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3DEVELOPMENT OF COMPETITIVENESS BASED ON LOCALIZATION
OF PRODUCTION
Suyarov Hazratqul Usmonkulovich
Assistant of SamIES Rustamova Nasiba Arslonovna
Student of SamIES
Abstract: The article outlines the existing problems and approaches to further development of domestic industry, expansion of intra-sectoral and inter-sectoral cooperation, increasing the volume of products made from local raw materials and their competitiveness in domestic and foreign markets, meeting world standards, export strategies, etc. mentioned
Keywords: domestic and foreign market; product competitiveness, local raw materials; marketing research; export of products; market research.
In the economic reforms carried out in Uzbekistan, the policy of filling the domestic market with local goods and exporting goods to the world market is also given priority. For this purpose, the financing of investments directed to the regions and sectors of the country's economy, first of all, the development of the agro-industrial complex, which serves to improve the food supply of the population, the rapid development of the priority sectors of the industry, in particular the fuel and energy complex, the establishment of new capacities in the various sectors of the economy, updating existing enterprises, reducing the dependence of the republic on imports, strengthening the export potential of the republic, increasing the competitiveness of products, increasing the share of machinery and chemical industry products in exports, switching from the export of raw materials to the export of finished products, the development of small and private business, it is being spent on the restoration of ancient crafts and traditional professions, participation in the development of the Central Asian market, creation of economic and organizational conditions for the cooperation of enterprises in the region, and the creation of mutually beneficial projects in cooperation.
After the independence of Uzbekistan, during the first ten years of economic development, one of the main priorities was to effectively solve the problems of the republic's economic transitional reforms based on the localization of production.
Accordingly, on September 5, 2000, the Cabinet of Ministers of the Republic of Uzbekistan adopted the "Program for localization of production of goods and materials based on local raw materials". The main goal and mission of this program is to further
develop the local industry, expand internal and inter-sectoral cooperation, increase the volume of products produced from local raw materials and make them competitive in the domestic and foreign markets, meet world standards, and aimed at reducing imports of targeted products, as well as creating new jobs and saving foreign exchange.
The effective implementation of the localization program will serve to produce exportable products in Uzbekistan that are not inferior to foreign products, provide employment to the population, improve the infrastructure of the regions, further accelerate industrial development, and reduce prices. The expansion of the number of enterprises producing import-substituting products in our country is directly related to the favorable business environment created in our country. As a result, the variety of convenient, cost-effective, high-quality and cheap products under the label "Made in Uzbekistan" is expanding in the markets of our country.
It is planned to provide a number of benefits and reliefs to business entities operating on the basis of localization of large-scale production carried out in the republic. Including:
providing a guarantee for 50% of the loan attracted by the state fund to support the development of entrepreneurship for the implementation of the project on the production of products to be localized and reimbursement of the interest rates of commercial banks' loans in the established order up to 5%;
if there are three or more participants - local manufacturers, state procurement is carried out among local manufacturers according to the customer's choice;
the possibility of applying a price preference of up to 20% compared to the products of local producers when purchasing the products of certain sectors by the state;
The Export Promotion Agency under the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan provides compensation to exporters of certain types of products to cover interest costs on pre-export loans from commercial banks, guarantees on loans from commercial banks, up to 50% of the cost of transportation by rail. to provide subsidies to cover the amount, to introduce international standardization and certification systems, to provide financial support for issues related to the registration of national products in foreign countries, and to help improve the conditions of export insurance.
However, it is necessary to pay attention to the fact that there are still certain conditions that hinder the competitiveness of the products of local producers.
Taking into account that the import of raw materials takes the leading place in the export-import structure, the company's products cannot be competitive according to the price of the foreign market. Today, the enterprise is looking for ways to technologically modernize production and reduce product costs. The analysis shows
that the difficulties of enterprises in the production of competitive and high-quality products are mainly related to their import raw materials. Raw materials are mainly imported from CIS countries, technological lines and equipment are outdated, they lack spare parts, because most of them are not produced in our republic. In addition, the cases of customers' inability to pay also affect the financial situation of these enterprises.
In the conditions of today's economic reforms implemented in Uzbekistan, the policy of developing competitiveness should be directed to creating a more favorable environment for attracting investments. In this regard, the competition policy should be focused on the effective solution of regional problems based on the localization of production, taking into account local characteristics.
State support is required for the organization of production in industrial enterprises with high competitiveness, which allows for the development of the domestic market, and for achieving structural changes with the implementation of competition policy. However, sufficient success has not yet been achieved in this regard. In particular, most of the enterprises included in the government's "Localization program for the production of goods and materials based on local raw materials" have not started production of the specified products. The main reason for this is the lack of financial resources, problems in the delivery of raw materials, problems in technological rearmament, etc.
In our opinion, the following activities can play an important role in the production of import-substituting products based on local raw materials:
allocating limits for granting concessional loans based on a tender to small and private business enterprises that produce competitive products for export or import substitution based on local raw materials;
expanding the cultivation and production of these plants in the territories of our republic, taking into account that raw materials of soybean, safflower, and sunflower are brought to the republic mainly from abroad for enterprises producing oil products;
to promote the needs, problems and opportunities of enterprises that have started production of products based on local raw materials in advertising networks and mass media, and to ensure that it has a regular direction.
Today, the problem of the quality of goods produced in our country remains acute. In such conditions, it is worth noting that local enterprises cannot compete even in the domestic market itself. The domestic market continues to be "occupied" by foreign goods. Of course, in this regard, special "protection" measures are being taken in the country. However, in our opinion, without adequate market research on competition, the solution to these problems will continue to be ineffective. In this case,
the competitiveness of the products manufactured by our enterprises will remain at a low level.
References
1. O'zbekiston Respublikasi Vazirlar Mahkamasining 2000 yil 5 sentyabrdagi "Mahalliy xom ashyo negizida buyumlar va materiallar ishlab chiqarishni mahalliylashtirish dasturi"
2. O'zbekiston Respublikasi Vazirlar Mahkamasining 2020 yil 10 martdagi 136-sonli Qarori bilan tasdiqlangan "2020-2021 yillarda ichki va tashqi bozorlarda xaridorgir mahsulotlarni ishlab chiqarishni mahalliylashtirish Dasturi to'g'risida"
3. Kurpayanidi K.I. Nekotoro'e voproso' konkurentno'x preimuhestv predpriyatiy malogo biznesa // Aktualno'e problemo' gumanitarno'x i estestvenno'x nauk. - 2013. - №2.
