Stakeholders said with the right policy support and capacity building, the light engineering industry in Bangladesh could reach exports of $12.56 billion by 2030.
Speaking at the inauguration of the three-day 2nd Bangladesh Light Engineering Expo 2026, organised by the Bangladesh Engineering Industry Owners Association, Abdur Razzaque, president of BEIOA said, “With appropriate policy support, technological advancement, and increased investment, exports could reach $12.56 billion by 2030.”
He also said that the light engineering sector provides critical backward linkages to agriculture, textiles, construction, power, automobile, and household appliance industries, on Monday.
He said that Bangladesh currently has around 50,000 small and medium light engineering enterprises, employing nearly 300,000 skilled workers, with the sector contributing about 3 per cent to national GDP.
He also said that the sector meets nearly half of the country’s $8.2 billion domestic demand and produces around 3,800 types of machinery, spare parts, dies, and moulds.
However, significant reliance on imported machinery and components still remains, indicating substantial scope for expansion.
Globally, the engineering products market is estimated at around $7 trillion, yet Bangladesh’s share remains below 1 per cent. At present, exports from the light engineering sector stand at approximately $795 million.
Stakeholders further stressed the need to modernize, coordinated, strategic effort to transform Bangladesh’s light engineering sector into a more export-oriented, competitive industry, positioning it as a key driver of the country’s next phase of industrialisation.
They also said that although research and discussions on sectoral development have continued since independence, the outcomes have fallen short of expectations.
With Bangladesh set to graduate from least-developed country status and gradually lose duty-free market access, they emphasised the urgency of strengthening capacity, upgrading technology, and ensuring effective policy support for the sector.
Speaking as the chief guest, Md Abdur Rahim Khan, additional secretary and project director of the Export Competitiveness for Jobs project, said that although development issues across various sectors had long been discussed and studied, the expected outcomes had not been fully realised.
He said that globally, light engineering products play a critical role in shifting export structures, but Bangladesh has failed to capitalise on this opportunity over the past five decades.
‘Gradually, we moved from agriculture to manufacturing and became deeply involved in textiles and readymade garments. But the next step — light engineering — has not seen the kind of transition it should have,’ he said.
He also said that Bangladesh is scheduled to graduate from LDC status in November this year, after which duty-free access for Bangladeshi products would begin to phase out.
The country should have built stronger capacities by now; time has not yet fully run out, he added.
‘We still have adequate time, and we must strengthen the capacity of institutions responsible for implementing government policies, while entrepreneurs need to further activate management efficiency, innovation, and research,’ he said.
As a special guest, Hosna Ferdous Sumi, senior private sector specialist (finance, competitiveness, and investment) at the World Bank, said that under the EC4J project, the World Bank was providing a wide range of support to enhance the competitiveness of the light engineering sector.
She said, alongside export markets, the domestic market, valued at around $8 billion, also presents a significant opportunity for the sector.
‘The biggest challenge we face, both in local and international markets, is product quality and whether products are truly serving their intended purpose,’ she said.
She said that quality compliance, improving production efficiency, and reducing costs are major challenges. If these issues are addressed, light engineering products from Bangladesh would gain a strong competitive edge in international markets.
She also said that global production and growth trends are changing rapidly, making it essential to adapt to this through Internet of Things solutions, reduce rejection rates, shift to resource-efficient production, and use precision technologies.
