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THE ROLE OF INDUSTRIAL ENTERPRISES IN THE DEVELOPMENT OF ECONOMICS IN UZBEKISTAN

Z.E. Alijonova, Sh.D. Doniyorova

Abstract

The article discusses industrial enterprises in Uzbekistan and their contribution to the development of the national economy. Modern approaches to increasing enterprise efficiency under current conditions and several proposals for raising them to higher levels are presented.

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SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 76 THE ROLE OF INDUSTRIAL ENTERPRISES IN THE DEVELOPMENT OF ECONOMICS IN UZBEKISTAN Z.E. Alijonova1, Sh.D. Doniyorova2 Student of “Economics (by sectors and industries)” program1 Acting Associate Professor, Department of “Economics and Management”2 https://doi.org/10.5281/zenodo.18052912 Abstract. The article discusses industrial enterprises in Uzbekistan and their contribution to the development of the national economy. Modern approaches to increasing enterprise efficiency under current conditions and several proposals for raising them to higher levels are presented. Keywords: sustainable development, infrastructure, small business, automotive industry, food industry, plastics, clothing, textiles. Introduction It is important to note that the economy of Uzbekistan is entering a phase of stable development. However, in this process, issues such as economic imbalance between regions, uneven industrial development, and inefficient distribution of resources persist. In particular, the concentration of industry in certain regions and its weak development in remote areas negatively affect investment attractiveness and small business activity. This research aims to identify key problems in regional economics, analyze mechanisms that improve investment attractiveness, and support small and medium-sized businesses. Main part Industrial development is high in Tashkent city, Tashkent, Navoi, and Fergana regions, but relatively low in Karakalpakstan, Jizzakh, and Surkhandarya regions. Infrastructure, logistics, and financial services networks across regions are unevenly developed. In addition, the industrial sector lacks sufficient integration with R&D centers. Nationwide, only 220 industrial enterprises have R&D centers. A total of 565 industrial enterprises produce goods worth 41 trillion soums and export products worth 1.4 billion USD. For example, the Artel R&D center reduced the cost of air conditioners by 12.4 dollars, saving the company 4.3 million dollars in annual production expenses. Integrating industrial sectors with scientific research and developing public–private cooperation based on international experience can significantly increase production efficiency. Ensuring the effective use of investment in scientific and industrial fields requires implementing the “science–government–private sector–market” principle, which includes: 1. Partial financing of private R&D centers and developing industries jointly with the private sector; 2. Providing concessional loans and tax incentives for projects based on the spin-off principle; 3. Developing the venture capital market; 4. Introducing R&D results into the public procurement system to support production; 5. Establishing cooperation with private R&D centers. Implementation of this mechanism will align research outcomes with market needs, strengthen technology transfer processes, and create an innovative ecosystem with the private SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 77 sector. As a result, public funding combined with private investment will lead to the creation of new competitive industrial products, increasing export volumes. Access to credit for small and medium-sized enterprises is limited, especially in rural areas. Key factors influencing investment attractiveness include infrastructure, tax incentives, and government guarantees [1]. Although government mechanisms such as free economic zones, concessional loans, and the “one-stop-shop” system have shown positive results in some regions, their application still varies significantly across the country. One of the crucial factors in increasing economic efficiency in industrial enterprises is the targeted, optimal, and productive use of economic potential. In light industry enterprises, implementing a system for efficient use of economic capacity requires product standardization, which in turn necessitates studying the quality control indicators of consumer goods such as social, functional, reliability, ergonomic, aesthetic, ecological, and safety parameters [2]. By the end of 2024, clusters in Samarkand, Andijan, and Namangan regions achieved significant success in the light industry sector. In particular:  “Samarkand Textile” produces 5 million units of finished products per year;  “Andijan Cotton” manufactures textile products that are 100% export-oriented;  “Namangan Silk Cluster” is strengthening its position in the Chinese and Turkish markets with its silk products [3, 4]. Sector | (% ) Share (%) Physical Volume Index (%) Production Volume (billion soums) Metallurgy industry 25.0 108.0 76 897.1 Other non-metal mineral products 4.7 118.3 14 447.1 Food products 12.5 102.5 38 494 .6 Beverage production 3.1 104.9 9 403.1 Textile products 12.5 110.1 38 553.6 Clothing manufacturing 4.2 112.3 13 065.6 Chemical products 5.6 105.0 17 312.3 Coke and petroleum products 4.0 104.1 12 439.2 Rubber and plastic products 2.1 129.7 6 528.6 Electrical equipment 3.0 102.4 9 257.8 Finished metal goods 1.8 81.8 5 425.3 Motor vehicles, trailers, and semi-trailers 13.1 115.0 40 303.8 Table 1. Industrial production indicators (January–June 2024) As it can be seen from the data [5], the main pillars of industry are metallurgy, automotive manufacturing, food production, and the textile sector. Among the fastest-growing areas are the production of plastics, clothing, and other mineral products. A decline is observed in some industries, including the production of finished metal goods. Overall, industrial growth is stable, but the level of development varies across sectors. Conclusion The results of the study show uneven industrial and economic development across the regions of Uzbekistan. While Tashkent, Navoi, and Fergana exhibit strong industrial activity, other SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 12 DECEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 78 regions are developing more slowly, negatively affecting investment and small business activity. Improving investment attractiveness requires strong infrastructure, tax incentives, and government guarantees. Although state mechanisms work effectively in some areas, their broader implementation is necessary. Reducing regional disparities and supporting small and mediumsized businesses are crucial factors for achieving economic stability. REFERENCES 1. Kahhorov A., Tokhtasinov B. Regional economic development and investment attractiveness. Tashkent, 2022. 2. State Committee of the Republic of Uzbekistan on Statistics. Report on the economic indicators of 2024. Tashkent, 2024. 3. Abduaziz Qahhorov. Mechanisms for developing small and medium-sized businesses. Tashkent, 2023. 4. Botirjon Tokhtasinov. Regional investments and economic growth. Tashkent, 2022. 5. UzDaily.uz. Statistical Agency: Industrial output in Uzbekistan reaches 370 trillion soums. 20/07/2024. https://www.uzdaily.uz/en/statistical-agency-industrial-output-in-uzbekistanreaches-370-trillion-soums/