Support import substitution industries

Every year, in addition to importing rice and lentils, Bangladesh spends a huge amount of foreign currency in importing cotton, edible oil, fuel, electronic goods, plastic raw materials and machinery. Of late, instability in the dollar exchange rate has clearly shown that excessive dependence on imports can make any country's macro-economy fragile. In this situation, using import substitution industriies to strengthen the economy can significantly reduce Bangladesh's dollar crisis.
Import substitution industry refers to producing goods domestically instead of importing them from abroad. Bangladesh has many such products that could be produced locally at affordable costs with limited policy support and an investment-friendly environment. Agro-based industries, light engineering, and information technology components offer enormous potential. According to Bangladesh Bank data, the country spends around $75-80 billion every year on importing cotton, edible oil, fertilizer, plastics and machinery. Research suggests that if Bangladesh increases production in light engineering and agro-processing by just 10-15 per cent, it could save $5-7 billion annually.
A closer look at agriculture shows that Bangladesh is self-sufficient in food production, yet it remains far behind in food preservation and processing. The global market value of processed agricultural food stands at around $7 trillion, but Bangladesh's share in this sector remains below $1 billion. Due to inadequate processing facilities, nearly 25-30 per cent of fruits and vegetables are wasted each year. If tomatoes from northern Bangladesh or coconuts from the southern region were processed into sauces or milk, the demand for imported food would decrease and farmers would receive fair prices.
Light engineering, often called the "mother of all industries," can become a major pillar of import substitution. At present, most of the machinery required for garments, shipbuilding, pharmaceuticals, and agriculture is imported. Every year, billions of dollars are spent solely on importing spare parts. Yet skilled workers in Dholai Khal, Bogura and Jashore have already demonstrated remarkable expertise through reverse engineering. If Bangladesh can locally produce even 20 per cent of the machinery parts used in textile or cement mills, it could save Tk 10,000-15,000 crore in foreign currency each year. This would not only save money but also reduce dependence on foreign companies and strengthen national security.
Sadia Afrin
Student, Islamic University, Kushtia