Russia plans to double textile exports by 2025. Last year, exports of Russian-made textile products were almost 20 per cent higher than in 2016. However, despite this, textile products as a proportion of all Russian exports last year accounted for only 0.4 per cent.
The plan is to make this about two percent by 2025. One key to this growth and planned export expansion has been the devaluation of the Russian currency in recent years. This has made exports more attractive for Russian textile producers, even compared to deliveries to the domestic market.
A decade ago, the condition of Russian textile industry was catastrophic. It was badly affected by the decline of the Russian economy in the 1980s and 1990s. Many textile factories went bankrupt, while the market was occupied by cheap textile goods from South East Asia. However, the situation has changed significantly since then, while Russian textile goods have begun to enjoy significant demand both in the domestic market and abroad.
Russian exporters face good prospects because of an increase in labor costs in China and some South East Asian production hubs, the prices of Russian goods becoming more competitive as a result.