Bangladesh EconomyAgriculture and Industrial

Sector of Bangladesh

KAMRUL & AKHI

Presented by

Importance of Agriculture in Bangladesh

• Agriculture is an important sector of the economy of Bangladesh and one of the main drivers of economic growth.

• In order to ensure food security, the government is committed to achieve self sufficiency in food by 2013 through increased production.

• Though the direct contribution of the agriculture sector has decreased slightly, its indirect contribution to the overall growth of GDP is significant.

• The growth of broad service sector, particularly the growth of wholesale and retail trade, hotel and restaurants, transport and communication sector is strongly supported by the agriculture sector.

• Provision of food security, improvement of the living standard and generation of employment opportunities of the huge population of the country are directly linked to the development of agriculture.

Contribution of Agriculture in GDP

The contribution of agriculture sector in GDP is declining in last three decades

Food BudgetImport by Public Sector:

In 2010-11, it was targeted to import 12.86 lakh tons of rice and 9.12 lakh tons of wheat

Till February 2011 import stood 5.31 lakh tons or rice and 5.24 lakh tons of wheat (a total of 10.55 lakh tons).

In 2009-10 total import was 5.56 lakh tons.

Import by Private Sector:

Till February 2011, total import was 20.88 lakh tonsIn 2009-10, total import was 28.99 lakh tons.

Food Aid:

Till February 2011, total food aid was 1.49 lakh tons.

Agriculture

Strengths of Agriculture in Bangladesh

• Favorable agro climate• Experts are available• Research Extension

System for technology generation

• Farmers are responsive, innovative and adaptive new technologies

• Sufficient workforce • Wide range of biodiversity• Available water

Weakness and Threats of Agriculture in Bangladesh

Weakness and Threats of Agriculture in Bangladesh

Weakness• Weak Agro Marketing

System• Post harvest loss is high• Farmers own capital is low• Low access to institutional

credits• Private investment in

research and development is low

Threats• Environmental

Vulnerability• Soil health is declining• Cultivable land and water

also declining• Uncertainty of fair prices• Use of agricultural land for

non-agricultural use is increasing

Industrial Sector of Bangladesh

Overview of Industrial SectorIndustrialization is indispensable for rapid and sustainable economic development.The contribution of the industry sector to Bangladesh economy has been on the increase. In FY1980-81, the contribution of the broad industry sector to real GDP was17.31 percent which has increased to 29.88 percent in FY2009-10, according to BBS. Among the fifteen sectors identified for computing national income, the broad industry sector includes five sub-sectors such as mining and quarrying; manufacturing; construction; electricity and gas and water supply.In order to reduce poverty and to generate employment opportunities, the present government is committed to bring about rapid industrialization.

Contribution of Industrial sector in GDP (in percentage)

•Contribution of Industrial sector in GDP is increasing over the years during the last three decades.

Growth Rate of Industrial Sector (in percentage)

•Growth rate of Small-Medium industry lies between 6.90% to 9.69% in last six years.

•Growth rate of Medium-Large industry lies between 5.98% to 11.41% in last six years.

•Growth rate of overall industry lies between 6.50% to 10.77% in last six years.

Bangladesh Export Processing Zones (EPZs)

Bangladesh Export Processing Zones (EPZs)

Largest

Smallest

Steps Forward

Steps ForwardSteps have been taken to set up special economic zones in various regions to boost up exports and establish export-oriented industries. The economic zones will comprise: (1) export processing zone, (2) domestic processing zone, (3) commercial zone, (4) processing-free zone, (5) agro-based or service-based zone and (6) high-tech parks, ICT villages, software technology parks

References:Bangladesh Economic Review 2011Bangladesh Economic Review 2010www.mof.gov.bdMinistry of Agriculturewww.moa.gov.bdMinistry of Industrieswww.moind.gov.bd

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