We must diversify our products to boost exports
Diversifying Bangladesh’s export basket has been a high-priority policy objective and a much-talked-about subject for many years.
As the country prepares to graduate from the least developed country (LDC) status in 2026, accelerating export diversification initiatives and strengthening its export competitiveness have become urgent needs.
Emphasis has also to be laid to diversify export products beyond ready-made garments (RMG) into higher-value items like electronics, medicines, and pharmaceuticals, and to explore non-traditional markets.
While the RMG industry will continue to be our most important export sector, given the pace at which the world is changing, it is imperative that Bangladesh takes the issue of export diversification seriously.
This is a potential threat that should not be overlooked, especially with our potential graduation next year from the LDC that would see us losing many perks afforded to LDCs.
To that end, we applaud our nascent semiconductor industry for daring to dream bigger.
Experts and industry leaders have made these remarks at the recent inaugural ceremony of an event titled “Road to Made in Bangladesh and Agro Machinery Fair 2025” held in the capital.
They call for facilitating more local and foreign investments, citing that appropriate policy support is essential for reducing reliance on imports.
Although Bangladesh has immense potential in the light engineering, agro-machinery, and automobile sectors, its trade basket remains heavily concentrated only on the RMG.
Event sources said development of backward linkages in agricultural machinery, automobiles, and light engineering will help ensure sustainable growth and diversify our export base.
According to Policy Exchange of Bangladesh (PEB), the country’s light engineering sector has the potential to generate $12.56 billion in export earnings by 2030.
It is also home to about 80,000 micro, small, and medium light engineering units, with a domestic market valued at around $8 billion and an annual growth rate of nearly 28 percent.
Therefore, policymakers in the country can consider the potential of these sectors to urgently diversify the range of Bangladesh’s exports.
What must be understood though is that our economic resilience depends on diversifying our export basket– be it semiconductors or pharmaceuticals, IT services or agro-processing.
As such, it could be a test to see if we are ready to evolve and have the ambition to finally begin to write a new chapter in our export story– one that is no longer dependent but dynamic.
We must increase our exports to reduce deficits and expand our economy, thus creating more jobs for our people.
