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NewsID : 258130 ‫‫Thursday‬‬ 13:05 2025/11/20

Three Pillars of Resilience in Iran’s Industrial Economy

A recent report by the Monetary and Banking Research Institute shows that while many industrial sectors have faced a decline in production, the food, rubber and plastics, and pharmaceutical industries have been the main drivers of the country’s industrial growth.

Nournews: Analyses by the Monetary and Banking Research Institute of the 12-month period ending in August indicate that the country’s industrial structure has experienced a heterogeneous trend. While some sectors—such as chemicals, machinery, non-metallic minerals, and home appliances—have seen significant production declines, three key groups have managed to act as the driving engines of the industrial sector.

The food industry leads the list with 6.5% growth. Unlike the stagnation in some sectors, this growth reflects stable demand, improved supply chains, and effective raw material management. Following that, the rubber and plastics sector ranks second with 4.2% growth. This increase has occurred despite many downstream industries still facing energy constraints and fluctuations in raw material costs. Continued growth in this sector suggests that both domestic and export markets for plastic products—particularly in packaging—still have significant capacity.

In third place, the pharmaceutical industry has grown by 3.5%. Increased production capacity, development of new lines, and better access to active ingredients have allowed the pharmaceutical sector to maintain its position as one of the most resilient manufacturing industries. This sector not only meets domestic demand but has also gained competitive export potential in certain areas.

However, the opposite side of these successes is evident in some sectors. Machinery production has dropped by over 12%, non-metallic minerals by 7.8%, wood industries by 7.5%, and home appliances by more than 5%, reflecting structural pressures, reduced purchasing power, and investment limitations. The gap between leading and lagging industries sends a clear warning about the need for targeted policies, support for key industries, and a redesign of production incentives.

Overall, the report’s data confirm that although parts of the country’s industry continue to face serious challenges, the presence of the food, plastics, and pharmaceutical sectors as growth drivers offers a promising outlook for the second half of the year—provided that sustainable policies in energy, raw materials, and financing are pursued.

 

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