Türkiye’s textile and readyto- wear sector has been going through a serious test in recent years, shaped by global fluctuations, rising costs, and increasing difficulties in accessing finance. Assessing the current state of the sector, Türkiye Exporters Assembly (TİM) Chairman Mustafa Gültepe emphasizes that both shortterm support mechanisms and medium- to long-term structural transformation steps are of vital importance. According to Gültepe, textiles and ready-towear still hold a strategic position in Türkiye’s export-led growth story; however, maintaining this position requires competitiveness to be firmly re-established.
Declining exports put pressure on the sector and employment How did 2025 unfold for the textile and apparel sector? What were the most frequent issues and expectations raised by your members?
“Ready-to-wear and textiles are two sectors that complement each other and cannot be considered separately. These sectors played a leading role in opening up Türkiye’s economy through exports. We are global players in both fields. However, it would be difficult to say that things have been going well over the past three years. The contraction that began in exports continued throughout 2025. We closed all of the past 11 months in negative territory in ready-to-wear, and six out of 11 months in textiles. This year, our 11-month ready-to-wear exports remained at around USD 15.5 billion, while textile exports reached only USD 8.6 billion. Compared to the same period of 2024, we are down by 6.6 percent in ready-to-wear and 0.9 percent in textiles. The contraction in exports is also negatively affecting employment.
While employment in textiles and ready-to-wear stood at 959,395 at the end of 2024, it declined to 873,198 as of September 2025. This shows that the two sectors lost 86,000 jobs in just nine months. From the end of 2022 to September 2025, total employment losses reached 350,000. For both textiles and ready-to-wear to overcome the current bottleneck, we must create conditions that will allow us to regain our competitiveness. This requires restoring the balance between exchange rates and inflation, increasing the employment support planned at TRY 3,500 for 2026 to TRY 5,000 and extending it to all companies without discrimination, providing premium support for labor-intensive sectors, and reducing the interest rate on rediscount credits to 15 percent. In addition, raising the foreign exchange conversion support—currently at 3 percent—to 10 percent for sectors generating a current surplus would make a significant contribution to the sector’s recovery.”
Value-added production and access to finance play a key role Which structural reforms are needed to strengthen the sector’s global competitiveness? What kind of arrangements should be made regarding export incentives, Eximbank loans, and KGF supports?
“I tried to summarize the short-term measures above. In the medium and long term, we need to focus on productivity, increase valueadded production by leveraging the power of design, innovation, and branding, and rapidly complete the twin transformation. In addition to these, we should make greater use of trade diplomacy to work on arrangements that will allow our exporters to enter major markets such as the European Union (EU) and the United States under more advantageous tariff conditions. Access to affordable finance is particularly critical in periods like this. We must develop financing models that enable access to lowinterest, long-term credit.”
Low exchange rates and high interest rates push production costs upward How do cost structures, exchange rate policies, and access to finance affect the sector?
“Due to the ‘low exchange rate, high interest rate’ policy implemented for the past 2.5 years as part of the fight against inflation, Türkiye has become one of the most expensive production hubs in the world today. Our production costs are 60–65 percent higher than those of our Asian competitors and 15–20 percent higher than those in Eastern Europe. These costs will rise even further as of the beginning of the year, as the employer cost of a minimum-wage worker increased to USD 930 on the day the new minimum wage was announced.”
Türkiye maintains its position as a brand country in textiles and ready-to-wear Where do you see Türkiye’s textile and apparel sector in the coming years?
“I believe that ready-to-wear and textiles— sectors that pioneered many firsts in Türkiye— will continue to be important for our economy in the medium and long term. Based on this belief, we structure all our game plans and strategies around our medium- and longterm goals. Today, Türkiye is a brand country in both textile and ready-to-wear production. We stand out from our competitors thanks to our speed, quality, geographical proximity to a major market such as Europe, and compliance with European Union (EU) social standards. We want to add the twin transformation to our existing advantages. Both TİM and our ready-to-wear and textile exporters’ associations see the twin transformation as a strategic goal. We collaborate with ministries and universities to support this transformation.
For example, alongside TİM, the Istanbul Apparel Exporters’ Association (İHKİB), where I currently serve as chairman, launched three new projects this year focused solely on the twin transformation. We also completed our three-year METAMORPHOSIS Project this year. One of the project’s most significant outcomes, the İHKİB Digital Transformation Center (DDM), has been put into service for the sector. In our EUR 7 million Transition to Green Economy Project, launched in November with EU grant support and led by İHKİB, stakeholders include TİM, the Istanbul Textile and Raw Materials Exporters’ Association (İTHİB), the Istanbul Chemicals and Chemical Products Exporters’ Association (İKMİB), and the International Transporters’ Association (UND). Through this 36-month project, we will strengthen companies’ capacities to measure and reduce their carbon and water footprints.”
Companies focusing on transformation will stand out in 2026 What is the most important message you would like to convey to your members and sector stakeholders for 2026?
“No matter how challenging the conditions may be, I have never given in to pessimism. Our sectors, which have pioneered many firsts in Türkiye, have successfully overcome numerous global fluctuations and possess the knowledge and experience to overcome this period as well. In the coming period, we will see a competitive environment where companies that increase productivity, enhance value added, and place sustainability at the center will come to the forefront. For this reason, it is crucial for companies to keep their mediumand long-term transformation goals alive. As TİM and our exporters’ associations, we will continue to stand by our exporters throughout this transformation process and strengthen the sector with guiding projects and support mechanisms.”
Sector publications play a critical role in bringing transformation to the field Is there a message you would like to share specifically with our readers?
“The textile and ready-to-wear sector is being rapidly redefined through technology, sustainability, and technical expertise. This transformation process holds the potential to move Türkiye’s production strength toward a more qualified and more competitive structure. I believe that publications like Tekstil & Teknik, which guide the sector, play a very important role in ensuring that this transformation is properly understood and reflected in practice. I think this contribution will become a lasting reference point shaping the future of the sector.”
