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I am travelling from Toronto to Kuwait via Istanbul on Jan 10, 2018. I hold Indian passport. I have 5 hours' layover at Istanbul for my connecting flight. Both my flights are Turkish Airlines. I want to go out of airport and do shopping before connecting to next flight. Do I need transit visa or e-visa?

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If you want to go out of the airport for shopping purposes you would need to apply for an e-visa.

Citizens of India are eligible for an e-visa and it will be processed in 1-2 days (i think within 24 hours). It is a completely online process i.e. application and payment. It will cost USD 40-50.

You can follow this link

However, you need to assess if 5 hours would be enough to first pass through immigration & exit the airport, travel to someplace for shopping, browse and buy and return to the airport and pass through immigration for the flight in time.

There are a number of shopping options at the airport too. You can have a preliminary look at http://www.ataturkairport.com/en-EN/airportguide/Pages/Giftshops.aspx

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