Sage-Tips

Why Bangladesh is a rising industry for garment?

Cheap labor is the main factor; Bangladesh’s apparel industry is capitalizing on when it comes to attracting big retail brands. Hence, the demand of raising the minimum wages substantially cannot be fulfilled, at least in the near future.

What is the current global position of Bangladesh’s textile and garment industry?

At present, Bangladesh ranks second in the world as the largest apparel producers with a $20 billion business in which 80\% is earned by exporting goods. There are three fundamental factors which have boosted the growth of textile in Bangladesh.

How much of Bangladesh’s exports are clothes?

But this success story derived from exports comes from an extreme concentration in garment manufacturing: The share of garments in Bangladesh’s total exports increased from 75 percent in 2000 to more than 86 percent in 2019.

How does the textile industry contribute to the economy of Bangladesh?

It contributes 20\% to Bangladesh’s gross domestic product. The RMG sector, coupled with other clothing exports accounts for up to 81\% of the country’s export earnings, and the rapidly growing apparel industry contributes up to 20\% to Bangladesh’s GDP, more than any other secondary industry sector.

Is the garment industry good for Bangladesh?

In the last seven years, Bangladesh’s garment industry has increased its annual revenue from $19 billion to $34 billion—a 79 percent rise. This makes the country the second largest exporter of garments in the world, with the sector accounting for 80 percent of Bangladesh’s total export earnings.

Which type of economic advantage does the garment industry achieve in Bangladesh?

The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $5 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90\% are women.

What are the major products exported from Bangladesh to India?

Among other major products, Bangladesh exported to India vegetable textile fibre and paper yarn worth $141.84 million and animal and vegetable fat worth $158.57 million. It also earned $84.60 million and $33 million by exporting jute and jute goods and leather and leather goods respectively.

How much cotton does Bangladesh produce?

Currently, Bangladesh grows about 180,000 bales of cotton a year, which is just 1 percent of total demand in a year. Bangladesh spends more than $3 billion to import cotton a year. A bale equals 480 pounds or 218 kilograms.

Is India lagging behind Bangladesh in garment exports?

Though India has slipped behind Bangladesh in garment exports, it does not mean that the sector is facing problems. No doubt, its garment exports have not topped $17.5 billion yet but overall exports of textile products are around $35 billion. The Indian textile industry’s market size is worth $150 billion.

How many garment factories are there in Bangladesh?

Consequently, over 1,250 units were shut down but nearly 350 new ones have come up since then. Currently, Bangladesh has 4,560 garment factories involved in exports. To Bangladesh’s credit, the mishaps of 2012 and 2013 have not bogged down its garment exports.

Why choose bangbangladesh for your T-shirt exports?

Bangladesh caters to the lower segment of the market, exporting T-shirts and shirts in bulk, while India has emerged as the supplier of superior woven and knit products.

Why Bangladesh is the best country for garment industry in Asia?

While the cost of labour in Bangladesh is the lowest in South Asia, the productivity of a Bangladeshi worker is more than his counterparts in the region. And being an LDC, Bangladesh is allowed duty-free exports. Such advantages work in its favour to grabbing more of the global garments export market.