Turkey is expected to soon start negotiations for a free trade agreement (FTA) with

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India to increase economic engagement between the two.

In its trade policy review report, the Eurasian country has said that a feasibility report in this regard has indicated that such a pact would contribute to improving the bilateral trade relations.

"...The FTA negotiations are expected to start following the completion of relevant signature/ratification process of these reports," it said.

The bilateral trade was $ 3.5 billion in 2010-11.

According to industry experts, sectors like tourism, pharmaceutical, petro-chemicals and minerals in Turkey hold huge potential for Indian companies.

Turkey, a member of European customs union, could help India entry to Europe and member-countries of Commonwealth of Independent States (CIS) like Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, and Uzbekistan.

Key items exported by India to Turkey include cotton and man-made yarn, machinery, pharmaceuticals, transport equipment and chemicals.

Major imports from Turkey comprise minerals, fertilisers, nuclear reactors and machinery.

India is in the process of negotiating several free trade pacts with countries like the European Union, New Zealand, Australia and Indonesia.

Comprehensive free trade pacts with Japan and Malaysia have been operationalised last year.

In an FTA, both the sides reduce or eliminate duties on most of products they trade.