The dynamic development of the textile and clothing and knitwear industries has a significant positive effect on the national economy.
In the production of textiles and clothing, serious structural changes have also taken place: a shift away from the sale of primary products with low levels of processing and a shift towards increasing production and sales of finished products with high levels of processing.
If in 2016 the revenue from the sale of yarn accounted for 52 percent of the total revenue of the industry, then in 2020 it was already 38, despite the fact that the production of yarn in these years continued to increase, and the volume of revenue from its sale doubled. At the same time, the share of 4th redistribution products in the total revenue of the industry increased from 32 percent in 2016 to 42 percent in 2020. The share of products of the 3rd level of redistribution similarly increased from 16.5 to 19.4 percent. All this suggests that the industry is rapidly moving away from the production of mostly raw materials and semi-finished products and reorienting to the production of products intended for the end consumer.
As you know, the issue of employment of the population is acute in Uzbekistan. Despite the progressive growth, the economy is not yet able to meet the demands of a rapidly growing population for the required number of jobs. The textile and clothing industries, as labor-intensive industries, have the ability to create massive jobs.
Over 2017-2020, the development of industries led to a more than threefold increase in jobs: from 100,5 in 2016 to 315 thousand in 2020. The largest increase in jobs in 2020 relative to 2016 is noted in the production of knitwear - 3.3 times. Last year, the share of the sewing and knitwear production, that is, the production of finished products, accounted for 70 % of all employed in the industry, while in 2016 – it was 61%.
Another important effect is an increase in revenues to the governmental budget. Annual budget receipts from textile and garment and knitwear enterprises increased four times - from 309 to 1227 billion soums. However, it should be noted that in connection with the pandemic and the response measures to support enterprises, revenues in 2020 were lower than in 2019, where the governmental budget received taxes from textile and clothing enterprises for a total of 1,552.5 billion soums, which is more than that of 2016 for five times in nominal terms.