Bangladesh is steering its economic strategy toward strengthening its industrial base and fostering sustainable growth. The nation, recognized as a global textile manufacturing hub, aims to diversify its economic foundation beyond its dominant ready-made garment (RMG) sector, which accounts for over 80% of its export revenue. Recent policy efforts emphasize expanding industries such as pharmaceuticals, leather, agro-processing, and information technology to create a more resilient economy.
The government is promoting private sector investment through reforms aimed at improving the business environment. These include streamlining regulations, enhancing trade logistics, and offering incentives for new industries. For instance, the pharmaceutical sector, meeting 98% of domestic demand, is being positioned for global markets, while agro-processing is gaining traction to support food security and exports. Posts on X highlight a growing sentiment that Bangladesh should target high-potential sectors like IT and leather to reduce reliance on textiles, aligning with the nation’s long-term vision of achieving upper-middle-income status by 2041.
Infrastructure development remains a priority, with projects like the Bangladesh Investment Climate Improvement Program working to simplify business regulations and attract foreign direct investment (FDI). Despite challenges such as inflation and financial sector vulnerabilities, the economy has shown resilience, with a projected GDP growth of 3.9% in 2025. Job creation is a key focus, with policies targeting millions of new jobs in construction, digital financial services, and green manufacturing.
By balancing industrial expansion with sustainable practices, Bangladesh aims to build a robust economic future, leveraging its young workforce and strategic trade partnerships to drive progress.
Published in SouthAsianDesk, July 13th, 2025
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