The textile and garment industry provides a single source of growth for Bangladesh’s fast-growing economy. Bangladesh is the second largest exporter of garments in the world among western fast fashion brands.
The size of the local textile industry is huge and the market size is USD 7 billion. Textile and garment exports are the main source of foreign exchange earnings. In 1972, the World Bank estimated the gross domestic product (GDP) of Bangladesh at US $ 6.29 billion, and it increased to $ 368 billion by 2021, of which $ 46 billion was generated by exports, of which 82% was readymade garments. The RMG industry earned US 28 28.14 billion in FY 2016-2017, accounting for 80.7% of total export earnings from exports and 12.36% of GDP.
The main destinations for textile exports from Bangladesh are: Germany ($ 6.27B), United States ($ 5.57B), United Kingdom ($ 2.87B), Spain ($ 2.81B), and Poland ($ 2.11B).
The fastest growing export markets for Bangladeshi textiles between 2019 and 2020 are Poland ($ 296M), Switzerland ($ 108M), and Belgium ($ 48.9M).
Bangladesh import many kind of raw materials and textile machineries from china, japan, India, Germany, Korea, USA, UK etc. This sector import remaining 98% raw material in the form of cotton, yarn, fabrics and filament. In 2017, Bangladesh imported T & A commodities worth $11.3 billion.
The massive growth of this sector and its role as an economic power for the country is largely attributed to the availability of “cheap” labour. Of the four million workers employed in the RMG industry, 85% are illiterate women in rural areas.
Bangladesh’s textile and garment industry has successfully overcome the challenges and is improving despite the fierce competition with a number of countries, including the ongoing global recession and the strong backward connectivity industry.
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