Bangladesh’s Manufacturing Sector Shows Resilience Amid Global Challenges

Despite global economic headwinds, Bangladesh’s manufacturing sector has demonstrated remarkable resilience in 2025, signaling a positive trajectory for the nation’s industrial landscape. According to the Bangladesh Bureau of Statistics (BBS), the Quantum Index of Large-Scale Manufacturing (LSM) rose by 3.77% year-on-year in February 2025, reaching 223.76 points, up from 215.63 in the same month of the previous year.This growth, while slightly lower than the 5.82% recorded in January, underscores the sector’s steady recovery from previous disruptions.  The manufacturing sector, accounting for over 11% of Bangladesh’s GDP, serves as a critical barometer of the country’s economic health. The recent uptick in LSM indicates a revitalization of industrial activities, driven by increased domestic demand and a gradual resurgence in export-oriented production. Many elements have led to this encouraging change. Supportive policies from the government, including incentives for industrial expansion and infrastructure development, have played a pivotal role. Additionally, the stabilization of energy supplies and improvements in logistics have facilitated smoother operations for manufacturers. Notably, the textile and garment sub-sectors have been significant contributors to this growth. In the early months of 2025, Bangladesh saw a notable increase in its garment shipments to the European Union, with a rise of 37%. This surge reflects strong international demand as well as the country’s favorable standing in the international market. Additionally, the government’s dedication to improving the business climate has drawn in investments from both local and international sources. The establishment of special economic zones and industrial parks has provided manufacturers with access to modern facilities and streamlined regulatory processes, fostering increased production capacities. While challenges remain, including global market volatility and supply chain disruptions, the sustained growth in manufacturing output offers a promising outlook. Industry stakeholders are optimistic that continued policy support and strategic investments will further bolster the sector’s performance. In conclusion, Bangladesh’s manufacturing sector is on a resilient path, overcoming global challenges through strategic initiatives and robust demand. This positive momentum not only strengthens the country’s economic foundation but also positions it as a competitive player in the global manufacturing arena.