Tajikistan and Russia to launch $150 million cotton industry cluster

Asia-Plus

Tajikistan, in partnership with the Russian BTK consortium, is launching the country’s largest full-cycle light industry cluster—from cotton cultivation to garment manufacturing. The ambitious $150 million project is expected to create up to 10,000 jobs and boost the country’s export potential.

The Government of Tajikistan has approved an investment agreement with BTK, outlining the implementation of the project in three phases through 2035. The first phase, running through 2028, will involve $30 million in investments. It includes the construction and modernization of factories, development of infrastructure, and cultivation of 15,000 hectares of farmland.

Investors will receive tax and legal incentives, including a simplified visa regime for foreign specialists. The project is expected to significantly increase the contribution of the textile sector to the national GDP and expand export capacity.

Following government approval, the investment agreement will be submitted to Tajikistan’s lower chamber (Majlisi Namoyandagon) of parliament for ratification.

                                                                                         

Full production cycle: from fields to finished garments

According to the project's feasibility study, total revenue is expected to reach $2.9 billion by 2035. Of that, $400 million will come from cotton production, $700 million from spinning mills, $800 million from knitwear facilities, and over $1 billion from the garment manufacturing sector.

In the first phase (2025–2027), 5,000 hectares will be developed in Vakhsh Valley and Kulob region of Khatlon province. By 2035, this area will expand to 15,000 hectares. The project will implement drip irrigation systems and energy-saving technologies. Up to 50,000 tons of raw cotton will be processed domestically each year. Over 10 years, the cotton segment alone is projected to generate more than $1.2 billion in revenue, with over 60% of products intended for export.

Spinning mills will reach an annual capacity of 50,000 tons of yarn, generating around $700 million in revenue. Up to 70% of this output will be exported.

The knitwear segment is expected to generate over $800 million in revenue, with about 65% of products going to foreign markets.

The final stage includes launching garment production lines. In 2028–2029, the production of men’s and women’s clothing will begin, with projected revenue of $15–25 million. Between 2030 and 2032, production of workwear and school uniforms will be added, with revenues of $90–110 million. By 2033–2035, the facilities will reach full operational capacity, generating up to $250 million annually. The total revenue from the garment sector is expected to exceed $1 billion by 2035, with approximately 70% of products exported.

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