Iran’s most important industries are those associated with the extraction and processing of oil and gas. Iran’s manufacturing output was reduced during the 1978–79 Revolution, but the 1980–88 war with Iraq had the indirect consequence of increasing industrial production.
In the 1990s, low private investment levels hindered growth, although government expenditures based on revenues from high world oil prices stimulated public investment and directly stimulated consumer demand and the petrochemicals industry. The petrochemicals industry has grown rapidly in the early 2000s; the Fourth Economic Development Plan (2005–10) calls for a major expansion of annual petrochemical output, from 9 million tons in 2001 to 27 million tons by 2015. The steel industry, centered in Ahvaz, Esfahan, and Mobarakeh, also has grown rapidly since 1990.
The output goal for 2004 was 8.5 million tons. Automobile manufacture has benefited from licensing agreements with European and Asian manufacturers. In 2002, the largest plant, Iran Khodro, built about 260,000 units, and several smaller facilities produced about 240,000 vehicles. Processing of agricultural products also is an important industry and is dominated by domestic private firms. Among the major subsectors are grain processing, fruit, and vegetable canning.
The textile industry, based on domestic cotton and wool, employed about 400,000 people in 2000. The construction industry has grown rapidly since 2000 because of government investment in infrastructure projects and increased demand for private housing. Throughout history, Iranians have been involved in handicraft activities, producing a variety of products, most notably carpets.
petroleum, petrochemicals, gas, fertilizer, caustic soda, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), ferrous and nonferrous metal fabrication, armaments
Industrial production growth rate: 3% (2017 EST.) Country comparison to the world: 103
Top five Iranian Industries in Attracting Investment
The Ministry of Industries, Mining and Trade has released a report, listing top Iranian industries in attracting investments. The report, surveying statistics over the first 10 months of the current Iranian year (March 21, 2017-Jan. 20), also details the number of industrial permits issued during the period as well as the number of jobs created.
A total of 224 trillion rails ($4.64 billion) worth of investments were attracted to different industrial sectors during the 10 months.
Over the period, 4,637 operation permits were issued for industrial project and about 77,370 jobs were created.
The five most popular industrial areas to attract the highest amount of investments are:
base metals production
excavation of ferrous ores
production of chemicals
production of other non-ferrous ores
foodstuff and drinkables
Iran Industrial Production
Industrial Production in Iran decreased 0.50 percent in the third quarter of 2018 over the same quarter in the previous year. Industrial Production in Iran averaged 7.94 percent from 1975 until 2018, reaching an all-time high of 102.50 percent in the second quarter of 1980 and a record low of -61.20 percent in the second quarter of 1979.