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Light Engineering Sector

Light Engineering Sector 2017-05-07T07:53:49+00:00

Light Engineering Sector

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  • 40,000 light engineering workshops/enterprises operating. About one million people and innovative entrepreneurs are actively engaged
  • Annual turnover is US$ 1600 million of which Import substitute products is around US$ 200 million
  • Over 90% of light engineering industries are serving the local needs of the people.
  • 10% cash incentives for export
  • Availability of trainable labors at competitive cost
  • Declared as special development sector in its Export Policy

The burgeoning domestic market and the prospect of significant cost reductions for companies sourcing components and finished goods for international markets makes Bangladesh a compelling choice for investors.

Sector Highlights

Thriving in this sector are machinery parts and consumer items.

  • Increasingly affluent middle class creating demand for consumer durables.
  • About 40,000 small scale light engineering enterprises existing over the country.
  • Export-oriented production has experienced strong growth in past few years.
  • Currently about 10,000 types of different items are manufactured for the local industry.
  • As demand grows for engineering and electronic goods, so does demand for light engineering products.
  • Government provides cash incentive facilities to exporters of value-added light engineering products.

Industry Situation

The light engineering industry in Bangladesh continues to grow each year. This labor-intensive sector produces a diverse range of items, including import substitute machinery spares, plant machineries, small tools, toys, consumer items and paper products for the domestic market. Most of these enterprises are located in and around Dhaka metropolis. Entrepreneurs from China, Japan and Korea have taken advantage of Bangladesh’s cheap and easily trainable labor and its infrastructure facilities to manufacture products for the export market.

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