There have been promising developments in the Iranian clothing industry over the last two years. The quality of raw materials, textiles, to be specific, has improved over the years as designers have grown conscious about fashion trends. Iranian apparel producers today are able to produce and offer clothing for different tastes in various styles.

Currently Iranian apparel production meets less than 30 per cent of domestic demand but Iranian producers have the capacity to increase their share to 70 per cent. On an average, an Iranian buys two items of clothing a year.

The Iranian textile industry has the highest job creation potential after the oil industry. At least 7,50,000 people are directly involved in the apparel industry. However, the huge volume of foreign clothes smuggled into the country has had a detrimental effect on domestic producers. The abundance of foreign brands, which flaunt cheaper price tags, has eroded the competitiveness of domestic producers.

Garment manufacturing facilities in Iran are outdated due to the inability to import latest equipment because of different reasons, including lack of financial resources and years of international sanctions imposed on Iranian industries. Much of the equipment used in this industry is over 40 years old. Renovating the equipment used in the apparel industry and technology transfer are top priorities.