Industry will become the engine of the new economic model

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29 November 2021 14:42 (UTC+04:00)

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By Vugar Khalilov

The industrial sector will be the driving force behind Turkey’s new economic model to save the economy from price scissors, Yeni Shafak reported.

Unlike economic policy that prioritized high interest rates, the industrial sector will be the main player in the new economic model, which promotes investment, production, employment and exports, the report adds.

It was added that the number of employees in the industry increased by 116% and reached 4.7 million. Despite the challenges of the pandemic, the number of industrial workers increased by 700,000 people in 2021.

While the number of enterprises grew by 74% to 410,000, the number of enterprises registered in the Industrial Register Information System stood at 13,500 in 2021 alone. production in the sector increased by 146% and reached 23 billion dollars (291 billion TL).

It was noted that the new economic model aims to make Turkey a global base for value-added and high-tech production. Thus, the share of high value-added products in exports has increased significantly recently, the report points out.

While the export volume increased sevenfold, the share of machinery and equipment increased from 5.8% to 9.8% and the share of motor land vehicles from 10% to 13.9% over the past 19 last years. Moreover, the share of high value-added processed food and beverage products in exports has also increased.

On the other hand, the share of clothing and textiles has decreased significantly.

It was added that 24 industrial areas such as steel, petrochemicals, energy, pharmaceuticals and automobile production will play an important role in the new economic model, where profitable investment areas have been offered to industrialists by the through leasing.

In 2020, $7.5 billion in revenue was made in the industrial fields, where around 25,000 people are employed. However, this figure will reach 25 billion dollars once all the investments are made. In addition, the number of employees should amount to 108,000 people.

In addition, new incentive systems will be launched in line with the new economic model. Similarly, regional incentives will be applied to reduce the development gap between the provinces. In this context, it was indicated that the ranking of the socio-economic development of the provinces had been studied and the incentive system had been revised according to the different needs of the provinces.

In addition, priority investments determined in the legislation and high value-added investments that will contribute to reducing the current account deficit will be supported. In addition, incentives will be provided to projects that will achieve technological transformation. On the other hand, it was reported that $135 billion (1.7 trillion Turkish Lira) incentive certificates have been issued for investments since 2003.

In accordance with the new model, investors will be directed to the production of medium-high and high-tech products, as well as investments in technology and research and development. In this sense, rational and effective policies will be implemented in many areas ranging from the R&D and technological ecosystem to qualified human resources, from SMEs and entrepreneurship to regional development.

So far, $6.6 billion in exports have been made from the technology development zones, where 7,073 companies and 73,645 employees are involved, the report concludes.

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