Large-Scale Manufacturing Sector Grows by 6.85%

Industrial output grew by 6.66% in FY2024, down from 8.37% in FY2023 and 9.86% in FY2022, marking the third consecutive year of decline since FY2021's 10.29%. The Bangladesh Bureau of Statistics (BBS) released this data two months into the new fiscal year, with reports attributing the slowdown to import restrictions, foreign exchange shortages, high inflation, and gas shortages.

The Bangladesh Economic Zones Authority (Beza) has requested the interim government's approval to terminate its agreement with SBG Economic Zone Ltd for a project in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, Chattogram. The consortium, including Sikder Group, Bashundhara Group, and GasMin Ltd, failed to develop the 500-acre site by the 2020 deadline, as required by the contract.

Manufacturing companies across various sectors—food and beverages, textiles, and cement—are struggling to recover from losses incurred during weeks of nationwide unrest, including government-imposed curfews, internet blackouts, and vandalism following the resignation of the previous government.

Large-scale manufacturing industries in Bangladesh showed a modest pickup with a 6.4% growth in March, as reported by the Bangladesh Bureau of Statistics. The industrial production index rose to 217.45 in March, up from 204.18 a year earlier, but only increased by less than 1% compared to February 2024.

Linde Bangladesh has transferred its welding electrodes business, a major revenue segment, to the ESAB Group. Previously operated under its subsidiary, Linde Industries Pvt Limited, the transfer's financial details were undisclosed.

Industrial production in Bangladesh is decreasing at an alarming rate, impacting investment, employment, and the overall economy.  Additional pressures from government import controls and hikes in gas and electricity prices have exacerbated the situation. The import of capital machinery, raw materials, and intermediate goods has significantly decreased, negatively affecting industrial production and