Muhammad Ayub Ali :
While garment exports falter, leather struggles, and agriculture slows, one sector is quietly bucking the trend. Bangladesh’s engineering industry — long seen as a supporting sector — is emerging as a new pillar of the country’s export basket.
Export Promotion Bureau (EPB) data shows engineering product exports reached $165 million in the first quarter (July–September) of the current fiscal year, a striking 45percent increase from the same period last year. September alone saw a 36percent rise, defying the global slowdown.
The light-engineering sector now comprises nearly 80,000 micro, small, and medium enterprises, fueling an $8 billion domestic market growing at 28percent annually.
Globally, Bangladesh’s presence is minimal — its $500 million exports account for just 0.01percent of the $7 trillion market.
Currently, engineering exports are concentrated in three categories: machinery, bicycles, and metal-based products such as iron and steel goods, copper wire, stainless steel components, and electrical equipment.
These products are reaching over 40 countries across Europe, North America, the Middle East, Africa, and Asia, highlighting a growing but still untapped international potential.
Policy Exchange Chairman M Masrur Riaz says coordinated policy support and investment could grow the sector to $120 billion in the next seven years.
Industry insiders add that as Europe and the US recover from the Russia-Ukraine shock, demand for industrial and electrical equipment is rising, bringing Bangladeshi exporters both new and pending orders.
In FY2024-25, engineering exports totaled $535 million, up 10percent from $486.7 million the previous year.
Bangladesh Engineering Industry Owners Association (BIIAS) President Md Abdur Razzak noted the surge reflects the completion of long-pending orders, while obstacles such as the lack of testing labs and limited access to India’s Seven Sisters markets persist.
Bicycle exports led the growth, jumping 63percent to $40 million, while electrical products raised 45percent to $52.8 million, making these sub-sectors the main drivers of export momentum.
Kamruzzaman Kamal, Marketing Director of PRAN-RFL Group, said geopolitical stability and new buyers in the US and Europe are further boosting sales.
Challenges remain, including weak infrastructure, lack of government support, and the absence of a formal testing and certification system.
“Our industry has yet to fully enter the formal economy,” Razzak emphasized. Still, the sector’s rapid growth underscores its potential as a key engine of Bangladesh’s export future.
