Light Engineering Industry: Forging the Path for a Better Economy
Bangladesh is witnessing promising growth of Light Engineering Industry (LEI) which has contributed 2% of overall GDP and has the potential to further boost the country’s overall export diversity. Our country has become a major player in the global apparels industry but export performance of Light Engineering Industry (LEI) has decreased by 14% in 2019-20 in comparison to the previous year. However, the government has taken some initiatives like deciding to set up 10 dedicated light engineering parks which will surely help this sector rebound in terms of export performance.
This industry which provides backward linkage of raw material support to almost all manufacturing sectors, continues to grow each year and produces a diverse range of products. Initially, light engineering enterprises emerged from the Dholaikhal and Jinjira areas in Dhaka. However, with time, different types of light engineering enterprises have spread all across the country.
Despite being an important sector in the country, the LEI continues to face a plethora of challenges including shortage of workers, lack of quality raw materials, modern technologies, access to finance, industrial facilities and policy support, etc. The LEI can help poverty alleviation by generating employment and increasing contribution to the GDP. Therefore, timely implementation and review of government policies for this sector should be carried out to help this sector overcome its major obstacles and grow to its optimum level.
RIFAT ISHTIAQ KHAN
IDLC Finance Ltd.