Armenia`s authorities taking steps to develop textile exports

ArmInfo.  The Armenian authorities are taking steps to develop the potential for textile exports. For this purpose, it is planned to subsidize textile  industry enterprises that actively developed the export direction  over the previous year, but were not engaged in re-export. The  decision on this was made at the meeting of the RA government on  August 7.

As the RA Minister of Economy Gevorg Papoyan noted in his speech, the  production of clothing and sewing accessories is one of the strategic  export sectors of the Republic of Armenia and plays a key role in the  economy, but it is difficult not to notice serious risks and problems  that require a comprehensive solution. Currently, local textile  enterprises are in need of raw materials. Conducted studies show that  if producers have raw materials of the appropriate quality and  volume, the volume of production in the textile industry will tend to  grow.

To increase market stability and balance, it is necessary to  diversify the supply chain by stimulating the import of raw materials  and the export of textile products. In this context, ensuring access  to affordable working capital financing is of great importance, as  due to the lack of capital required to import raw materials,  enterprises often experience problems with production volumes and  product quality, which can have a negative impact on the economy.  Thus, diversification of supply chains for textile industry  organizations, in particular, diversification of raw material imports  and support for work on international e- commerce platforms, will  contribute to the qualitative growth and development of the textile  industry in Armenia, stimulating the country's export potential and  economic development.

Ensuring the diversification of raw material supply chains for  textile industry organizations is considered one of the areas of  economic modernization, as it ensures stability and continuity of  production, which is undoubtedly an important component of  modernization.

The development of e-commerce in the textile industry is as important  a factor in economic modernization as the diversification of supply  chains. It opens up new opportunities, improves the business  environment and encourages local producers to develop and comply with  international standards, as well as to modernize exports.

Currently, online trading has become an important factor in  increasing the recognition and availability of Armenian products in  both local and international markets. The rapid development of  technologies creates new opportunities for selling products in  various markets, and many manufacturers can use these platforms to  expand exports and increase international sales.

For these purposes, the RA government will subsidize interest rates  for financial resources attracted by domestic enterprises from the  country's commercial banks for the purchase of necessary raw  materials and advertising of products on international platforms for  12 months. At the same time, interest rates will be subsidized at 8%  in the case of a loan in drams and at 6% in foreign currency.