Iran’s garment output rose 20 per cent from March to December 2019. After the ban imposed on imports of clothing, domestic units are taking all endeavors to boost the quality and quantity of their products. Domestic units supply nearly 80 per cent of the requirement for clothing inside the country. Improving and boosting domestic production has been one of the major strategies that Iran has been following in the past two years. Providing the required working capital for production units and offering them facilities is one of the major measures being pursued to support such units.

The contracts and agreements signed with domestic producers have resulted in a reduction of foreign currency expenditure. Nine expert desks have been established for the promotion of domestic production in various areas including automotives, motorcycles, petrochemicals, and telecommunications, as well as copper and steel industries, and by the end of the current year seven more such desks will be held.

There is a big opportunity for existing textile and apparel plants to expand and for new entrants to set up shop. In addition the Iranian currency’s depreciation has provided an additional boon by cutting imports and smuggling, which are the nagging problem of the industry. Smuggled clothing costs Iran and its apparel producers heavily in lost revenues.