Türkiye’s textile, ready-made clothing, and home textile industries—longstanding pillars of exports and employment—are facing one of their most challenging periods. High inflation, suppressed exchange rates, and rising costs have put the sectors into a bottleneck, with exports falling after reaching $31.8 billion in 2024.
Medium-Term Program Pressures Industry
The Medium-Term Economic Program, in place since June 2023 to combat inflation, is straining production, exports, and employment. Turkish Textile Employers’ Association (TTSİS) President Nevzat Seyok revealed that 1,270 companies closed in the first four months of 2024, costing 20,700 jobs.
Losing Ground in Key Markets
Turkish Clothing Manufacturers’ Association (TGSD) President Toygar Narbay reported a $2 billion production loss last year—half from lost exports and half from increased imports. Despite higher EU and US import demand in 2024, Türkiye failed to gain market share, losing ground to China, Bangladesh, and Pakistan.
Yarn and Home Textiles Hit Hard
Istanbul Textile and Raw Materials Exporters’ Association (İTHİB) President Ahmet Öksüz warned that yarn producers are operating at a loss, urging an increase in the export exchange rate premium from 3% to 5% and expanded employment incentives.
Home Textile Industrialists and Businessmen Association (TETSİAD) President Hasan Hüseyin Bayram said exports in the segment fell 20%, with embroidery machines plummeting from 3,000 to just 50. He noted that Indian and Pakistani firms have bought older machinery at low prices, attracting customers away from Turkish suppliers.
Competitiveness at Decade Low
The TÜSİAD Competitiveness Index for the manufacturing sector fell to 86.1 in Q1 2025—below 2015 levels—highlighting how rising non-energy costs are eroding competitiveness.
Calls for Urgent Support
Industry leaders are calling for tax and social security reductions, updated foreign trade policies, a revised EU Customs Union, and renewed efforts to boost trade with the US. Without targeted support packages, they warn, market losses will be difficult to reverse and the crisis could deepen further.
