In Uzbekistan, over the past seven years, textile production has increased 4.2 times, presidential press service reported on April 16.
Currently, over 6,000 enterprises collectively employ approximately 570,000 individuals.
In recent years, the sector has experienced significant growth due to active investments and the adoption of new technologies. For instance, in 2023, the production value of textile and sewing-knitting products reached $8.2 bn. Additionally, textile exports in 2023 amounted to $3.1 bn, with entry into three new markets, expanding the export geography to 83 countries.
However, if its composition is analyzed, certain shortcomings are also visible. For example, the share of high value-added products in the export of finished goods is small. About 80% of exports go to traditional markets. The volume of exports to Europe is not as expected.
To address these challenges, Uzbekistan aims to leverage its raw material advantage and enhance product competitiveness. According to the conclusion of the "Boston Consulting Group," Uzbekistan has the potential to produce textile products worth at least $15 bn and create 500,000 new jobs. For example, the price of 1 kilogram of yarn in our country is on average 28% cheaper than world prices. This is a huge opportunity to increase the finished product and compete,
Financial support is also available, with $50 mn allocated at the beginning of last year for various textile projects. An additional $100 mn is planned to be allocated after the initial amount is utilized. One of the convenient ways of production is to open branches of large enterprises in neighborhoods. Therefore, it was noted that it is necessary to expand this practice.
Raw material supply remains a critical issue for textile enterprises. Although Uzbekistan has a fiber processing capacity of 1,300,000 tons, only about 1 mn tons of fiber are currently being processed. Hence, efforts to reduce the cost of cotton cultivation and increase productivity are crucial.
During the meeting, more than 100 businessmen participated and shared their concerns and proposals, ranging from building textile enterprises to simplifying export procedures and accessing financial resources.
Officials were given the task of thoroughly studying these issues, putting them into practice, and if necessary, improving the legislation.
The "Uztogamiliksanoati" association plays a pivotal role in the industry's development, now managed by a Council consisting of entrepreneurs from each textile branch. This initiative aims to facilitate production, investment, export, and employment growth.
Moving forward, Uzbekistan will focus on working with international brands, increasing the number of exporters with international certificates, and promoting national products in European countries. Additionally, research and development groups will be organized to ensure the harmony of science and practice in textile clusters.
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