Industry BD
Industry BD
1 (2017) 51-58
Abstract
Industrialization is an essential prerequisite for rapid economic growth of a developing country like
Bangladesh. This study shows the major industrial growth of the country and their impact on the national
economic development, public safety, health and environment. The capacity, productivity and
export/import values of industrial products are used to establish the baseline scenario. There are
significant numbers of chemical intensive industries such as textile, leather, food, fertilizer and
pharmaceutical industry that have direct impact on socio economic development of the country. It is
worth noting that Bangladesh is not only importing industrial products from other countries but also
exporting a substantial amount of product to over 100 countries of the world and shows an impressive
growth in industrial sectors Rapid industrial growth often offers a huge burden of environmental pollution
and associated risks. Thus, there are still lots of space for Bangladesh to flourish in this sector. This
study presents the prospects, and recommendations for major industrial sectors to achieve safe and
sustainable industrial growth in Bangladesh.
Keywords: Industrialization, Environmental Pollution, Export & Import, Safety and Sustainability
most growing economies, contribution of the sector began in 1972 with 72 jute mills, 44 textile
Agriculture sector to GDP has been on a steady mills, 15 sugar mills, 1 still mill, a diesel engine unit
decline, with Services making up most of GDP, and a shipbuilding industry. However, all these
followed by the Industries sector. Bangladesh industries turned into loosing concerns very soon
operates a thriving textile and clothing export due to mainly mismanagement and secret removal
industry and is one of the world’s largest garment of wealth and capital. The development of new
exporters. Garments account for almost 80 percent industries like sulfuric acid, chemicals, paper,
of its total exports. [16] Large-scale industries are caustic soda, glass, fertilizer, ceramic utensils,
also likely to enjoy faster productivity growth cement, still and engineering was slow before
compared to small-scale and cottage industries. 1985.New industrial ventures set up in the 1980s in
Productivity is a measure of the output produced in Bangladesh have been playing a significant role in
that industry and productivity growth measures the the country’s economy. These include, shipbuilding
rate of growth chemicals import and use. There are industry, motor vehicle assembling plant, oil
various types of industries in Bangladesh. The refinery, insulator and medical equipment
average growth rate of industries is on average 6- manufacturing factories, telephone and telecom
10%. Chemical and pharmaceutical, power, food accessories making units, televisions assembling
and allied industries have major share in numbers factories, cigarette factory and vegetable oil
as shown in Fig.1. industries. Readymade garment sector achieved a
remarkable progress in the country during the
Cement Ceramics
period. Policy comprising national development plan
4% Sector
3%
and open market economy have been followed by
the government, resulting in significant industrial
Textile growth in the 1990s[19]. Since then the industrial
25% growth is remarkable except some obstacle in few
Engineeri years. The clear picture of the industrial growth form
ng financial year 1998 to 2016 is shown in Fig. 2.
18%
10
Growth rate(%)
8
Food & 6
Allied
Tannery 9%
Industry 4
3% Fuel & 2
Pharmac Power
euticals & 10% 0
Chemical
15%
Paper & Miscellan
Printing IT Sector Year
eous Jute 4%
1% 6% 2% Fig.2. Industrial growth rate of Bangladesh
Fig.1. Percentage of Sector Wise Industries in
Bangladesh [17] 4. Major Industrial Sector in Bangladesh
Bangladesh is populated country in the world. The
3. Status of Industrial Growth economic stability of this country is largely
Since its independence in 1971, Bangladesh has dependent on agriculture. But the economic income
achieved a tremendous growth rate in its industrial from agriculture sector cannot fulfill country’s all
production. The economy comprises of a number of requirements. Industrialization is a better solution to
Small and Medium Enterprises that make up for economic development for the highly populated
25% of the nation’s Gross Domestic Product (GDP). country like Bangladesh. So, the economic policy
Three products like garments, pharmaceuticals and has been changing from agriculture sector to
textiles constitute 65% of manufacturing growth. [18] industrial sector in last few years. The growth rate of
In the 1960s and 1970s, it was widely believed by industry in different sector is quite satisfactory. The
international economists that the state had to play a analysis of some major industry in Bangladesh is
direct role in industrial development. The described below:
reconstruction and rehabilitation cost of the
damaged industrial units after liberation war was 4.1 Garments Industry
estimated at Taka 291 million, of which Tk. 223 The Ready Made Garments (RMG) is covering a
million was estimated for the public-sector large industrial sector in Bangladesh. In 1994, there
industries. The journey of the nationalized industrial were only 300 factories employing only a few
Journal of Chemical Engineering, IEB Vol. 30, No. 1 (2017) 51-58
thousand people. The number of RMG factories is It can be said by analyzing the data of Table 1 and
increasing in almost every year. From Fig.3, it can Fig.3, RMG sector in Bangladesh have been
be said that the RMG sector has experienced an securing a high growth in every year. The exporting
exponential growth since the 1984 [20]. The currency from this sector is also increasing in every
exponential growth rate is continuing up to 2013s. calendar year. The average growth form the
After that the exponential growth is disturbed due to financial year 2007 to 2016 is 12.84% which shows
some incident happen in this sector. Government strong potential of the sector. Proper infrastructure
and private sector took necessary steps to solve the and more investment in this sector are needed to
major problems in this sector. The problems have reach its expected growth.
been little bit overcome in last few years. The
growth rate is staring to increase again. Currently, Large number of worker is needed in garments
there are 4296 manufacturing units and large industry. So increase the number of garments
number of factories is in under construction. industries in Bangladesh can decreases the
unemployment problems in the country. Proper
7000 maintenance in this sector can make leading textile
No. of Factories
2000-01
2002-03
2004-05
2006-07
2008-09
2010-11
2012-13
2014-15
2016-17
Table 2. Production Capacity of Basic Chemicals in Different Chemical Industry of Bangladesh [2].
Total
ASM Global Samuda Tasnim HP
Production
Product Name Chemicals Chemicals Chemicals Chemicals Chemicals
Capacity
(MT/day) (MT/day) (MT/day) (MT/day) (MT/day)
(MT/day)
Caustic Soda (100% basis
60 70 60 100 - 290
Flake/Liquid)
Chlorine ((Cl2 From
53 62 53 89 - 257
Electrolizer)
Hydrogen Peroxide (50%
60 - 70 60 28 218
Conc, H2O2)
Chlorine(Cl2) liquid 10 10 7 15 - 42
Hydrochloric Acid (32%
220 200 100 280 - 800
HCl)
Sodium Hypochloride
10 10 20 15 - 55
(NaOCl)
Stable Bleaching (SBP) 20 15 16 - - 51
Chlorinated Paraffin wax
20 10 20 15 - 65
(CPW)
Bangladesh is not chemically developed country. countries in this regard are Australia, Thailand,
The raw materials to produce the basic chemicals United Kingdom etc[27].
as well as other chemicals are also imported from
other country. From Fig.4, it is observed that China 0.300
has been leading as the top chemical importing
0.250
country for Bangladesh for the economic year 2007
to 2015. Side by side Bangladesh has been also 0.200
Million USD
3.00
2.00
1.00
0.00
Fig.5. Top Chemical Exporting Country from 2007 -
2015 [27].
export medicines to global markets of 79 countries, country has been exporting more leather footwear
including the European market. The main exported and other leather products. Top leather exporting
commodities are Tablets, Capsules, Syrups countries from Bangladesh are China, Japan,
including high-tech specialized products like HFA
Germany, UAE. The Fig.7 has shown the amount of
Inhalers, CFC Inhalers, Suppositories, Nasal
Sprays, Injectables, IV Infusions, etc. leather export to different countries in currency of
million USD.
60
250
50
Million USD
40 200
Million USD
30 150
20 100
10
50
0
0
Year
Fig.6. Exported Pharmaceutical products in million
USD from 2005-2011[3]. Fig.7.Top Lather exporting country of Bangladesh in
last 6 years from 2010 to 2016[12].
Bangladesh has become a drug exporting country.
The exporting foreign currency is increasing day by Beside the export market, the local market is also
day from this sector. Bangladeshi pharmaceutical booming. The economic growth of Bangladesh has
exports totaled USD 27.5 million in the financial year been impressive over the last decade, despite
2005-2006. Figure 6 has shown that the trend of the multiple challenges affecting the economy. Rising
export amount is increasing in almost every year GDP and slowing population growth have
and reached to USD 48.3million in financial year contributed to rising per capita income exceeding
2011-12.Exports of pharmaceutical products from
Bangladesh are still small in scale. It is important to lower income threshold. This has resulted in a
take necessary steps to export pharmaceuticals in gradual increase in consumer spending over the
large scale. previous years.
40
as Frozen food, Tea, vegetables, cereals, bakery
and confectionary, fruits and vegetables, dairy, 30
carbonated beverages and non-carbonated fruit
juices, drinks and various other food items [8]. The 20
remittance earning from other country in the
economic year 2013-2014 by exporting different 10
food commodities are given in Table 3. 0
Table 3: Exported different food commodities in 2007 2008
2009 2010 2011 2012
2013-2014 [10] Year
Fig.9. Fertilizer production and consumption in
Commodities Values in million USD
Bangladesh from 2007-2012 [28]
Frozen Food 629.77
It is shown from Fig.9 that total fertilizer production
Frozen Fish 63.55
is very smaller than total consumption. Though the
Tea 2.62 consumption is increasing but the production is
Vegetables 128.83 decreasing due to shortage of natural gas. the poor
Cut flowers and maintenance, exodus of experienced people, lack of
44.52
foliage human planning and above all aging of plants and
Fruits 93.56 obsolete technology. Bangladesh Chemical
Spices 25.12 Industries Corporation operates fertilizer industries
in Bangladesh. They are trying hard to increase
Dry food 48.64
production capacity by solving the problems.
Other agro
238.83
commodities 5. National Economic Growth
After fulfilling the local demand, these processed In the year 2016 the GDP of Bangladesh was worth
products are being exported to 70 countries 221.42 billion USD. The GDP of Bangladesh
throughout the world. Asia, Africa, Europe are the contributes 0.36 percent of the world economy. The
top exporting country of Bangladesh for different average GDP of Bangladesh is 45.68 from 1960 to
types of processed food. Frozen food is the top 2016. The highest record is 221.42 USD Billion in
Journal of Chemical Engineering, IEB Vol. 30, No. 1 (2017) 51-58
2016 and lowest record is 4.30 USD Billion in 1960. period was 19.03 percent with a minimum of 6.06
Fig.10 shows the GDP in Bangladesh from 2010 to percent in 1972 and a maximum of 28.77 percent in
2017. The value of GDP will be over 300 Billion 2016. [25] The World Bank provides data for
USD by 2020. Gross domestic product (GDP) Bangladesh value added by the industry from 1960
represents the comprised value of all services and to 2016. The average value for Bangladesh during
goods produced in any given year within a country. that period was 10.7 billion U.S. dollars with
GDP is the main indicator of a country's economic a minimum of 0.3 billion U.S. dollars in 1960 and
condition. [22] a maximum of 60.55 billion U.S. dollars in 2016
contributed solely by industrial growth. [26]
350
Thus, industrial sectors are contributing huge
300
amount of money (60 Billion USD in 2016) each
Billion USD
250
year and the economic growth is mostly because of
200
industrial growth. Also the contribution of industrial
150
sectors to national GPD is increasing each year. It
100
can be said that pursuing export-oriented
50
industrialization can be beneficial for the economy
0
of Bangladesh, focusing more in textiles, fish and
2018*
2019*
2020*
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
The value added of an industry, also referred to as Bangladesh needs well planned strategies to
gross domestic product (GDP)-by-industry, is the overcome all obstacles and increase production in
contribution of a private industry or government export sectors after filling the local demand. It is the
sector to overall GDP. For that indicator, The World prime mover in the development cycle in a densely
Bank provides data for Bangladesh from 1960 to populated country like Bangladesh. There are some
2016. The average value for Bangladesh during that recommendations which can be help to increase the
Journal of Chemical Engineering, IEB Vol. 30, No. 1 (2017) 51-58
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