Experts stress strong backward linkages for industrial, agri dev

Bangladesh risks falling behind in industrial and agricultural development unless it strengthens backward linkages and embraces automation, experts have warned.

Commerce Adviser Sheikh Bashiruddin said the country has lost its pre-independence manufacturing diversity due to an "anti-manufacturing bias." 

"We now produce hundreds of thousands of motorcycles annually, but cannot manufacture a single engine. While agriculture worldwide relies on drones and robots, we are still dependent on power tillers and combine harvesters," he said. 

He stressed that Bangladesh needs a clear industrial model, standardisation, and short-term sacrifices to enhance industrial capacity.

Speaking at the seminar "Global Best Practices of Automobiles and Agro-Machinery Industries and How Bangladesh Could Utilise Its Potentials" at Edison Prime, Tejgaon, Bashiruddin's concerns were echoed by BCI President Anwar-ul Alam Chowdhury, who highlighted the critical role of backward linkages. 

"To become self-sufficient in food, we must increase backward linkage capacity. This is the sector that can create real value addition," he said.

Chowdhury outlined the country's unemployment challenge, noting that over 2.6 million people remain jobless, while the RMG sector, employing 3.5 million, can no longer generate new opportunities. 

"As a low-wage sector, garments have limited potential. Our focus must shift to manufacturing, where light engineering represents both the future and a lifeline," he added.

He also emphasised Bangladesh's economic structure: "The economy currently relies on three pillars: agriculture, RMG, and remittances, with a GDP of $465 billion. RMG alone contributes 83% of exports, while other sectors remain underdeveloped." 

Highlighting global opportunities, he said, "The farm machinery market is projected to grow from $210 billion in 2024 to $329 billion by 2030. The auto spare parts market could expand from $350 billion to $750 billion, and the automobile industry from $2.4 trillion to $4.7 trillion. Bangladesh must position itself to capture these emerging markets."

On domestic manufacturing, Chowdhury added, "The light engineering market in Bangladesh is valued at $12 billion, with almost 50% feasible for local production. Over the past decade, garments and textiles have imported $5.7 billion and $4.6 billion in capital machinery, respectively, entirely import-dependent. 

"To help these sectors grow, coordinated action from both government and private stakeholders is essential. Identifying problems and creating opportunities together will benefit future generations."

BIDA Executive Member Shah Mohammad Mahboob said a proposal to establish an economic zone for agricultural products is under review, while Runner Automobiles PLC Chairman Hafizur Rahman Khan stressed the need for policies to support "Made in Bangladesh" products domestically and for export.

Hossein Zillur Rahman, Executive Chairman of the Power and Participation Research Centre (PPRC), warned that remittances and garments can no longer drive growth. "The new engines of the economy must be agriculture, SMEs, and technology-driven businesses. Bangladesh urgently needs a national economic vision built on consensus, beyond political differences or LDC status," he said.