Uzbekistan is embarking on a strategic transformation of its light industry sector with the establishment of a specialized development agency backed by substantial financial resources. President Shavkat Mirziyoyev announced the creation of the Agency for Light Industry Development during a video conference on August 13, 2025, dedicated to expanding exports of finished garments to European and American markets while advancing standardization and digitalization across the sector.
The newly formed agency will coordinate activities across textile, leather, and silk industries, positioning itself as a central hub for sector-wide development initiatives. Nozimzhon Kholmurodov, First Deputy Minister of Investment, Industry and Trade, will lead the organization, bringing significant governmental experience to drive the ambitious reform agenda.
Strategic Structure and Financial Foundation
The agency’s operational framework includes a council comprising experienced entrepreneurs who will provide practical insights from the business community. A dedicated fund of $200 million will serve as the financial backbone, offering preferential working capital to industry enterprises. This substantial investment demonstrates the government’s commitment to revitalizing the sector through direct financial support rather than purely regulatory measures.
The agency’s primary responsibilities encompass maintaining continuous dialogue with businesses, developing solutions to reduce production costs, increasing manufacturing and export volumes, and expanding the utilization of “processing on customs territory” regime to achieve double growth in finished product exports. Additionally, the organization will focus on strengthening cooperation and facilitating financial recovery of underperforming enterprises.
International Market Penetration Strategy
The presidential directive includes ambitious targets for international expansion. The government aims to increase the number of enterprises with international certifications to 300, while developing a comprehensive roadmap for collaboration with global brands generating over $1 billion in annual revenue. These major brands will be invited to a significant exhibition in Tashkent scheduled for September 2025.
Strategic market penetration plans include opening trade houses in Saint Louis and New York, targeting the substantial American textile market valued at approximately $100 billion annually. Officials believe that with proper support mechanisms, exports to the United States could increase five to six-fold from current levels.
Technological Modernization and Digital Integration
The modernization agenda emphasizes technology integration through ERP systems and artificial intelligence implementation across manufacturing facilities. These digital solutions are projected to boost enterprise revenues by 20 — 30 percent while enhancing business transparency and reducing shadow economy activities. The state will partially compensate training costs for ERP system implementation, demonstrating governmental support for technological advancement.
President Mirziyoyev acknowledged the challenging global trade environment, citing rapidly changing international trade rules and ongoing logistical disruptions as factors requiring special approaches to textile industry development. The comprehensive support package, equivalent to 7 trillion soums ($560 million), reflects the scale of governmental commitment to sector transformation.
Long-term Development Vision
The agency will collaborate with international consultants to develop a textile industry development program extending to 2030, alongside proposals for modernizing leather, silk, and carpet manufacturing sectors. This long-term approach suggests sustained governmental focus on light industry development beyond immediate market challenges.
For international companies operating in textile manufacturing, interior furnishing, and construction materials sectors, these developments present significant opportunities for market entry and expansion in Central Asia. The substantial governmental financial backing, combined with preferential lending conditions and technology modernization initiatives, creates a favorable business environment for foreign partnerships and investments. International brands seeking manufacturing partnerships or supply chain diversification may find Uzbekistan’s enhanced infrastructure and governmental support particularly attractive, especially given the focus on meeting international certification standards and export market development.
The emphasis on digitalization and ERP system implementation also presents opportunities for technology providers and consulting firms specializing in manufacturing optimization. Foreign companies in construction and interior design sectors may benefit from the expanding textile and carpet manufacturing capabilities, creating potential synergies in material supply and product development. The planned trade houses in major American cities suggest serious commitment to building lasting international business relationships and could facilitate smoother market access for foreign companies seeking to engage with Uzbek manufacturers.
