Beyond the RMG: diversifying Bangladesh’s export basket through green industrial parks and technology-driven sustainable manufacturing in emerging sectors

Abstract

Bangladesh’s economy has long been dependent on the ready-made garment (RMG) sector, but diversification is critical for sustainable growth. This study examines how green industrial parks and technology-driven sustainable manufacturing can expand Bangladesh’s export basket, leveraging data from 2000 to 2023. The study applies the export diversification sustainable manufacturing in Bangladesh dataset to monitor RMG and non-RMG exports, green industrialization measures, including renewable energy capacity and ISO 14001 certifications, as well as the automation index and CO2 reduction technology. Sectoral changes, along with policy impacts, are assessed using regression and trend analysis. Non-remittance exports grew 440%, led by pharmaceuticals, ICT, and agro-processing. Green industrial parks and automation drove a 43.5% CO2 reduction per unit of output. Policy incentives, such as tax breaks and Industry 4.0 funding, accelerated diversification.