Home / Knowledge / News / Textiles / Serbian Textiles showing 3% CAGR
Serbian Textiles showing 3% CAGR
20
Jul '16
The textile manufacturing market in Serbia is expected to grow at a modest rate, posting a CAGR of 3% during 2015-2020, a recent study on the sector in the former Yugoslav state reported.

Backed by government policies and favourable trade agreements with the European Union (EU) apart from its strategic location at the crossroads of Europe and Asia, Serbia's textile sector is predicted to accelerate further with improvement in the business environment and inflow of FDI, noted the study by Technavio, a London-based research and advisory group.

Textile manufacturing, which is export oriented and labour intensive, is highly favoured by the government due to its huge employment generation potential. Serbian government therefore relaxed monetary policies and introduced structural reforms to provide a fillip to the sector.

Elaborating on the factors favouring the growth of textile sector, Technavio analyst Brijesh Kumar Choubey said Serbia's location in the Balkan peninsula at the crossroads of Europe and Asia provides it with a significant advantage from the perspective of trade.

This has been a key factor in influencing the inflow of FDI into the country's manufacturing sectors, including the textile manufacturing industry. Moreover, it puts the country in close proximity to leading fashion capitals, such as Italy and France, and enables the manufacturers to keep abreast of changing market trends and respond speedily, he said.

Favourable trade agreements with EU such as the Free Trade Agreement in 2005 and Stabilization and Association Agreement in 2008, have more than doubled the export of textiles to the 28-nation bloc, which is the country's most important trading partner. Exports account for nearly 70% of the revenue generated by the textile industry in Serbia.

Serbia has also signed trade agreements with Belarus, Turkey, the US, and members of Central European Free Trade Agreement (CEFTA), which also provides manufacturers with potential growth opportunities in foreign markets.

Although wages on a global scale are higher in Serbia than China, the East European country's strength lies in its highly skilled and qualified labour force that have contributed to the availability of subcontracting services at a low cost.

This proved to be a major driver of FDI in the country and in turn led to a rise in SMEs in the country over the past several years, the report noted. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Urmil Arya

Sushila International, a well established textile organisation established ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search