Experts and industry leaders have said that Bangladesh must boost local capacity, value addition, and backward linkages in the agro-machinery, automobile, and light engineering sectors to secure long-term growth and export diversification.
Regarding the agro-machinery sector, they stated that it is critical for driving agricultural productivity and ensuring food security.
They also said that the investment and proper policy supports in the sector is also must to reduce dependency on import.
They were speaking at a sideline seminar on 鈥楻oad to Made in Bangladesh; Automobile and Agro-Machinery Fair 2025鈥� on Saturday in the capital, organized by Bangladesh Chamber of Industries, in association with Agricultural Machinery Manufacturers Association, Bangladesh, and Bangladesh Engineering Industry Owners Association.
At the seminar, M Masrur Reaz, chairman and chief executive officer at Policy Exchange Bangladesh, presented the keynote.
In his keynote, he said that local manufacturers can meet about 20 per cent of the demand of agro machinery, where 80 per cent are imported.
鈥楳oreover, in 2020, the workforce in the agricultural sector (27.4 million) was surpassed by that of the service sector (28 million), meaning a threat to food security,鈥� he added.
He also said that Bangladesh loses up to 40 per cent鈥�45 per cent of crops post-harvest due to poor handling, drying, and storage.
He also said that agri-machines could reduce seed, fertilizer, and water use through precision sowing and irrigation.
In India, agricultural mechanization stands at 47 per cent, while Bangladesh鈥檚 research and development capacity remains very low.
鈥榃e must improve research and development, promote incentives, establish labs, and reduce skill gasp to support this transformation,鈥� he added.
Regarding the automobile and light engineering, he said that local assembly accounted for less than 10 per cent of the domestic market, with imports dominating the supply chain.
鈥楿nless we mobilize our labour force, we would fail to capture any real advantage,鈥� he added.
He also said that of the 380,000 autorickshaws operating in Bangladesh, around 270,000 lack proper certification.
鈥楤y 2050, 90 per cent of vehicles would be person-oriented and the country has a huge potential in this sector,鈥� he added.
The light engineering sector holds strong opportunities not just domestically but also globally.
He also said that Bangladesh has potential to export engineering products worth $12.5 billion by the next five years. In last financial yaer, the earnings were over $535 million.
The domestic market of the light engineering is over $8 billion, with a 28.3 per cent CAGR. Currently, Bangladesh has about 80,000 light engineering firms, he added.聽聽
At his speech as chief guest, Industries Adviser Adilur Rahman Khan said that the聽government is committed to making聽鈥淢ade in Bangladesh鈥澛燼 globally recognized symbol of quality.
鈥楾o achieve this, we must focus on the development of manufacturing industries, technology transfer, research and innovation, and the cr eation of a skilled workforce,鈥� he added.
He also said that among the priority sectors,聽automobiles, agro-machinery, and light engineering聽stand out as key drivers of manufacturing growth, export diversification, and employment generation.
鈥楢gro-mechanization is strengthening national food security, while the automobile industry is modernizing transportation and energizing the economy,鈥� he added.
The government has already taken effective measures to support these sectors through policy incentives, tax benefits, and infrastructure development, he added.
Bangladesh Chamber of Industries president Anwar Ul Alam Chowdhury Parvez said that the market of automobile is big and Bangladesh must capture it.
鈥楤angladesh must focus on diversifying its economy beyond ready-made garments as it prepares for graduation from the least developed country,鈥� he added.
鈥極ur economy relies heavily on three sectors鈥攔emittances, RMG, and agriculture, where there is little room for significant further growth in the RMG sector, and now, we must explore alternative sectors,鈥� he added.
He also said that although money laundering has been largely curbed, the private sector growth remains sluggish, along with a rapid rise in unemployment.
聽鈥楾he RMG cannot sustain our economic ambitions solely, the future lies in manufacturing鈥攑articularly in the light engineering sector,鈥� he added.
He stressed the need for robust policy support and government incentives.
鈥楬onda reported that production costs in Bangladesh are 10 per cent higher than in competitor markets. If we can reduce this gap and grow the sector, we can ensure value addition, job creation, and long-term sustainability.鈥� He added.
Industry-academia collaboration is crucial in the age of AI and automation, he added, calling for the capacity expansion in automobile and agro-machinery to secure economic sustainability.
Hafizur Rahman Khan, President of the Bangladesh Automobiles Assemblers and Manufacturers Association, emphasized the need to identify sectoral challenges and address them through B2B meetings.
鈥楨ven a 2 per cent increase in local value addition within a year would have a big impact,鈥� he said, urging joint efforts from BIDA, NBR, universities, think tanks, and private entrepreneurs to establish import-substitution industries and create jobs.
M Abu Eusuf, executive director of Research and Policy Integration for Development, said that Bangladesh remains lagging in export and economic diversification, even as RMG thrives due to strong compliance.
鈥楤ackward linkage development could reduce import dependency, and we also need FDI inflow, policy support, and improved ease of doing business to tap our vibrant domestic market,鈥� he added.
Alimul Ehsan Chowdhury, president of Association Agricultural Machinery Manufacturers, Bangladesh, said food security is heavily dependent on agro-machinery.
He urged easier access to the Bangladesh Bank鈥檚 SME refinancing scheme, which many manufacturers struggle to access.
鈥楬igh VAT, tax, and TDS even on locally sourced raw materials are hampering growth. SMEs need dedicated slabs to sustain operations,鈥� he added.
Abdur Razzaque, president of the Bangladesh Engineering Industry Owners Association, called for an action committee and regular policy follow-ups.
鈥楩inance, land, and policy support remain half-done despite a five-year industry policy,鈥� he added, urging for a dedicated cell for light engineering and affordable industrial parks to attract FDI.
Officials from government agencies, business leaders, and academicians also spoke at the seminar.
A total of 38 participants from various sectors, including automobiles, agri-machinery, light engineering, banks, and universities, participated at the two-day fair.
