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Khalikov T.L. assistant
«Other in networks Bugalteriya account and audit» department
Samarkand economy and service Institute
IMPROVING DIVERSIFICATION METHODS IN THE EXPORT OF COTTON-TEXTILE CLUSTER PRODUCTS
Abstract. In this article submitted analysis of the state of the country's textile industry, production volumes and indicators exports by country, as well as proposals for the further development of the textile industry.
Keywords: GDP, export volume, diversification, raw materials, production cost, competitiveness, value added, cluster, knitwear, finished products.
Today, the textile industry is considered the main engine of the economy of our country, and the share of the textile industry in the economic development of all regions of the republic is also considered important. After the transformation of the cotton industry, the stage of deep processing of cotton raw materials is carried out by cotton-textile clusters. Annually, our republic produces an average of 3.0 million tons of raw cotton, today all of them are carefully processed by cotton-textile clusters, the production of competitive value-added products is being gradually implemented.
In this regard, on the basis of many decrees and decisions regarding the textile industry, the leadership of our country, the strategic direction for the development of the textile industry is the production of competitive products for world markets through the application of integration and diversification methods.
When developing cotton-textile clusters, it is important to use diversification methods. Based on diversification, increasing the stability in the competition of industrial goods, changing types of products, using a synergistic effect, finding sales outlets to increase the profits of an enterprise, uneven economic development (development of some firms and bankruptcy of others) are based on reducing financial risks.
The word "diversification" (from the Latin " diversificatio " change, different) refers to the expansion of the scope and type of products manufactured by enterprises (associations), renewal and acquisition of new markets for products. As a result of diversification, diversified, but always technologically unrelated complexes are emerging that are engaged in the production, maintenance and development of various goods.
In the countries of the world, the process of diversification began to develop in the mid-1950s. Initially, in the USA, Japan, and Western European countries, diversification occurs in the areas of industry, transport, construction,
and finance. Therefore, the nature of diversification is determined by the socioeconomic factors of these countries, as well as general factors related to other countries.
When diversifying, firms, especially monopoly firms, take the form of diversification. First of all, they begin to work in high-yield, fast-growing industries. Along with the production of products, companies also begin to procure the necessary raw materials for this product. Funds are saved in low income sectors and spent in high income sectors. For example, US concerns are engaged in services, construction, land sales, trade information, equipment rental [1].
The definition of the word diversification is shown differently by foreign scientists in theory and practice.
According to A. M. Rumyantseva, diversification is determined in connection with the expansion of the range of products manufactured by enterprises or associations of enterprises, the use of enterprise funds to create new types of products, penetration into other industries. In the political and economic vocabulary, diversification is defined as the penetration of large companies into industries that are not functionally related to the main industry of their direct production connection or activity [2].
R. Pitts and H. Hopkins adhere to a slightly different aspect in their definition and define diversification as running several types of business at the same time [4]. They define the following as a way to expand the core business to reduce development or diversification risk:
- includes all investments, except those directly aimed at maintaining the competitiveness of the existing business;
- new products, services, market segments and foreign markets can be accepted as investments;
- internal development, product acquisition, joint ventures and licensing agreements can be achieved in several ways.
According to M. Porter, diversification is a change (expansion or reduction) of business associations in the network and an increase in the range of products [5].
Based on the theories and opinions of the above scientists, we can conclude that diversification is not the exit of a particular organization to another area after the end of its activities, but it can be understood as a process associated with market segments, which will be carried out in the future development of the production of an existing organization.
The textile industry of Uzbekistan is considered one of the leading industries that are developing. Every year in our country, many business entities begin their activities in this area, which serves to develop the industry. Today, more than 7000 thousand representatives of small and medium-sized businesses work in the textile industry of Uzbekistan, and the number of workers and employees employed in this industry is 378 thousand [6].
The total volume of exports of cotton and textile clusters of Uzbekistan is increasing every year. According to the data, the total exports of cluster and textile products in 2021 amounted to about $3.0 billion, and the growth rate compared to 2020 was 150 percent.
According to paragraph 1 of the Decree of the President of the Republic of Uzbekistan No. UP-4453 dated September 16, 2019 "On measures to stimulate the further development of light industry and the production of finished products" based on the deep processing of raw materials, it has a high added value based on the needs of the market for establishing the production of textile and clothing - knitted products and formed the target parameters of export activities for 2020-2025 [7].
According to the association " Uztokamiliksanoat ", the total volume of exports of textile products in 2026 is expected to reach $7.6 billion. In this regard, the achievement of the desired results will be the attraction of foreign direct investment, the launch of new production facilities as a result of the timely modernization of enterprises, the introduction of a cluster model for the development of the industry based on integration and innovation.
Currently, cluster and textile enterprises are showing their importance in the development of the country's economy and improving the lifestyle of our country. At the same time, the economic reforms carried out in the cluster and textile enterprises are aimed not only at entrepreneurs, but also at expanding the range of ready-made garments and knitwear produced on the basis of the name of the Uzbek brand of the country, and the flow of local and foreign direct investment to remote areas of our country, as a result, an increase in the industrial share of the region, as well as the lifestyle and employment of the population of the region will lead to the provision of blind sellers and, finally, regional export indicators.
It is desirable to increase the economic orientation of cotton-textile clusters and indicators of competitiveness in foreign markets for finished products, increase the export performance of manufacturing enterprises from USD 7 billion by the end of 2026, and ensure the practical implementation of the following proposals when entering the markets of the EU countries:
- As a result of increasing the issuance of licenses by local logistics companies, Izhozat, which allows them to enter the territory of European countries, as well as the development of measures to further simplify and increase the transparency of their work mechanism, will be created for local freight companies for the permanent transportation of export cargo.
- In order to ensure the execution of the export contract within the specified timeframe, raw materials and components brought from China to local textile enterprises will arrive at their destinations in a short time, based on a study of the amount of cargo intended for Uzbek consignees at the railway stations of China and other (transit) countries.
- Solve the issue of reducing or completely abolishing the state duty rates (up to 30 percent), which are applied in practice when importing finished garments and knitwear from our country into Tajikistan.
- Local exporting enterprises such as BCI, SEDEX, OEKO TEX, GOTS, Green Button, WRAP, Social Accountability 8000, Nature Textile, Soil Association and BSCI, as a result of establishing a wide promotion of the implementation of certificates, developed a simplified system based on the One Stop Shop criteria.
In the Single Window system, enterprises are assisted in obtaining certificates from the European Union and other countries. The effective use of the GSP+ program will be achieved as a result of the penetration of the country's finished garments and knitwear products into European markets.
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