Trade Resources Policy & Opinion Russia to Increase The Share of Local Goods in The Domestic Textile Market

Russia to Increase The Share of Local Goods in The Domestic Textile Market

The Government of Russia is aiming to increase the share of local goods in the country’s domestic textile market to 50 percent, from the current share of less than 35 percent, reports Novosti news agency.

At present, Russian made special clothing is competitive because it is backed by Government orders. Textiles like blankets produced in the Ivanovo region are also in great demand deu to their low price and relatively good quality. However, for other things, Russia depends on imports, with China bagging a major share.

Russian President Vladimir Putin believes that it is possible to significantly reduce imports of textile products without violating any rules of international trade, i.e. without imposing any protectionist measures.

However, a series of measures need to be taken to enable the Russian textile industry to compete with foreign companies. These include carrying out large-scale modernization of production, construction of new textile plants, etc.

President Putin has directed all relevant agencies to prepare a package of proposals/measures that are required to be taken for import substitution in the textile industry, as one of the priorities to stimulate the growth of domestic economy.

One measure already announced is the promotion of the Russian and light industry through advertising campaigns in Russia and abroad. For the purpose, the Ministry of Industry has announced a tender for 131 million rubles.

The successful applicant would have to carry out advertisements as needed, create a website to promote Russian goods, as well as conduct in-depth market research.

The Ministry will accept applications for the tender till July 7, 2014, and the successful bidder, to be announced on July 10, would have to provide promotion services till December 20, 2014.

A few days ago, the Ministry of Industry proposed to limit Government purchases of imported products. According to the Ministry, the share of domestic products in procurements made by Government agencies should eventually grow to 80 percent.

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Govt Aims to Raise Local Share in Russian Textile Market
Topics: Textile