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Light Engineering In Bangladesh
Light Engineering

  • Machinery parts
  • Bicycle
  • Other Consumer parts
Sector Highlights

Due to shortage in labor and wage hike in the light engineering sector world wide, Bangladesh has a huge potential in this sector. Foreign investors can take advantage of Bangladesh's low ¬cost and easily trainable labor and already established light engineering industry and its infrastructure facilities to manufacture quality products for the export market.


  • Irrespective of size, 30,000 to 40,000 light engineering enterprises are spread over the country, employing more than 1,500,000 persons.
  • Current light engineering industry manufactures about 10,000 types of products and earns more than US$ 1400 million annually.
  • During 2005-2006 this industry has earned US$110 million through export; which is 41% higher than that of the previous year. And this industry has maintained a 77% CAGR in case of export earning for the last four years.
Industry Situaiton
  • Cheap and semi-skilled trainable workforces are available.
  • Cost of some input materials like infrastructure, electricity, gas and water are comparatively lower.
  • Available raw materials.
  • Access to material testing and product innovation facilities are limited.
  • Advanced technical know-how and international market information are not available.
  • Low individual production volume. And lack of coordination among the market players.
Government Supports
  • Government has announced this industry as "Thrust Sector" and provides 10% cash incentive to the exporters.
  • Government is contemplating to set up an exclusive export processing zone (EPZ) for this sector.
LEIC Services for Foreign Investors
  • Provides professional services and financial assistance for developing/enhancing technical edges through partnerships with foreign or local large companies.

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LEIC is managed by IDLC Finance Limited with contribution from the Canadian International Development Agency (CIDA)