Turkey is the seventh largest exporter of textile and apparel products in the world. Over the last five years, Turkey’s total textile and apparel exports declined at a CAGR of -0.7% to reach $26.8 billion in 2017, while imports have reduced at a CAGR of -1.1% to reach $11.8 billion. Turkey remained the 11th largest importer of T&A products globally. Its textile and apparel trade balance recorded a deficit of $15 billion in 2017.
Man-made textiles is Turkey’s largest imported category, representing 47% of total textile and apparel imports (2017). This is followed by cotton textiles, apparel and others with a share of 26%, 18% and 9% respectively. Top 10 suppliers accounted for ~65% of textile and apparel imports by Turkey. China is the largest supplier accounting for 20% share, followed by India and the US with a share of 8% and 7% respectively. In terms of y-o-y exports to Turkey, all countries exports have grown excluding India and Germany. India’s exports to Turkey declined at 3% y-o-y.
India was the second largest supplier of textile and apparel products to Turkey in 2017. India’s exports of T&A to Turkey stood at $0.58 billion in 2017, whereas exports of textile and apparel products witnessed a decline of 9% over the last five years. India’s share has also declined from 7% to 5%. Man-made textiles is the largest category with a share of 73% in India’s T&A exports to Turkey. This is followed by cotton textiles and apparel having a share of 20% and 3% respectively.
Turkey is one of the major markets for man-made based textile products. A large part of the MMF-based fabric manufactured and processed in India are low value added and primarily supplied to the mass domestic market. In order to give a boost to exports, Indian firms need to invest in MMF-based textile manufacturing processes. Also, the firms that are already manufacturing man-made based textile products should target Turkey as a key market. Moreover, Turkey is also a major importer of cotton textiles. Owing to availability of raw material and infrastructure, Indian firms have a potential to increase their market share in Turkey in cotton textiles as well.
By Wazir Advisors