Localization of production is currently among the major factors of additional stimulation of the national industry amid prolonged instability in global markets. Uzbekistan is confidently moving forward on this course, refusing from importing 100 different titles of goods, and considerably cutting 300 titles last year alone.
The Localization Program for 2017-2019 envisages the implementation of projects with a total output of $ 3.4 billion. A total of 1,146 projects on the establishment of competitive import-substituting manufactures are scheduled for three years.
960 projects with a total output of localized products at approximately 6.5 trillion soums are scheduled for 2017. A total of 122 kinds of popular products are recommended for production by domestic manufacturers. More than 400 additional localization projects with an annual output of over 900 billion soums are currently getting prepared for launch. Once launched, they will be included in the Localization Program with the appropriate benefits and preferences.
There are new criteria for extended and re-included localization projects. It is envisaged to ensure the development of at least 36% of products in the first year, at least 45% in the second and at least 50% in the third year from the moment of inclusion in the program. In turn, the share of exports in the total volume of sold products should reach at least 20% in the second and about a third in the third years of operation.
Imports in more than 100 commodity groups – mine trolleys, vacuum pumps, tower cranes, refractory and acid-resistant materials, sandwich panels, carpets, artificial turf, bоttles, starch and others – have been completely discontinued over the last three years. Imports of 350 items have been cut more than twice: TVs, air conditioners, refrigerators, vacuum cleaners, lamps, car filters and radiators, steel and copper pipes, ceramic tile, linoleum, various types of fabrics, paints, children’s toys, sports equipment and other goods.
NUMBERS
Nearly 2,000 localization projects have been carried out in Uzbekistan over the past seven years, making import substitution effect go beyond $7.5 billion per year.
