In a world where global trade is both a lifeline and a battleground for economic growth, two export powerhouses—Bengaluru in India and Turkey—are taking sharply divergent paths to address the mounting pressures on their export sectors. While Bengaluru, Karnataka’s economic engine, finds itself hobbled by infrastructure bottlenecks and logistical woes, Turkey is rolling out sweeping new financial support packages aimed squarely at boosting its exporters’ access to credit and capital.
According to reports from the Visvesvaraya Trade Promotion Centre (VTPC), Bengaluru’s Urban and Rural districts have seen a modest but telling 1% decline in exports as of October 5, 2025. This dip is more than a statistical blip; it’s a warning sign. The VTPC’s latest strategy documents paint a picture of a city—and its surrounding region—struggling to keep pace with the demands of global commerce. Key sectors are feeling the pinch: machinery exports are down 1% annually, electrical machinery shipments have slipped by 5%, and plastics and medical equipment are lagging behind as well. The reasons? Persistent traffic congestion, soaring logistics costs, and limited access to ports, all of which are eroding Bengaluru’s competitive edge.
Bengaluru Rural, which accounts for 12% of Karnataka’s total exports, faces even steeper hurdles. The region suffers from a lack of cold storage, insufficient inland container depots, and a dearth of plug-and-play industrial facilities. The Satellite Town Ring Road (STRR)—a long-awaited project slated for completion by December 2025—and a suburban rail network scheduled for 2027 are being touted as critical fixes to improve port access and reduce transit times. But as the VTPC reports warn, unless these projects materialize on schedule, and unless targeted infrastructure spending ramps up, the region’s export growth could stagnate or even reverse.
Experts are sounding the alarm. The upcoming Foxconn iPhone plant in Devanahalli and several proposed apparel parks are expected to put even more strain on the already stressed infrastructure. Former Federation of Karnataka Chambers of Commerce and Industry (FKCCI) president Balakrishna MG and TV Mohandas Pai, chairman of Aarin Capital, have both voiced concerns that without a decisive shift in priorities, the situation could worsen. Pai put it bluntly: "Lack of proper port connectivity and poor service roads have increased transport costs and reduced accessibility. Karnataka depends on other states' ports instead of developing its own—an avoidable blunder. Unless the govt prioritises infrastructure over freebies, logistics will remain the weakest link. Rising costs will make our goods less competitive."
The government, however, is pushing back against what it sees as an overly simplistic diagnosis. Large and Medium Industries Minister MB Patil told The Times of India that blaming infrastructure alone misses the bigger picture: "Problems exist everywhere—from London to Tokyo. Bengaluru is a global city with an immense movement load. Global factors like tariffs, H1B visa policies and rising labour costs affect businesses far more. The perception that Bengaluru's exports suffer because of infrastructure is incorrect." Patil also pointed to nearly Rs 10 lakh crore in new investments and a commitment to reinvest 70% of tax revenues locally to upgrade infrastructure. He added that new port and tunnel projects are under discussion to ease existing bottlenecks.
Still, the VTPC’s findings are hard to ignore. Urbanization is outpacing infrastructure development, traffic snarls are the norm, and businesses often lack awareness of international standards. In rural areas, sericulture is in decline, with farmland being diverted for real estate and cocoon output dropping by 8.3% due to water scarcity and droughts. Many industrial zones remain under-occupied or poorly serviced, underscoring the urgent need for a more strategic approach.
Meanwhile, halfway across the globe, Turkey is taking a very different tack. On October 5, 2025, Anadolu Agency reported that Turkey’s Treasury and Finance Ministry is rolling out two fresh support packages designed to make financing more accessible for exporters, including those adhering to participation (Islamic finance) principles. These initiatives are part of an intensified effort under the Treasury-backed guarantee system to shore up Turkey’s export sector and stimulate economic growth.
Under the new plan, the existing TL 10 billion guarantee limit for loans through Türkiye’s official export credit agency, Türk Eximbank, will be doubled to TL 20 billion. There’s also a new package specifically targeting e-export companies, featuring a TL 500 million guarantee limit, a 100% guarantee rate, and a cap of TL 500,000 per beneficiary. The second package, delivered via Katılım Finans Kefalet AŞ (KFK), introduces a TL 4 billion guarantee limit for companies seeking finance based on participation principles, with an 80% guarantee rate and maximum limits of TL 20 million for SMEs and TL 40 million for non-SMEs.
The numbers are striking. Between 2020 and 2025, Turkish exporters have received a total of TL 118.8 billion in credit. In just the first half of 2025, four new packages created an additional TL 42 billion in credit opportunities. As of September, TL 24.9 billion in credit had been disbursed under the system, representing nearly 60% of the total for the period. Türk Eximbank’s capital has soared from TL 13.8 billion to TL 55.3 billion, with a further increase underway that will push the total to TL 88.4 billion by 2025. Export supports reached $39.7 billion in the first nine months of the year—a 15% jump in dollar terms compared to the same period last year—and are expected to hit $52 billion by year’s end.
Other reforms have also come thick and fast. The daily rediscount credit limit was raised from TL 300 million to TL 4 billion, foreign currency rediscount loans were reopened, and interest rates on rediscount loans were trimmed. The requirement to sell an additional 30% of export revenues in rediscount credit usage was removed, and a new model was introduced to help high-tech and high-value-added producers tap into these credits. Service exporters have seen their tax exemption rise by 30 percentage points, now reaching 80%.
Treasury and Finance Minister Mehmet Şimşek summed up the government’s approach: "We are strongly supporting our exporters through Türk Eximbank and other policies. We are always behind our exporters and the real sector, and we continue to support them." He added, "With these new support packages, we aim to ease financing access for companies that face collateral constraints. In the future, for lasting welfare growth, we will continue to prioritize investment, employment, production, and especially exports."
Turkey’s proactive, finance-driven strategy stands in stark contrast to the infrastructural struggles facing Bengaluru. While both regions are acutely aware of the stakes involved in maintaining their export prowess, their chosen remedies reflect different diagnoses of the problem—and different levers of power. For Bengaluru, the challenge is to match its economic ambitions with the hard realities of roads, rails, and ports. For Turkey, it’s about ensuring that capital flows freely to those who can turn it into export success. As the global trade landscape continues to evolve, the fortunes of both will depend on how well they can adapt, innovate, and deliver on their promises.
