The approval was given at the meeting of the Cabinet chaired by Prime Minister Sheikh Hasina at the Secretariat.
Cabinet Secretary Mohammad Shafiul Alam briefed reporters after the meeting.
Shafiul Alam said in the policy, a target was set to produce five lakh motorcycles by 2021 and 10 lakh by 2027.
At present, there is an opportunity of employment of five lakh people in motorcycle industry but it will be promoted to 15 lakh in 2027 in the new policy, he said.
The draft of Bangladesh Engineering Research Council Bill-2018 was placed before the cabinet for its approval in principal but the Cabinet formed a four-member committee, headed by Local Government, Rural Development and Cooperatives (LGRD) Minister Khandker Mosharraf Hossain, to examine the draft bill further.
Three other members of the committee are-- Housing and Public Works Minister Engr Mosharraf Hossain, Information Minister Hasanul Haq Inu and Science and Technology Minister Yafes Osman.