Uzbekistan is a country with a developed industry. Forty percent of production and more than a million people are engaged in this sector of economy. The share of the sector in making the country’s GDP makes up 14 percent.
Leading sectors of the industry are: cotton cleaning, machine building, textile, gas, precious metals, electronics, instrument making, aviation, oil processing, car making, and agricultural processing.
Other sectors, including chemical and oil and chemical, power, metallurgy, sector of construction materials and light industries are developing fast.
More than 2,200 concerns, companies and enterprises, engaged in more than 100 sectors of the economy, produce a wide variety of goods. They are aircrafts, tractors, automobiles and trucks, mechanical cotton harvesters, cables, looms, excavators, lifting cranes, elevators, power transformers, compressor stations and pipe compressors, TV-and radio-sets, refrigerators, fertilizers, construction materials, varnishes and paints, fabrics, cotton-fiber, and many others.
The largest sectors of industry on the amount of production are fuel and energy (25 percent), light and food industries (30.6 percent).
Agriculture is an important sector of Uzbekistan’s economy, accounting for approximately 28% of GDP and employing about 27% of the labor force. Cotton and grain are the country’s principal crops, but the elimination of quotas and price controls in 2020-2021 will facilitate a shift to higher-value fruit and vegetable cultivation. Exports of agricultural products contributed approximately 8.8% to Uzbekistan’s external earnings in 2020. The government hopes to increase agricultural productivity through the adoption of new technologies, and to further develop processing and packaging capabilities to add value to domestic and export products. Loans and grants for $600 million will be attracted to digitalize agriculture, increase land fertility, and introduce modern agricultural technologies.
Agricultural Knowledge and Innovation Centers will be created in 2021 in all regions, providing more than 100 types of agricultural services on a one-stop shop basis, including such important services as improving soil conditions, combating plant diseases, and selecting seeds. Uzbekistan also needs to invest in modernization of the existing infrastructure: it is estimated that $826 million will be spent on modernization of 299 pumping stations in 2021-2026. The government plans to develop the country’s textile sector, improve the value-added chain and hence process more of its own raw cotton into intermediary or consumer goods for export.
To improve the country’s food security, the Government of Uzbekistan has emphasized wheat production and supported poultry and animal farming over the past few years. Moreover, the profitability of fresh fruit and vegetables has increased in recent years and local farmers have aggressive plans for developing export markets for these products.
In January-October 2021, the enterprises in Uzbekistan produced 356.1 trillion soums worth of industrial products.
The volume of industrial production increased by 9.5% compared to the same period last year, the State Statistics Committee said.
During the reporting period, the manufacturing industry produced 82.9% of all industrial production, mining industry and open-pit mining – 9.6%, electricity, gas, steam and air conditioning – 6.8%, water supply, sewerage, waste collection and disposal – 0.7%.
By Sher Karimov