Industrial policy on cards to increase GDP contribution

The government is working towards formulating the National Industrial Policy 2021, aiming to increase the industrial sector's contribution to the GDP by 5% to take it to 40%. 

To achieve this goal, the government is giving utmost importance to facilitating businesses in the private sector and attracting foreign investment in preparing the new industrial policy, said Md Salim Ullah, senior assistant secretary (Policy) of the Ministry of Industries, at a webinar on Sunday. 

He presented the keynote paper at the webinar titled "Proposed National Industrial Policy: Private Sectors' Expectations," organised by the Dhaka Chamber of Commerce and Industry.

Md Salim Ullah said according to the Bangladesh Economic Review 2020, the industrial sector's contribution to GDP is around 35%, the service sector's contribution is around 51% and the agriculture sector's contribution is around 13%. 

He said the government is giving the highest importance to five issues in the new industrial policy. They are formulating the policy to prepare a plan for private sector-based industrialisation. 

They are also giving importance to increasing government cooperation in private enterprise expansion in production and market management. 

The authorities are also emphasising industrial efficiency and productivity for achieving growth and making arrangements for government supervision over the matter, said Md Salim Ullah. 

They are also developing the policy to create an environment to attract foreign investment by improving the ease of doing business index.

The policymakers are preparing the plan by taking into account the experiences of stakeholders and experts, said Md Salim Ullah. 

At the event, DCCI President Rizwan Rahman called for revising the existing definition of the micro, small and medium enterprises (MSME) to cottage, micro, small and medium enterprises (CMSME) for the proper development of these sectors. He also urged the authorities to give importance to financial and policy support for these entrepreneurs.

He said if needed, the authorities should follow Vietnam's industrial policy, and as well focus on research and development, innovation and the advancement of the eCommerce industry.

Mainuddin Monem, managing director of Abdul Monem Limited, said technology should be given importance in the new industrialisation policy, through which competitiveness in the international market can be achieved. To expedite land acquisition in the economic zone, the existing land laws need to be amended and completely reformed, and land prices should be reduced to a reasonable rate. 

He said, "Due to the investment of Honda Motor Company in the country, 13 out of the 22 parts used in the production of Honda vehicles are now being produced in the country. That is our capability. So we need to ensure policy and financial support to attract foreign direct investment."

Speaking as the chief guest, Industries Minister Nurul Majid Mahmud Humayun said the industrial policy would focus on increasing employment opportunities in the public and private sectors, establishing efficient backward and forward linkage industries, expanding domestic technology through research and developing skills in the CMSME sector.

He said, "The CMSME sector is the main driving force of the economy. There is no alternative to ensuring financial and policy support for the development of this sector. In addition, the new policy will be finalised by giving priority to the consensus of the stakeholders. Therefore, the government will accept any kind of proposal."

State Minister for Industries Kamal Ahmed Majumder said the main objectives of the National Industrial Policy 2021 is to provide necessary legal and infrastructural facilities for protection of domestic industry, preservation of product quality, intellectual property management, a proper definition of SMEs, building cluster-based industrial parks, environment-friendly industrialization, and attracting domestic and foreign investment.

The new industrial policy is being created because 2016's National Industrial Policy's term will end this year. 

Along with the focus on private enterprises, the new policy is also giving importance to increase the production of alternatives to the imported products and developing industries for export-oriented products.