New Industrial Policy likely to get cabinet nod on Monday; GDP growth to exceed 7% if policy directives implemented properly: Industries Minister

By AKM Moinuddin

Dhaka, Sept 4 (UNB) – The much-expected new Industrial Policy of the country is likely get approval from the Cabinet on Monday, said officials.
The government hopes further boost in GDP growth that means more output, employment and income and, in consequence, more wellbeing for the people.
“The new industrial policy will help achieve higher economic growth…I hope GDP growth will exceed 7 percent if the directives mentioned in the policy are properly implemented,” Industries Minister Dilip Barua told UNB.
The government set a 6.7 percent GDP growth target for fiscal 2010-11, which the government thinks as an imperative for the country to become a middle income country by 2015.
Asked about the possibility of getting the formal approval of the Cabinet on Monday’s weekly meeting, Barua said: “I’m hopeful…it’ll get approval without any major changes.”
He expected the industrial policy to play vital role in fulfilling the government target of 40 per cent contribution of industrial sector in the national income and increase employment generation by around 25 per cent within 2021.
Industries Ministry sources said the new industrial policy would play a vital role in both industrial development and economic growth, and it will have specific guidelines on industrialization in the country with a vision till 2021.
The policy will also back government’s decision not to privatize any profitable units in future and not to handover any state-owned enterprises (SoEs) to private ownership without first creating alternative employment opportunities for those who might get laid-off.
The SME sector will receive priority in the coming industrial policy as the government believes this sector will help keep the wheels of the country’s economy running.
Earlier, the Cabinet Committee on Economic Affairs at a meeting on August 3 cleared draft Industrial Policy and sent it to the cabinet for approval.
A three-member committee headed by Board of Investment (BoI) executive chairman SA Samad scrutinized the draft industrial policy.
After necessary scrutiny, the draft policy with some minor changes was placed before the cabinet committee on Economic Affairs for its consideration.
The draft of the new industrial policy was first placed in the meeting of the cabinet committee on economic affairs for its perusal in January this year.
The new industrial policy gives priority to special economic zones and enhanced foreign direct investment.
END/UNB/AKM/