The Importance of Industrial Development in The Regions and The Main Directions for Their Effective Use

Abstract

This article highlights the economic trends and factors influencing the development of industry in the Andijan region of the Republic of Uzbekistan, based on the significance of industrial production and regional specialization. The development of the region has been studied and analyzed through the lens of its industrial sectors. Development directions have been proposed based on the region’s revenues.

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Sattikulova Gulnora Akhmadkhanovna. (2025). The Importance of Industrial Development in The Regions and The Main Directions for Their Effective Use. International Journal Of Management And Economics Fundamental, 5(04), 10–14. https://doi.org/10.37547/ijmef/Volume05Issue04-03
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Abstract

This article highlights the economic trends and factors influencing the development of industry in the Andijan region of the Republic of Uzbekistan, based on the significance of industrial production and regional specialization. The development of the region has been studied and analyzed through the lens of its industrial sectors. Development directions have been proposed based on the region’s revenues.


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International Journal of Management and Economics Fundamental

10

https://theusajournals.com/index.php/ijmef

VOLUME

Vol.05 Issue 04 2025

PAGE NO.

10-14

DOI

10.37547/ijmef/Volume05Issue04-03



The Importance of Industrial Development in The
Regions and The Main Directions for Their Effective Use

Sattikulova Gulnora Akhmadkhanovna

Senior lecturer at the Department of Economics at Andijan State Texnikal Institute, Uzbekistan

Received:

18 February 2025;

Accepted:

15 March 2025;

Published:

17 April 2025

Abstract:

This article highlights the economic trends and factors influencing the development of industry in the

Andijan region of the Republic of Uzbekistan, based on the significance of industrial production and regional
specialization. The development of the region has been studied and analyzed through the lens of its industrial

sectors. Development directions have been proposed based on the region’s revenues

.

Keywords:

Regional industry, industrial production, regional industrial specialization, internal capabilities and

opportunities.

Introduction:

Since the early years of independence,

Uzbekistan has pursued a targeted territorial policy and
implemented

profound

institutional

reforms.

Currently, comprehensive regional development
measures are being undertaken, with targeted regional
programs in progress.

As a logical continuation of these territorial reforms, in
January 2017, the Cabinet of Ministers of the Republic
of Uzbekistan adopted a Resolution "On the approval
of the regulation on the information-analytical
department for the comprehensive socio-economic
development of territories." Furthermore, in February
2017, Presidential Decree No. PF-4947 introduced the

“Action Strategy for Five Priority Areas of Development

in 2017

–2021” [1], and Decree No. PF

-60 dated January

28, 2022, launched the "New Development Strategy of
Uzbekistan for 2022

2026" [1].

The third direction of this strategy defines several
priority tasks, such as sustainable regional industrial
development,

construction

of

new

industrial

enterprises, enhancing the regional economy through
increased export and industrial potential, and creating
favorable conditions for the establishment of
industries. These tasks aim to fully realize the economic
interests of regional economic entities, optimize
production, strengthen intra- and inter-sectoral
cooperation, expand localization processes, and

effectively utilize this sector’s potential to remain

competitive in the market. Important focus areas
include increasing local production, developing
interregional

industrial

cooperation,

boosting

employment by leveraging internal regional resources,
and improving material well-being based on this
foundation. These are becoming increasingly significant
in regional economic policy.

Decree No. PF-60 of January 28, 2022, outlines
objectives from 21 to 36 under the third direction of the
New Development Strategy of Uzbekistan for 2022

2026 titled “

Ensuring Accelerated Development and

High Growth Rates of the National Economy

.” The

strategy sets the following goals for industry:

Goal 22

: Increase industrial production volume

by 1.4 times, continue industrial policies aimed at
stabilizing the national economy and increasing the

industry’s share in gross domestic product.

Goal 24

: Ensure uninterrupted electricity

supply to the economy and actively implement "green
economy" technologies in all sectors, improving the
energy efficiency of the economy by 20%.

Goal 28

: Increase the export potential of the

Republic and reach an export volume of 30 billion USD
by 2026.

Goal 29

: Create conditions for organizing

entrepreneurial activity and establishing stable income

sources, increasing the private sector’s share in gross


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domestic product to 80% and in exports to 60%.

Today, the industrial sector offers effective solutions to
challenges such as ensuring market balance, increasing
economic competitiveness and population income,
localizing production, and generating employment.
Notably, creating one job in manufacturing leads to the
creation of two to three jobs in other sectors [3].

The dynamism of the production network significantly
influences the development of other industries and
sectors of the economy. In particular, the development

of the food and light industry sectors stimulates the
growth of agriculture, forestry, and fisheries [6].

Assessing the development of industry and its sectors
in regions is a complex economic process and cannot
be measured by a single indicator. Therefore, it is
appropriate to consider various development trends
when evaluating regional industrial progress. This
system of indicators is reflected in the table below (see
Table 1).

Table 1

System of indicators characterizing the level of industrial development in the region

[6].

Indicators

1st Order

2nd Order

3rd Order

4th Order

Economic indicators

Industrial output per capita Industrial production

index

Real Sector
Developme

nt Index

Economic

activity

index

Export volume per capita

Export index

Labor productivity in
industry

Labor productivity index

Employment in industry
(thousand people)

Employment network
index

Technological Indicators

Capital productivity

Capital Productivity

Index

Technologi

cal Level

Index

Capital intensity of
industrial production

Incremental Capital

Output Ratio

Number of patents
obtained from networks
(per 100,000 people)

Object indicators

Number of facilities in the
network

Employment level

Production

function

TFP

Value of fixed production
assets

Capital intensity and

profitability

Investment in fixed capital
Natural and raw material
resources

Employment level

Project indicators

Number of high-tech
production creation
projects

Share of high-tech
products in industrial
output

Integral

diversificati

on index

Economic

openness

index

Number of high-tech

Share of high-tech


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manufacturing projects

products in industrial
output

Participation of domestic
business entities in large
investment projects

Region's participation
ratio in large investment
projects

Number of localization
projects

Localization ratio

Number of export
expansion projects

Share of products
intended for new export
in total industrial output

Integral

export

expansion

indicator

Share of exports in GDP

Export orientation ratio
of the economy

Share of foreign direct
investment in total
investment volume

Foreign investment
participation ratio

Number of operating
enterprises with foreign
capital participation

Based on the above-mentioned factors, it can be stated
that each region will have its own production potential.
Accordingly, the level of industrial production in one
region may exceed or lag behind that of another.

The main objectives of regional socio-economic
development programs include: the rational use of
untapped reserves and opportunities of the regions, as
well as the available rich raw material and resource
base; ensuring the development of production in close
connection with regional capacities; utilizing existing
industrial enterprises to their full potential; organizing
production in existing buildings and facilities;
diversifying production and promoting deep processing
of raw materials; manufacturing high-tech products
with high added value; and creating new jobs. Through
the implementation of such programs, the population
is targeted towards addressing key issues such as
increasing employment levels [5].

In the development of these programs, special
attention is paid to the following areas [4]:

For the comprehensive development of

regions

an analysis of conditions in the medium term,

assessment of their impact, identification of existing
principles and challenges;

A system of target indicators developed using

modern methods of socio-economic forecasting,
linking target indicators with key developmental
programs being implemented or under development;

The development of concrete measures to

achieve the set goals, taking into account specific

funding sources.

The regional socio-economic development programs
envisage a fundamental improvement of the regional
organization of industrial production based on:

The exploration of new deposits and the

expansion of the mineral resource base, the
introduction of modern, energy-saving, and highly
efficient technologies for the extraction and processing
of mineral raw materials in strategically important
industries

such as the oil and gas complex and the

mining industry

ensuring sustainable development

through these efforts;

The expansion of export-oriented production

based on the competitive advantages of each region,
and the establishment of new production facilities in
the construction materials sector that meet
international quality standards;

The rapid development of processing

industries in the textile sector based on local
agricultural raw materials, primarily increasing the
volume of cotton fiber processing in domestic
enterprises;

The broad development and regional

placement of small and micro enterprises, as well as
branches of large enterprises focused on processing
local raw materials and producing competitive finished
products [7].

Regional development programs prioritize the
advancement of industrial enterprises in all cities and


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districts of each region. Through the rational
coordination of sectoral development programs and
the implementation of specific investment projects,
structural transformations related to the placement of
industrial enterprises are expected to be achieved [6].

In Andijan region, between 2022 and 2026, the gross
regional product and industrial output are projected to
increase by 1.4 times, agricultural production by 1.2
times, service sector volume by 3.0 times, and
construction activities by 1.4 times. Target indicator
parameters have been developed for each district.

In collaboration with the Ministry of Economy and
Finance, the Ministry of Investments and Foreign
Trade, and the Government of Andijan region:

Specific target measures have been developed

to achieve the parameters of the approved 2022 target
indicators;

By November 1 of each year, comprehensive

measures aimed at achieving the target parameters for

upcoming years and implementing the “road map” are

to be submitted for approval to the Cabinet of
Ministers [5].

During the 2022

2026 period, the following tasks were

assigned to local authorities to ensure the effective
implementation of the developed programs:

Regularly study the challenges that hinder the

implementation of the projects included in the
programs and take timely measures to eliminate them,
resolve any issues arising during implementation and
operation, and remove bureaucratic obstacles;

Effectively organize the process of obtaining

reliable information on vacant or inefficiently used
buildings and structures in the region and promptly
provide it to business entities;

Pay special attention to the process of

connecting ongoing projects in the region to power,
gas, water, sewage, and heating systems, applying best
practices in this field;

Identify the specific characteristics of each

region and mobilize all available opportunities based
on these features to create a more favorable
environment for project initiators to develop new
projects for the upcoming year;

Determine opportunities for the development

of ongoing projects, especially in neighborhoods, and
define paths for their implementation, recommending
exemplary project structures and supporting them;

Focus on improving the composition of

projects included in the programs by types of activity,
particularly on establishing modern production
networks based on high technologies in the industrial

sector;

Address the tasks of expanding participation in

foreign economic activity by providing concrete and
effective support to projects that have begun
producing export-oriented products;

Mobilize all possibilities to increase the

production of high value-added products through the
effective use and thorough processing of existing raw
materials when forming new projects for the next year;

Establish at least three processing enterprises

for raw materials in districts with a rich base of meat,
dairy, and fruit-vegetable resources but lacking a single
enterprise for their processing;

In determining the strategic direction of

industrial policy in the regions, focus first on
eliminating industries in technically and technologically
underdeveloped regions, and secondly, on equipping
enterprises with modern, cutting-edge technological
advancements.

In 2022, a comprehensive set of measures will be
implemented

to

develop

the

engineering,

communication, production, and service infrastructure,
as well as to construct, reconstruct, and repair social
facilities in the Andijan region [5].

As part of this decision, the Ministry of Economy and
Finance plans to allocate funds from the republican
budget.

The financing of projects implemented through the
local budget of the Andijan regional administration is
expected to be carried out within the specified time
frame.

CONCLUSION

In conclusion, for ensuring regional stability and
economic

growth,

achieving

deep

structural

transformations in the regions, and reaching the
forecasted regional targets, it is possible to effectively
utilize the industrial potential of the regions and
achieve the set goals more rapidly. However, this can
be fully realized only if the above-mentioned measures
are implemented comprehensively.

REFERENCES

O‘zbekiston Respublikasi

Prezidentining 2017 yil 7

fevralda

“O‘zbekiston

Respublikasini

yanada

rivojlantirish

bo‘yicha

Harakatlar

strategiyasi

to‘g‘risida”gi PF

-4947-

sonli Farmoni. O‘zbekiston

Respublikasi qonun hujjatlari to‘plami. www.lex.uz.

O‘zbekiston Respublikasi Vazirlar

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iyuldagi “2019

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tadbirlar to‘g‘risida”gi 622

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apreldagi “2022

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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)

viloyati

hududlarini

kompleks

ijtimoiy-iqtisodiy

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yaxshilashga

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References

O‘zbekiston Respublikasi Prezidentining 2017 yil 7 fevralda “O‘zbekiston Respublikasini yanada rivojlantirish bo‘yicha Harakatlar strategiyasi to‘g‘risida”gi PF-4947-sonli Farmoni. O‘zbekiston Respublikasi qonun hujjatlari to‘plami. www.lex.uz.

O‘zbekiston Respublikasi Vazirlar Mahkamasining 2019-yil 24-iyuldagi “2019-2022-yillarda Andijon viloyatining sanoat salohiyatini rivojlantirish bo‘yicha qo‘shimcha chora-tadbirlar to‘g‘risida”gi 622 - sonli; 2022-yil 21- apreldagi “2022-2026- yillarda Andijon viloyati hududlarini kompleks ijtimoiy-iqtisodiy rivojlantirish va aholi turmush darajasini yanada yaxshilashga doir qo‘shimcha chora-tadbirlar to‘g‘risida”gi 204-son Qarorlari

Soliyev A. Hududiy majmualarning nazariy asoslari. O‘quv qo‘llanma. “Молия”, Toshkent, 2019.

Шодмонов Ш.Ш., Маматов А. Иқтисодиёт назарияси: Дарслик.. - Т.: IQTISOD-MOLIYA, 2022. - 127 б.

Maludakxan S., Akhmadkhonovna S. G. Distinctive Features of the Development of Industrial Production //Telematique. – 2023. – Т. 22. – №. 01. – С. 663-667.

Sattikulova G. A., kizi Abdugoipova M. A Ways to Effectively Use Labor Resources //Telematique. – 2023. – Т. 22. – №. 01. – С. 1699 - 1704.O’zbekiston hududlarining yillik statistik to’plami. O’zbekiston Respublikasi Prezidenti huzuridagi Statistika agentligining rasmiy statistik to’plami. Toshkent. 2024.

Akhmadkhanovna S. G. Factors influencing the development of industry in andizhan region //EPRA International Journal of Environmental Economics, Commerce and Educational Management (ECEM). – 2024. – Т. 11. – №. 5. – С. 137-141.