The proposed new National Industrial Policy – 2021 should focus on creating a vibrant private sector to enhance the country’s competitiveness in the global market after its graduation from a least developed country (LDC). Product diversification, improving skills, policy reforms, technology adoption, redefining small and medium enterprises and facilitating import substitution industry will help face the post-graduation challenges, say experts and business leaders.
Experts and business leaders, speaking at a discussion on Industrial Policy- 2021, stressed the need for coordinated efforts to implement one stop service of Bangladesh Industrial Development Authority (BIDA), create employment opportunities, establish skilled backward linkage industry, set up cluster based industrial parks, and expand domestic industry. Terming SME as the lifeline of the economy, they said the sector should get maximum facility in both fiscal and non-fiscal formats. They also laid emphasis on development of skilled human resources in the ICT sector to grab the benefits of the 4th industrial revolution. They suggested completing the work of at least 10 EZs out of planned 100 with focus on fiscal incentives, quick infrastructure development and utility connections.
According to the reports, manufacturing and service sectors are already included in the new industrial policy – 2021, but micro merchants should also be included in it. Industrial sector’s contribution to the GDP is now 35 per cent, of which, only 9 percent comes from large industries and the rest from the SMEs. The experts said the industrial policy should focus on how to increase the contribution of the industrial sector to the GDP from 35 percent to 40 percent. They said that Bangladesh could follow the example of Vietnam to prepare a comprehensive industrial policy. Research and development, innovation and e-commerce can play a vital role in the future. Also signing FTA with potential countries and enhancing trade negotiation skills are very crucial. Again, if we set up skill training for migrant workers, they will gain more capacity to contribute to the national economy.
The upgradation of Bangladesh from a least developed country to the next higher level is a good piece of news for us; but the country will have to overcome the post-LDC challenges of forging ahead in the competitive world when tax and visa-free access to international markets will go.
