A data driven assessment of structural barriers to electrical equipment manufacturing in Bangladesh: trade dependency, industrial competitiveness, and policy pathways

Abstract

The rapid expansion of Bangladesh’s power and industrial sectors has led to a significant increase in demand for electrical equipment, a large portion of which is currently fulfilled through imports, resulting in sustained foreign currency outflows and supply chain vulnerabilities. This study investigates the feasibility, opportunities, and constraints associated with developing local assembly and manufacturing of electrical equipment, with particular focus on transformers and low- and medium-voltage panels. The analysis is based on a mixed-method approach that integrates foreign trade data from FY 2021–22 to FY 2023–24, industry-level information, and policy evaluation to assess import dependency, domestic manufacturing capability, and export potential. The findings reveal that the sector is characterized by high reliance on imported finished products and raw materials, indicating structural limitations in local value addition and technological capability. However, the study demonstrates that strengthening domestic manufacturing can significantly reduce import dependency, shorten procurement lead times, and enhance supply chain resilience while generating employment and supporting industrial skill development. Furthermore, the analysis identifies key fiscal and procurement policy reforms as critical enablers for improving cost competitiveness, facilitating import substitution, and unlocking export opportunities. The study highlights the strategic importance of developing a robust local manufacturing ecosystem to support long-term industrial sustainability and economic resilience in Bangladesh.

The authors' abstract, as published at the source. Scientific Reports, 2026 · DOI ↗