Embassy of India

Baku, Azerbaijan

Over the years, India’s bilateral trade with Azerbaijan has increased substantially from around US$ 50 million in 2005 to around US$ 1093 million in 2019.  In 2020, due to COVID-19 pandemic, bilateral trade decreased to US$ 583 million in 2020, but recovered to US$ 739 million in 2021 registering an increase of 27%. Import from India increased from US$ 44.67 million in 2011 to US$ 144.67 million in 2021. The important items of direct and indirect imports from India to Azerbaijan are rice, drugs, mobile phones, granite, ceramic tiles, devices and equipment of automatic regulation and control, black tea, mechanical spades and excavators, kali and natrium bromide, antibiotics, meat of large horned livestock, human vaccine, centrifugal liquid-pumps etc. The major items of exports from Azerbaijan to India were crude oil, iodine, oil coke, methanol etc. 

2. India’s export to Azerbaijan in 2021 was US$ 144.67 million and India’s import from Azerbaijan was US$ 594.43 million. During January-December 2021, crude oil continued to be Azerbaijan’s main export to India, valuing US$ 584 million accounting for 98% of total export. Rice was the main commodity of import from India, amounting to US$ 24.91 million, which accounts for 73.4% of total import of rice in Azerbaijan. Drugs was second major product imported from India in the amount of US$ 24.49 million and overall pharmaceutical products import from India was US$ 29.1 million. Since February 2016, the concerned authorities in Azerbaijan started accepting dossiers for registration of Indian Pharma products and the final registration of products started in 2017. India’s share in pharmaceutical import in Azerbaijan has increased from 3.9% in 2020 to 7.3% in 2021, becoming the third major source of drugs in Azerbaijan. Mobile phone was the third main commodity of import from India, amounting to US$ 22.8 million with 9.7% of total import of mobile phones in Azerbaijan.

3. Potential products of imports from India are Rice (HS100610/30), Black tea / Other black tea (HS 090230/40), Drugs / Human vaccine / Containing other antibiotics (HS 300490 / HS 300220 / HS 300420), Kali & natrium bromide (HS 282751), Types of mechanical spades & excavators (HS 842959), Parts boilers for central heating (HS 840310), Centrifugal liquid - pumps (HS 841370), Agricultural tractors& forestry tractors (HS 870193), parts and accessories for motor vehicles (HS 870899) and Cars (HS 870322), Granite (HS 680223), Ceramic tiles (HS 690721), Spices (HS 0904 - HS 0910), Articles of apparel and clothing accessories knitted or crocheted (HS 61) / Articles of apparel and clothing accessories, not knitted or crocheted (HS 62) / Other made up textile articles; sets; worn clothing and worn textile articles; rags (HS 63).

4. In terms of India's investment in Azerbaijan, ONGC Videsh Ltd acquired 2.72% participating interest in Production Sharing Agreement for Azeri, Chirag and deep-water portion of the Gunashli (ACG) fields in the Azerbaijan sector of the Caspian Sea from Hess (ACG) Ltd in 2013. ONGC Videsh Ltd invested US$ 1,298.18 million in the project till March 2020. The Embassy of India continued its trade promotion activities by organising a large number of India-Azerbaijan B2B meetings during 2021-22 in diverse sectors in coordination with Indian and Azerbaijani Chambers and export promotion councils.

BILATERAL TRADE WITH INDIA YEAR-WISE
(In million US$)