American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 16, | Sep., 2023 P a g e | 201 www.americanjournal.org FROM ANCIENT TRADITIONS TO MODERN GREATNESS: THE DEVELOPMENT OF THE TEXTILE INDUSTRY OF UZBEKISTAN Yormatov Ilmidin Toshmatovich Candidate of Economic Sciences, Docent, Fergana Polytechnic Institute, Fergana, Uzbekistan E-mail: ilmidiv.yormatov@mail.ru A B S T R A C K E Y W O R D S As one of the largest textile production bases in Central Asia, Uzbekistan has made significant progress in the development and improvement of the textile industry in recent years. After the arrival of new leadership in the country in 2016, the textile industry became one of the main priorities for the development of the economy of Uzbekistan. In this article, the main points of the development of the textile industry in the new Uzbekistan were considered. Industry, export, light industry, textile industry, joint venture, investment, economy, cluster. Introduction The textile industry in Uzbekistan has a rich and long history dating back several thousand years. Uzbekistan is famous for its unique cultural heritage in textile art, which developed due to ancient historical connections and cultural exchanges along the Great Silk Road. We will consider the history of the development of the textile industry in Uzbekistan and its importance in modern society [1,2]. The first information about the textile industry in the territory of Uzbekistan dates back to the period of the medieval state of Khorezm, which covered the territory of modern Uzbekistan. During this period, weaving was raised to the level of art, and the craftsmen created unique patterns and decorations on the fabric, which became a unique symbol of the region [3]. Methodology Today, the textile industry has become one of the most developed sectors in Uzbekistan. According to DM Mukhamedova, adviser to the chairman of the "Uztekstilprom" Association, the first silk weaving factory was put into operation in Fergana in 1921. In 1924, the "Krasnaya Zarya" plant started working in Tashkent. In 1931, the Ferghana Textile Combine, in 1936, in Tashkent, and 1970, the Bukhara Textile Enterprises began to operate. In 1932, the People's Commissariat of Textile Industry was established, and in 1949, it was transformed into the Ministry of Light Industry of the Uzbek SSR [4,5,6,7]. During the 1941-45 war, the silk factory where parachute silk was produced in Margilon was evacuated from Russia. Also, the "Yulduz" factory in Tashkent was exported from Russia and specializes in the production of silk for parachutes. In 1967, the "Malika" knitting factory was launched in Tashkent. Production of men's shirts and socks has been launched in Kokan, Namangan. American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 202 www.americanjournal.org In the 19th and 20th centuries, the textile industry of Uzbekistan experienced various changes and developments. At this time, the first textile factories and enterprises producing silk, cotton and woollen fabrics were built. Textiles have become the main source of income for many residents. After independence in 1991, the textile industry continued to develop. Large-scale modernization of equipment and the introduction of new production technologies were carried out [8,9]. Currently, these enterprises are operating effectively in all districts of the Republic, and these enterprises produce spun yarn, kalava, raw and finished fabrics. Knitting and sewing products: the production of clothes and household goods is advanced. The importance of the development of this sector for the republic's economy can be explained, first of all, by the availability of local raw materials (cotton, silk, leather, wool, hemp). At the same time, the textile industry is associated with high labour intensity compared to other industries. This is important in providing employment to the population (especially in rural areas), improving their standard of living, and solving many other social problems. World experience shows that in the case of favourable conditions, The development of the textile industry can be described as vivid. Due to the deep processing of raw materials, a high level of added value occurs, as a result of which the amount of income for the population, enterprises and the state increases, as well as high growth rates of exports and a reduction in the volume of imports (ready-made garments), are ensured [10,11,12]. Results and Discussion As indicated in the concept of development of textile and light industrial enterprises in the period until 2005, in the early 1990s, light industrial enterprises in Uzbekistan were mainly equipped with equipment that was physically and mentally obsolete, unable to produce exportable products. and the technological equipment installed in these enterprises, in general, the working conditions did not meet the requirements of the time. Less than 10 per cent of the cotton fibre grown in the republic is reprocessed in local industrial enterprises. Product export exceeded 7.7 million US dollars [13,14,15]. In general, the Republic is considered a cotton raw material base, and there is no attention paid to the development of the finished goods production industry, and the sewing and knitting industry is not developed. Despite the political and economic difficulties in the first years of independence, the leadership of the country began to pay special attention to this sector, and thanks to the support of the government, radical changes took place in the sector. Decision No. 166 of the Cabinet of Ministers of the Republic of Uzbekistan dated April 29, 1996 "On State Support Measures for Local and Light Industry" establishes a program for technical re-equipment of industrial enterprises and commissioning of new capacities. served as More than 35 investment projects have been implemented in the field, and capital investments worth 152 billion soums, including foreign investments of 644.4 million US dollars, have been absorbed. As a result, in 6 years, the annual processing volume of cotton fibre was increased to 240,000 tons per year, and the total fibre processing volume was increased from 12% to 24%. The volume of product exports increased from 7.7 million US dollars to 733 million dollars, and an additional 32,000 new jobs were created. With the attraction of foreign investment, two large factories in Tashkent and Toytepa, the joint enterprise "Kabul-Fargona Co", the joint enterprise "Chinaz Tokimachi", and the joint enterprise "Kabul-Uzbek Co" .” joint venture was established. Technical re-equipment works at "Oksaroy American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 203 www.americanjournal.org tukimachi Ltd" enterprise, "Kosansoy tekmen" joint venture, "Papfen" JV "Namangan textile", "Asnam textile" JSC, "Kashteks", "Gurlen", "Anteks" textile complexes done. ", "Korakultex" JV, "Midatex" JV and others. Technical re-equipment works were carried out at "Bukhorotex" JSC, "Chinabad PTF" JSC, "Toshtekstil" JSC, and "Yakkabog Textile Factory" JSC from their funds. The dynamics of investments in light industrial enterprises are determined by the following figures - in 1994, the volume of foreign investments in light industrial enterprises amounted to 5.25 million US dollars, in 2001 the growth rate reached 644.4 million US dollars, or in 1994 120 times more investment was made in the last 7 years compared to the volume of foreign investments [12,13,14]. Since 1995, 55 different decisions and decrees of the President and the Cabinet of Ministers have been issued for the development of the light and textile industry in Uzbekistan. In recent years, as a result of comprehensive measures for the development of the textile and sewing-knitting industry in our country, as a result of the implementation of comprehensive measures to support the investment and export activities of industry enterprises, 100% of the cotton fibre and 45% of the yarn produced in the republic are being processed. , as well as the annual export potential of the industry exceeded 3.2 billion dollars. Since the new leadership came to Uzbekistan in 2016, a new era has begun in the development of the country's textile industry. Important reforms and measures are being implemented to stimulate the growth and improvement of the textile industry, which is one of the main sectors of the economy of Uzbekistan. One of the main directions of development of the textile industry in new Uzbekistan is to create a favourable investment environment for attracting both foreign and domestic investments to the industry. In this regard, the Uzbek government provides various tax and financial incentives for investors, simplifies registration and licensing procedures, and creates special economic zones and industrial parks. In the following years, several regulatory legal documents were adopted for the further development of this field. Let's get acquainted with some of them: In 2017, the Textile Fund of Uzbekistan was established by the decision of the Government of the Republic of Uzbekistan. This fund was established to finance and support the development of the textile industry in our country. It enables the financing of industrial enterprises on preferential terms and supports innovative projects and equipment renewal. The textile fund plays an important role in the development and support of the textile industry in Uzbekistan. On June 23, 2017, the Law of the Republic of Uzbekistan "On the priority areas of development of textile and light industry" was adopted. This law defines the strategic priorities for the development of the textile and light industry in our country, as well as support measures, including tax and customs benefits, financial support, and favourable conditions for the development of entrepreneurship in these industries. defines the creation. The law is aimed at encouraging the development and modernization of the textile and light industry in Uzbekistan and increasing their contribution to the country's economy. In 2019, the state support program for cotton cultivation was adopted in Uzbekistan. This is aimed at developing the raw material base for the textile industry, especially given Uzbekistan's specialization in cotton production. The program includes financial support for cotton growers, modernization of production processes and improvement of raw material quality. Its purpose is to ensure the use of high- quality and cheap raw materials for the textile industry and to create conditions for increasing the competitiveness of the industry. American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 204 www.americanjournal.org In 2017, the medium and long-term development program of the textile and light industry was adopted in Uzbekistan. In this program, the strategic goals and objectives of the development of the textile and light industry in our country, as well as measures aimed at modernization of equipment in the field, export support, development of human resources and energy efficiency are defined. The program is aimed at the long-term development of the industry and includes a wide range of measures to ensure the sustainable growth and competitiveness of the textile and light industry in Uzbekistan. It is also planned to create a favourable investment and business environment in the sector and introduce new technologies and advanced production methods. Also, during this period, several state programs for the development of high-tech textile clusters and textile parks were adopted in Uzbekistan. Some of them include: 1. Textile cluster development program - this program is aimed at the creation and development of specialized textile clusters where textile industry enterprises with high production capacity are concentrated. The program provides financial support, assistance in the modernization of equipment and production technologies, as well as the exchange of information and experience between enterprises within the cluster. 2. Textile park development program – this program aims to create specialized industrial parks for the development of the textile industry. Textile parks create favourable conditions for attracting investment, locating enterprises, developing infrastructure, and sharing knowledge and experiences. The program provides financial support, concessions and peripherals to enterprises registered in textile parks. These programs are of strategic importance in the development of the textile industry and serve to create a strong infrastructure, attract investments, develop high-tech production and increase the competitiveness of Uzbek textile products in the world market. It was established by the decision of the President of the Republic of Uzbekistan No. PF-5285 of December 14, 2017. 1,989 enterprises and entrepreneurs are members of the Uztoqimachiliksanoat Association of Textile and Sewing Industry of Uzbekistan, more than 500,000 specialists and employees are employed in production worth 3.9 billion. attracted foreign investments in dollars. Also, 134 cotton-textile clusters are operating. The high efficiency of cotton-textile clusters is recognized internationally. Currently, the Republic of Azerbaijan has started to study this experience. At the same time, increasing competition in world markets, Thanks to the active support of the government and the implementation of these strategies, the textile industry in Uzbekistan is reaching new heights. The export of textile products from the country has increased significantly, which contributes to the growth of the economy and the creation of new jobs. Uzbekistan is attracting more and more attention as a reliable partner in the textile industry and is becoming a well-known brand in the international market. Conclusions In conclusion, the development of the textile industry in the new Uzbekistan after 2016 includes a wide range of measures and strategies, including attracting foreign investment, diversifying production, upgrading equipment, industrial clusters and organization of parks. These efforts serve to make Uzbekistan an important participant in the world textile field, to strengthen its position in the market and to the stable growth of the country's economy. American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 205 www.americanjournal.org References 1. Decree of the President of the Republic of Uzbekistan, No. PQ-4453 dated 16.09.2019 "On measures to promote the further development of light industry and the production of finished products. 2. Decree of the President of the Republic of Uzbekistan 21.01.2022 PF-53 "On measures to promote the production of deep processing and high added value finished products and their export at textile and sewing and knitting enterprises". 3. Decree of the President of the Republic of Uzbekistan, 01.2023. 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