DCCI hails Industrial Policy
Sunday, 12 December 2010
FE Report
Dhaka Chamber of Commerce & Industry (DCCI) has welcomed approval by the cabinet of the draft of the National Industrial Policy-2010 as it provides for supporting sick industries both in private and public sectors to create an industry-friendly environment. The draft policy stipulates protection for 'sensitive and vulnerable' industries in national interest.
It also encourages both foreign and local investments under public-private partnership initiatives for industrial development of the country. Updated from the 2005 industrial policy, the draft also proposes to develop special economic zones in poverty-hit Rajshahi and Rangpur divisions, according to an editorial of DCCI Review of October issue.
Earlier on February 18, the cabinet committee on economic affairs had sent back the proposed industrial policy suggesting major changes to make the policy compatible with the growing needs of the country. The suggestions included incorporation of responsibility for environmental protection, guidelines for making state-owned enterprises profitable, and outsourcing for industrial sector. The draft that classifies industries in five categories - large, medium, small, micro and cottage - emphasizes development of medium and small industries. It provides for privatization of the state-owned enterprises ensuring alternative employment for the workers and employees. The policy targets that the gross domestic product would reach eight per cent growth by 2013 and 10 per cent by 2017.
DCCI hopes that the Industrial Policy would further boost GDP growth meaning more output, employment and income and, in consequence, more wellbeing for the people. The new Industrial Policy should help Bangladesh achieve higher economic growth. DCCI expects GDP growth to exceed 7 per cent if the directives mentioned in the policy are properly implemented.
DCCI is of the opinion that the Industrial Policy should play a vital role in fulfilling the government target of 40 per cent contribution of industrial sector to the national income and increase employment generation by around 25 per cent within 2021. Chamber is happy that the Industrial Policy has recognized the vital role of the Small and Medium Enterprises (SME) sector as it has received priority as the government, like the DCCI, believes this sector will help keep the wheels of the country's economy running.
DCCI fully shares the government's efforts to upgrade Bangladesh to a middle income country through raising contribution of its industrial sector to the national economy up to 40 per cent from the existing 28 per cent. Doubtlessly, the country's industrial and investment policies have been liberalized to open new investment avenues through creating a sound environment for the entrepreneurs. Under the new Industrial Policy, there should be a package of import duty on capital machineries based on advantaged and disadvantaged areas for ensuring balanced development of the country. DCCI welcomes the Industry Policy's thrust on mopping up remittances for productive uses by encouraging the non-resident Bangladeshis to invest in the country.
Their investments would henceforth be considered as foreign investments. But then measures should be taken for creating massive infrastructure facilities including setting up of economic zones at industrially disadvantaged areas of the country like greater Rangpur, Dinajpur and Rajshahi districts and incentives should be given to those areas. What is vitally important for execution of all lofty aims of the new Industrial Policy is provision of gas and power to industrial units. Otherwise, the Industrial Policy will remain a mere mirage, not reality.
Dhaka Chamber of Commerce & Industry (DCCI) has welcomed approval by the cabinet of the draft of the National Industrial Policy-2010 as it provides for supporting sick industries both in private and public sectors to create an industry-friendly environment. The draft policy stipulates protection for 'sensitive and vulnerable' industries in national interest.
It also encourages both foreign and local investments under public-private partnership initiatives for industrial development of the country. Updated from the 2005 industrial policy, the draft also proposes to develop special economic zones in poverty-hit Rajshahi and Rangpur divisions, according to an editorial of DCCI Review of October issue.
Earlier on February 18, the cabinet committee on economic affairs had sent back the proposed industrial policy suggesting major changes to make the policy compatible with the growing needs of the country. The suggestions included incorporation of responsibility for environmental protection, guidelines for making state-owned enterprises profitable, and outsourcing for industrial sector. The draft that classifies industries in five categories - large, medium, small, micro and cottage - emphasizes development of medium and small industries. It provides for privatization of the state-owned enterprises ensuring alternative employment for the workers and employees. The policy targets that the gross domestic product would reach eight per cent growth by 2013 and 10 per cent by 2017.
DCCI hopes that the Industrial Policy would further boost GDP growth meaning more output, employment and income and, in consequence, more wellbeing for the people. The new Industrial Policy should help Bangladesh achieve higher economic growth. DCCI expects GDP growth to exceed 7 per cent if the directives mentioned in the policy are properly implemented.
DCCI is of the opinion that the Industrial Policy should play a vital role in fulfilling the government target of 40 per cent contribution of industrial sector to the national income and increase employment generation by around 25 per cent within 2021. Chamber is happy that the Industrial Policy has recognized the vital role of the Small and Medium Enterprises (SME) sector as it has received priority as the government, like the DCCI, believes this sector will help keep the wheels of the country's economy running.
DCCI fully shares the government's efforts to upgrade Bangladesh to a middle income country through raising contribution of its industrial sector to the national economy up to 40 per cent from the existing 28 per cent. Doubtlessly, the country's industrial and investment policies have been liberalized to open new investment avenues through creating a sound environment for the entrepreneurs. Under the new Industrial Policy, there should be a package of import duty on capital machineries based on advantaged and disadvantaged areas for ensuring balanced development of the country. DCCI welcomes the Industry Policy's thrust on mopping up remittances for productive uses by encouraging the non-resident Bangladeshis to invest in the country.
Their investments would henceforth be considered as foreign investments. But then measures should be taken for creating massive infrastructure facilities including setting up of economic zones at industrially disadvantaged areas of the country like greater Rangpur, Dinajpur and Rajshahi districts and incentives should be given to those areas. What is vitally important for execution of all lofty aims of the new Industrial Policy is provision of gas and power to industrial units. Otherwise, the Industrial Policy will remain a mere mirage, not reality.