Uzbekistan’s textile industry continued its strong expansion in the first half of 2026, with production and exports both recording double-digit growth. According to data from Uzbekistan’s National Statistics Committee, textile production increased by 10.1% year on year between January and June 2026, while textile exports rose much faster, reaching approximately US$1.6 billion, up 24.1% from the same period a year earlier.
Large enterprises produced textile products worth around UZS 54.4 trillion (approximately US$4.57 billion) during the six-month period. The stronger growth in exports compared with production highlights the sector’s growing export orientation and suggests that Uzbek manufacturers are increasing their presence in international markets.
The country’s textile exports represented around 10.1% of total national exports during January–June. More than half of textile shipments consisted of finished products, reinforcing Uzbekistan’s efforts to move away from the export of raw and semi-processed materials toward higher-value textile and apparel manufacturing.
Finished textile products accounted for approximately 52.6% of textile exports, while yarn represented 31.1%. Knitted fabrics contributed about 9%, woven fabrics around 5%, and hosiery and carpets approximately 1% each.
The structure of exports is particularly significant because it reflects the transformation taking place across Uzbekistan’s cotton-textile value chain. The country has been working to process more of its cotton domestically, expanding capabilities from fibre and yarn production into fabrics, dyeing, knitting, garments and other finished textile products.
This strategy has been supported by the development of cotton-textile clusters. Since the introduction of the cluster system in 2017, Uzbekistan has sought to build integrated value chains connecting cotton cultivation with textile manufacturing.
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Government data indicate that textile clusters processed around 4 million tonnes of raw cotton in 2025, while production and export indicators have increased substantially since the system was introduced.
Uzbekistan is also attracting significant investment into the sector. In 2025, the textile industry attracted around US$2.1 billion in foreign investment, while textile exports reached approximately US$2.5–2.6 billion. The industry employed more than 620,000 people at the end of 2025.
For 2026, the government has set ambitious targets for expanding textile production, investment and exports. Earlier plans targeted textile production of around UZS 147 trillion and exports of US$3.3 billion, alongside US$2.2 billion in new foreign investment.
Planned investments are expected to create additional capacity for synthetic and blended yarn, fabrics, garments and knitwear, as well as textile dyeing. A broader policy framework adopted in January 2026 is even more ambitious. Uzbekistan aims to raise textile and garment-knitwear production to UZS 167 trillion and exports to US$4.5 billion in 2026–2027, including US$1 billion through e-commerce. The government also plans to attract US$4.7 billion in foreign investment and establish cooperation with 40 international brands and sourcing companies.
Recent policy measures are further encouraging deeper processing. In June 2026, Uzbekistan adopted measures to strengthen the financial position of cotton-textile clusters and promote deeper processing of cotton fibre. The measures include subsidies for dyeing equipment, faster VAT refunds for eligible enterprises and the removal of export duties on certain bleached knitted fabrics until January 2027.
Market diversification is another important part of the sector’s growth. By the end of 2025, Uzbek textile products were being exported to 75 countries, with Russia, Türkiye, Belarus, Kyrgyzstan, Kazakhstan, China, Germany and the UAE among the major markets.
Uzbekistan also expanded into markets including Algeria, Angola, Greece and Kuwait, particularly with finished textile products, knitted fabrics and woven fabrics.
The export trend was already visible earlier in 2026. During January–April, Uzbekistan exported US$454.5 million worth of textile products, with finished products accounting for 50%, yarn 32%, knitted fabrics 9%, fabrics 6%, hosiery 2% and carpets 1%.
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The faster pace of export growth compared with production is therefore an important indicator of the sector’s changing structure. While a 10.1% increase in production shows continued expansion of manufacturing capacity, the 24.1% rise in export value indicates stronger international demand and potentially a greater contribution from higher-value products.
For global apparel and textile sourcing, Uzbekistan’s development is significant. Its large cotton base, integrated production clusters, expanding textile manufacturing capacity, competitive production costs and growing access to regional markets provide the foundation for a more complete fibre-to-fashion supply chain.
The government is also encouraging international certification, digitalisation, ERP systems, artificial intelligence and closer cooperation with global brands to improve competitiveness. However, the industry still faces challenges, including financing costs, rising international logistics expenses, shortages of skilled workers and the need to strengthen testing and certification infrastructure.
The government has identified these constraints and is introducing financial support, international standards and laboratory-development programmes to address them. Overall, Uzbekistan’s first-half 2026 textile performance points to a sector moving beyond its traditional cotton and yarn base.
With finished products already accounting for more than half of textile exports and export growth significantly exceeding production growth, the country is increasingly positioning itself as a value-added textile and apparel manufacturing hub rather than simply a cotton-producing economy.