TBM Report
The Bangladesh Engineering Industry Owners Association (BEIA) has called for policy reforms to unlock the “tremendous potential” of the country’s light engineering sector in the international export market.
At a press conference held at Dhaka Reporters Unity on Saturday (February 1) BEIA President Abdur Razzak stressed that this strategic industry – which currently meets about half of the country’s domestic demand, around $8.2 billion, is ripe for global expansion if the government addresses key hurdles related to raw material tariffs and financial accessibility.
The sector currently serves as a vital backbone for the country’s industrial landscape, providing essential backward linkages to agriculture, textiles, automobiles and power.
Employing over 300,000 skilled workers in around 50,000 small and medium-sized enterprises, light engineering contributes about 3% to the national GDP.
Although local manufacturers now produce 3,800 types of machinery and replacement parts, industry leaders noted that there remains an overreliance on imported equipment, indicating a significant opportunity for domestic growth and import substitution.
To become a global competitor with countries like China, India and Vietnam, organization leaders proposed a seven-point recommendation plan.
Key among these are the establishment of compliance-ready light engineering zones, government-funded research for high-value innovations and reduction of tariffs on raw materials. In addition, the association stressed the need for technology transfer, simplified patent registration to protect local designs and provision of cash incentives and easy-term bank loans for export-oriented companies to ensure long-term sustainability.
