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Industrial Policy

In order to achieve the objective of accelerating industrial growth and to gain a greater share of industry in the Gross Domestic Product (GDP) as well as to make the industrial policy responsive to the changes occurring in the global economy, the present government announced a new Industrial Policy-1999.

The main features of the Industrial Policy 1999 are as follows:

To expand the production base of the economy by accelerating the level of industrial investment. To promote the private sector to lead the growth of industrial production and investment. To focus the role of the government as a facilitator in creating an enabling environment for expanding private investment To permit public undertaking only in those industrial activities where public sector involvement is essential to facilitate the growth of the private sector and /or where there are over riding social concerns to be accommodated. To attract foreign direct investment in both export and domestic market oriented industries to make up for the deficient domestic investment resources, and to acquire evolving technology and gain access to export markets. To ensure rapid growth of industrial employment by encouraging investment in labour intensive manufacturing industries including investment in efficient small and cottage industries. To generate female employment in higher skill categories through special emphasis on skill development. To raise industrial productivity and to move progressively to higher value added products through skill and technology up gradation. To enhance operational efficiency in all remaining public manufacturing enterprises through appropriate management restructuring and pursuit of market oriented policies. To diversify and rapidly increase export of manufactures. To encourage the competitive strength of import substituting industries for catering to a growing domestic market. To ensure a process of industrialisation which is environmentally sound and consistent with the resource endowment of the economy. To encourage balanced industrial development throughout the country by introducing suitable measures and incentives. To effectively utilize the existing production capacity. To coordinate with trade and fiscal policies. To develop indigenous technology and to expand production based on domestic raw materials. To rehabilitate deserving sick industries.
Definition and classification of industry

"Industry" is broadly defined to include both manufacturing industry and service industry "Manufacturing industry" includes all production, processing and assembling activities as well as repairing and reconditioning of processed goods. "Service industry" includes those service oriented activities which involve significant use of equipment or fixed assets. The list of service activities which are currently declared "industries" is shown in Appendix-1. "Large Industry" is defined to include all industrial enterprises employing 100 or more workers and/or having a capital of over Taka 300 million. "Medium Industry" will cover enterprises employing between 50 and 99 workers and/or with a fixed capital investment between Taka 100 million and Taka 300 million. "Small Industry" will mean enterprises employing fewer than 50 workers excluding the cottage units and or with a fixed capital investment of less than Taka 100 million. "Cottage Industry" covers household based units operated mainly with family labour. "Reserved Industries" are those which are earmarked exclusively for public investment through executive order. The current list of "Reserved Industries" is shown in para 2.2 "Thrust Sectors" are those industrial activities which are identified or so declared by the government for the purpose of targeting special incentives and supportive measures. The current list of Thrust Sectors is shown in Appendix-1.
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