Türkiye is embarking on a comprehensive green and digital transformation effort to increase the share of medium-high and high-tech products in its manufacturing exports. According to information compiled by Anadolu Agency (AA) from the 2025 Presidential Annual Program, Türkiye plans to enhance the competitiveness of its manufacturing industry by focusing on export-oriented, technology-intensive production that maximizes the use of local resources while emphasizing green and digital transitions.
To this end, policies will prioritize investments, production, employment and exports in the manufacturing sector, aimed at fostering competitive production through green and digital transformations.
An analysis of employment, production, trade, added value and technology levels across manufacturing sectors will identify priority industries, including chemicals, pharmaceuticals and medical devices, machinery, electrical equipment, automotive, electronics and railway systems. This approach aims to increase high-value-added production through technology, innovation, product quality and efficiency.
All targeted sectors fall under the high and medium-high technology categories, and advancements in these areas are expected to contribute to reducing the technological dependency of the manufacturing industry and facilitating structural transformation.
By 2025, the share of medium-high technology industries in manufacturing exports is projected to rise from 38% to 39.5%, while high-tech products are expected to increase from 3.9% to 4.2%, collectively nearing a total share of 44%.
During the same period, the manufacturing sector’s share of gross domestic product (GDP) is expected to grow from 18.5% to 21.5%, with manufacturing exports projected to rise from $248 billion to $268 billion (TL 8.49 trillion to TL 9.18 trillion).
2 key institutions
To transition Turkish industry toward a technology-intensive and high-value-added structure, the government plans to support green and digital transformation-focused investments, strengthen high-tech ventures, enhance collaboration between industry, academia and government, and expand organized industrial zones.
The Scientific and Technological Research Council of Türkiye (TÜBİTAK) will support firms’ green transformation-focused research and development (R&D) and innovation activities. This will include the development of green technologies, products and processes, as well as green innovation initiatives.
Technology-based startups, SMEs, large companies, universities, research infrastructures and public research centers will also benefit from this support. Funding will be provided under various initiatives, including the Green Innovation Technology Mentorship Support and the Green Transformation Support for Industry, with 231 projects and 15 platform applications currently under evaluation.
The Small and Medium Enterprises Development Organization (KOSGEB) has approved support for 637 SMEs aimed at enhancing resource efficiency, reducing waste production, conserving water and implementing sustainable production methods through solar energy investments.
298 projects and TL 259 million
Under the HIT-30 Program, implemented by the Ministry of Industry and Technology, strategic investments in semiconductors, mobility, green energy, advanced manufacturing, healthy living, digital technologies, communications and space will be prioritized for support. In 2022, a total of 373 projects received funding approval amounting to TL 409 million, while 298 projects are set to receive TL 259 million in support in 2023 and 2024.
As of August, the Credit Guarantee Fund (KGF) provided guarantees totaling TL 1.1 trillion against a commercial credit volume of TL 1.4 trillion across 483,000 firms through 50 support packages.
As part of the Attraction Centers Support Program, 41 project proposals with a total budget of TL 1.95 billion were submitted in 2023, focusing on strengthening organized industrial zone infrastructures, increasing production and employment and preserving cultural heritage. The program will continue to prioritize the development of industry and technology through 2025.
Since 2021, the Producing Cities Program has provided a total of TL 227.4 million in support for 22 projects. In 2023, 26 project proposals with a total budget of TL 347 million were submitted, with the process ongoing.
Financing costs
To enhance competitiveness and efficiency across all sectors, Türkiye’s Green Industry Project will support SMEs’ solar energy investments and projects in the circular economy. Technological investments that improve process optimization and energy efficiency will receive support.
The green transformation will also involve local and national development of components, equipment and systems related to hydrogen production, storage, transportation and usage in industry. Additionally, financing costs associated with digital transformation processes for manufacturing SMEs will be reduced.
Corporate capacities of model factories will be strengthened, and lean, digital and green transformation-focused training and consultancy services will be offered to enterprises, especially SMEs.
Alternative methods will be developed to ensure that industrial zones, organized industrial zones, and small industrial sites are sustainably created in terms of access to raw materials, logistics, energy, railways, port connections and environmental factors.
The development of qualified human capital necessary for the manufacturing industry’s twin transformation will also be facilitated.
