With the start of the transition to a market economy, the industrial sector experienced continuing decline throughout the 1990s, except for modest gains in 1998. The Government declared 2002 to be the year of "Domestic Industry Promotion". Mining, wool, cashmere, skins, hides, meat processing, crops and tourism industries have been determined as priority sectors. Also it has taken measures that resulted in a significant growth of almost 20 percent in the processing sector, reversing the declining trend of the past. Shortage of financial resources in the sector was main cause for such a decline of the processing sector.
So the Government has started to implement programs on "Wool", "Cashmere", "Skin and Hides". In addition the Trade and Development Bank, and Golomt Bank have issued loans to Gobi Company, Erdenet Cashmere Co.Ltd, Monnoos Company and Dornod Wool Company, leading to improvements in capacity utilization, and increased production, which has assisted in the recovery of national industry through sustainable development. For the first quarter of 2004, the total industrial output was 52.5 bin. tugrigs at the constant prices 1995, that was more by 1.3 bin. tugrigs or 2.6 percent with the same period of the previous year.
