Capital, technology, training, policy support needed to advance light engineering industry: Experts
They also stressed the need to remove some policy anomalies, setting up a specialised economic zone, easy access to finance, technology up-gradation and skill development for the growth of the sector.
There is an urgent need for taking measures to understand the global demand and strengthen stakeholder's capacity to capitalise the potential of Bangladesh's light engineering sector, experts said at a roundtable on Tuesday (30 January).
They also stressed the need to remove some policy anomalies, setting up a specialised economic zone, easy access to finance, technology up-gradation and skill development for the growth of the sector.
Experts came up with the observations at a roundtable discussion titled "Unleashing the export potential of light engineering in Bangladesh", organised by Development Research Network at its office in the capital's Mohammadpur area.
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Speaking on the occasion, Bangladesh Engineering Industry Owners Association (BEIOA) President Abdur Razzaque said, "Bangladesh does not account for even 1% of the $8 trillion dollar light engineering global market.
"A special economic zone is required for domestic companies in the light engineering sector to gain a foothold in this market. These are what Taiwan did and Thailand is doing now. It is also happening in Howrah, West Bengal, India. Earlier it happened in Gujarat."
Razzaque also said the industry needs capital, modern technology, training, policy support, and planned economic zones.
"These five must come together," he said.
Additional Secretary to the Ministry of Commerce Abdur Rahim Khan presented a keynote paper at the roundtable jointly moderated by Executive Director of Dnet M Shahadat Hossain and its Senior Research Fellow Dr Muhammad Shariat Ullah.
He said the country's light engineer sector now needs a meaningful push in line with the changes in global demand.
"Developed countries are now shifting towards hi-tech manufacturing instead of light engineering. The tendency is creating opportunities for countries like Bangladesh," he also said.
Small and Cottage Industries of Bangladesh President Mirza Nurul Ghani Shovon said a time-bound action plan is required for the development of the light engineering sector.
"How to increase exports with the needs of our country will be in this action plan," he said.
Mirza Nurul Ghani Shovon said alongside export oriented ones, local light engineering entrepreneurs should also get required government's policy support.
Bangladesh Bicycle and Parts Manufacturer and Exporters Association (BBPMEA) Secretary-General Luthful Bari said only five countries - China, the USA, India, Singapore, and Japan - import light engineering products worth $2.51 trillion.
"If we focus, we can export products to these countries. Because they are now tending to make high tech products," he said.
According to an analysis of National Board of Revenue data presented at the event, the sector saw a fluctuating trend in the export values from fiscal year 2017- 18 to fiscal year 2019-20.
The sector saw a significant increase in fiscal year 2020-21, reaching $529 million. In the next fiscal, the value reached $795.63 million, indicating robust growth.
However, in fiscal year 2022-23, the export value decreased to $585.85 million.
