’s expanding non-oil sectors, driven by GDP growth, indicate a rising demand for infrastructure and construction projects. Azerbaijan imports building materials from neighbouring countries like Turkey, Russia, Iran, and Georgia due to their geographical proximity and trade relations.

Growth of export of Tiles from India

Indian Exports to Azerbaijan: India primarily exports pharmaceuticals, machinery, electrical equipment, vehicles, and textiles to Azerbaijan. In recent years, there has been a notable export of construction materials such as ceramic tiles, paving stones, and granite. Despite local production, Azerbaijan also imports cement and concrete products to meet the demand for construction projects, including high-rise buildings, infrastructure

developments, and residential complexes. Imported steel and metal products, including rebars, beams, and structural components, are essential for constructing reinforced concrete buildings and infrastructure projects. Timber and wood products are imported for various construction purposes, such as flooring, doors, and decorative elements in residential and commercial buildings.

Azerbaijani Exports to India: Azerbaijan’s exports to India mainly consist of crude oil and petroleum products. Other items include chemicals, minerals, and agricultural products.

1. Tourism and Cultural Ties: Azerbaijan is becoming a popular tourism destination for Indians, with approximately 180,000 Indian tourists visiting in 2023.
2. Challenges and Solutions: Despite potential tariff and non-tariff barriers and logistics complexities, efforts like the International North-South Transport Corridor (INSTC) are underway to enhance trade routes between India, Azerbaijan, and Iran. This corridor aims to reduce transit times and costs, facilitating smoother trade flows.
3. Business Collaboration: Trade fairs and international exhibitions are highlighted as crucial platforms for industry leaders and businesses to establish new trade relationships and network across emerging markets. Such events can foster direct connections between stakeholders from India, Azerbaijan, and beyond.

Indian manufacturers of building materials should explore partnerships and export opportunities in Azerbaijan, leveraging associations like ATIA to navigate the market.

In conclusion, the strategic location of Azerbaijan and its economic diversification efforts present a compelling opportunity for Indian businesses, particularly in the construction and trade sectors. By leveraging existing frameworks like the INSTC and participating in trade events, stakeholders can enhance bilateral trade and foster sustainable economic partnerships between the two nations.

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