Light Engineering

The light engineering sector in Bangladesh is a vital enabler of growth and innovation across industries such as automobiles, agriculture, construction, and consumer goods, contributing approximately 3% to the national GDP. With a robust ecosystem of over 80,000 SMEs and a skilled workforce exceeding 1 million, the sector manufactures more than 3,800 types of machinery, spares, and accessories, supplying nearly half of Bangladesh’s USD 8.2 billion domestic demand. Product range spans automobile and railway spares, agricultural machinery, marine components, electrical goods, and industrial equipment for sectors such as textiles, plastics, food processing, and chemicals. Recognized as a priority sector for export diversification, light engineering has witnessed rapid growth – expanding at a 22.27% CAGR between 2017 and 2022, with industry estimates suggesting it could be as high as 28.3%, driven by rising demand across sub-segments.

Bangladesh’s light engineering exports are reaching key international markets including Japan, the Netherlands, South Korea, Taiwan, the United Kingdom, Thailand, and India. With competitive advantages such as low production costs, duty-free access to major economies, and a supportive policy regime offering cash incentives, tax holidays, and infrastructure support, the sector is well-positioned to become a major export powerhouse. The industry targets USD 12.56 billion in export revenues by 2030, propelled by a rapidly expanding domestic base and increasing global demand.