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Latest News of the Production Index in the Turkish Industrial Sector

14/01/2022 Turkish Economic Affairs 642 Latest News of the Production Index in the Turkish Industrial Sector

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The Turkish Statistical Institute (TÜİK) announced during the period of January 2020 a report including data of the industrial production index, where industrial production increased by 7.9% annually. When the sub-sectors of the industrial sector were analyzed in January 2020, there was an increase in the mining and quarrying sector index by 8.5% compared to the same month of the previous year, an increase in the manufacturing sector index by 8.2%, and an increase in the index of production index by 3.8% which affected the electricity, gas, steam, air conditioning and distribution compared to the same month in the previous year.

About Turkish Industrial Sector

The industrial sector is considered one of the most important investment sectors in Turkey, and the main destination for businessmen. This is due to several factors carried out by the Turkish state which includes providing the appropriate climate for those wishing to invest in this huge sector, in addition to the availability of an ever-evolving civilized infrastructure, and the availability of adequate and abundant industrial areas where the number of theses industrial areas reached 335 industrial areas in 2020 distributed over all Turkish territory. In addition, there are approximately 50 areas that are still under construction in addition to the services of water, electricity, gas, communications and social services, which are all available.

There are many tax exemptions in this field, including the abolition of value-added tax on land purchase, the imposition of reduced costs on water, electricity and gas, real estate tax exemptions for a significant period of up to 5 years after the establishment of the facility, and total exemptions for the construction process of the facility. It should be noted that any annexation of plots or separations will be tax-exempt, and is exempted from solid waste tax when the industrial zone does not benefit from the services provided by the municipality.

Most Important Industrial Sectors in Turkey

Chemical Industry

Most of the chemical investments focused on petrochemicals, fertilizers, organic and inorganic materials, the pharmaceutical industries, detergents, and soaps. After the global demand for chemicals increased by a large percentage, Turkey followed a new economic policy and occupied an attractive location for investment due to its economic growth, as it contributed nearly 80% of the new productive capacity in the chemical sector. Turkey currently has the largest soda manufacturing facility in the Middle East, with a total capacity of 750,000 tons annually.

Turkey meets 3% of the global needs for plastics and is ranked sixth in the world and second in Europe.

In 2018, the chemical industries were considered one of the most important industrial sectors in Turkey, with exports amounting to $7.2 billion, that is 7.6% of Turkish total exports.

Auto Industry

Turkish car exports ranked high among other industrial sectors in Turkey. As for the current year, the share of the auto industry in the total Turkish exports amounted to 17.2%, where the Turkish domestic demand for the auto market from the European Union accounted for 75%, and the total production of cars in Turkey reached 110,000 vehicles during the first month of 2020.

"The exports of cars in Turkey increased by 1% to reach an output of $ 4 billion in the first and second month of 2020, and the investment value amounted to approximately $ 20 billion until 2020," said Baran Çilek, World Bank Chairman.

Textile Industry:

The textile industry currently employs approximately 1.67 million workers, the volume of exports has reached nearly 18 billion dollars by the end of 2019, and the current annual plan seeks to achieve the number of 20 billion dollars. Currently, the textile and clothing sector represents 10% of industrial exports in Turkey.

In Conclusion:

It should be noted that there are multiple industrial sectors that we will talk about in other articles, among which are: iron and metal industries, steel industries, iron mold industry, building and construction materials industry, furniture industries, electronic industries, electrical industries, water and desalination filters industries

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