On November 7, President Shavkat Mirziyoyev chaired a videoconference on the development of local industry.
Thanks to the conditions created in our country for entrepreneurship in the regions are increasing small production. Jobs are being created, and the goods in demand are being produced.
However, with the current difficult situation in the world, disruptions in the operation of transport and logistics chains affect this industry as well.
For 9 months of this year, the volume of industrial production in our country has increased by 5,3%. Nevertheless, there was a decrease in the production at 65 large enterprises in the regions. Despite the allocation of the necessary funds by the state, the infrastructure has not yet been brought to all 118 industrial zones. The possibilities of the «GSP+» system in export are not yet used to their full extent.
These and other issues, as well as the key tasks for the next year, were discussed during the meeting, which was held in a critical tone.
«In this delicate situation, the heads of industries and khokims (governor) must seek possibilities, utilize internal reserves, and come up with plans and initiatives», Shavkat Mirziyoyev has said.
The instructions were given to provide raw materials to the manufacturers of household appliances, carpets and furniture, as well as to support the enterprises that cannot operate at full capacity.
As it is known, last year Uzbekistan joined the GSP+ system of preferences of the European Union. Over 6,2 thousand different products are duty-free for export to the European market. Along with this, the state provides subsidies for transportation costs up to 70%. However, Europe accounts for only 6% of textile exports, 3% of electrical goods, and 1% of silk and food products.
The President underscored the need to support the domestic enterprises in obtaining international certificates and entering the foreign market. The possibility of increasing the volume of industrial exports to Europe up to $700 million next year was emphasized.
One of the largest local industries is the textile industry. In recent years, the entrepreneurs of our country have well mastered this field. Nevertheless, some products are still imported.
Therefore, the Uzbekistan Textile and Garment Industry Association was tasked with localizing at least 50 types of new products. For such projects, $100 million will be allocated to the commercial banks, and $50 million to the carpet production. The state will compensate 70% of the transportation costs for the export of fabrics and knitwear to European countries, Turkey, Egypt and Morocco.
In general, the necessity of developing the textile industry with new dynamics was noted. A program to export industry products worth more than $5 billion will be adopted next year.
Another important area is the production of building materials. The industry's potential allows it to produce a wide range of goods and provide jobs for a large number of people. In this regard, the President took the initiative to develop an industrial mortgage program aimed at supporting such enterprises. At the first stage, $50 million will be allocated, with the loans to be issued for 7 years with a two-year grace period.
The industrial zones for building materials will be established in the city of Nukus, and in the districts such as Bulakbashi, Karaulbazar, Farish, Chust, Pakhtachi, Saryasi and Uzbekistan. A cluster of porcelain and sanitary ware will be created in the city of Angren.
The goal was set to bring exports in this industry to $1 billion.
Our country is famous for its long tradition of furniture production. Thus, about 100 makhallas (local neighborhood community area) in Bukhara, Namangan, Samarkand, Andijan, Fergana and Khorezm are specialized in this area. The President emphasized the need to create the furniture industry centers near these makhallas in order to expand the conditions for artisans.
It was instructed to extend the validity of customs incentives for furniture manufacturers until January 1, 2024, and to increase the number of projects in this area.
There are also a wide-range of opportunities in the jewelry business. Our country has a $300 million market. This demand can easily be met by the local jewelers. Therefore, in order to support them, a number of preferences will be established, starting on December 1.
In particular, guarantees from any banks and the Export Promotion Agency will be accepted for deferred payment for gold and silver. This option will also be available to individual jewelers. The requirement for a license for the temporary import and export of raw materials required for jewelry will be abolished, and precious and decorative stones will be exempt from customs duties.
A particular attention at the meeting was paid to increasing exports.
«We will increase export assistance next year. From now on, there will be a system in which subsidies to industries will be given depending on the volume of exports. Following today's meeting, an additional $300 million and 350 billion Uzbek-soums will be allocated for the development of the regional industry. If the set goals are achieved, it will be possible to provide an additional $2 billion in exports next year», the President has said.
The measures to export the goods of the regional industry worth more than $8 billion next year were analyzed. The ambassadors of Uzbekistan were tasked with promoting the attraction of modern technologies and investments from abroad.
The heads of industries and khokims provided information on the issues discussed at the meeting.