Garment Industry of Bangladesh

Bangladesh has gained a lot of fame in the garment industry. The garment industry of this country is playing an important role in the export trade. The contribution of this industry in solving the problem of unemployment, employment and economic development is encouraging.

★Status of the garment industry:

Garment factories were established in the country in 1986 through personal efforts. In 1975, the massive expansion of the garment industry began. At that time the industry started with 125 garment factories. Due to the demand of the international market in the past years and the active role of domestic enterprises, the number of factories now stands at 2,900. At present about 12 lakh men and women are working in the garment industry. 75 percent of them are women. The number of semi-educated or uneducated people is more. The country's ready-made garment industry provides 64 percent of the national income. Exports of ready-made garments in 1995 generated foreign exchange earnings of US 1.65 billion. Bangladesh's garment industry is 100 percent export oriented. Bangladesh ranks fifth in the world in garment exports. So it goes without saying that this sector has huge potential.

★Garment Market:

The United States is the largest buyer of garment industry in Bangladesh. This is followed by Europe and Canada. Garments made from Bangladesh are exported to 30 countries of the world. Bangladeshi garments are also exported to UK, France, Germany, Belgium and Middle Eastern countries. The market is expanding in Japan, Australia, Russia and other countries. It is to be noted that Bangladeshi clothes are highly valued in the world market. As a result, as its market is growing day by day, so is its production. It is hoped that the garment industry will make a huge contribution to the economic development and will also play an important role in solving the unemployment problem of the country.

★Contribution of the garment industry to the economy of Bangladesh:

The garment industry has been making a far-reaching contribution to the economy of Bangladesh.

*The main aspects of the contribution of this sector are given below:

1. Economic development and increase in exports: As a result of the development of the garment industry, the number of export products of the country has increased. About 100 buying houses in our country are engaged in selling garments. About 74 percent of the national income comes from this sector. However, this income depends on the export trade.

2. Solving the Unemployment Problem: The industry is playing an important role in reducing unemployment and self-reliance in the national life as it provides employment to more than one million women workers from poor, lower and middle class families.

3. Rapid Industrialization: The garment industry continues to play an important role in rapid industrialization. As a result, spinning, weaving, knitting, dyeing, finishing, printing etc. industries have developed in the country. Apart from this, the industry of zippers, buttons etc. is also expanding.

★Problems in the garment industry:

The Agreement on textile and clothing introduced by the World Trade Organization (WTO) on 1 January 2005 has come into effect. Multifibre Arrangement (MFA) agreement has been abolished. Countries like Singapore, Thailand, China, Indonesia etc. are producing quality garments at low cost, compared to which Bangladesh is still far behind.

At the root of this backwardness are multiple problems. Such as:

1. Lack of Backword and Forward Linkage industry.

2. Inadequacy of yarn production. There are now 1,126 weaving and spinning mills in Bangladesh, including 142 ring spinning mills and 15 open and spinning mills. These are mainly produced for the domestic market.

3. Shortage of foreign investment.

4. Lack of education for garment workers.

5. Lack of proper training of workers.

6. Lack of advanced technology.

7. Underdeveloped infrastructure.

8. Port-problems.

9. Bank interest rates are much higher.

10. Mismanagement of the banking sector.

11. Lack of adequate capital.

12. Bureaucratic complexities.

13. Customs harassment.

14. Deterioration of law and order situation.

15. Marketing error.

16. There are transportation problems.

★Necessary steps to solve the problem:

The first requirement for the development of the garment industry is government cooperation and commercial facilities.

*Other aspects include:

1. Setting up the Backword and Forward Linkage industry.

2. Installation of modern equipment.

3. Development of technology.

4. Maintaining the quality of the garments produced.

5. Supply of improved raw materials to reduce the cost of production.

6. Enhancing the skills of the workers.

7. Development of port system.

8. Ensuring political, economic and social stability.

9. Strengthen economic diplomacy.

10. We have to improve our own fashion and design.

★Potential of garment industry:

The future of textile industry in Bangladesh can be said to be bright. However, in order to survive in the current competitive market, Bangladesh has to make a lot of preparations. Industries must obtain ISO certification. We need to take up the challenge by increasing the quality of our garments and garments through skills enhancement and modern technology. Above all, the government, entrepreneurs and banks must come forward.

The role of the garment industry in earning foreign exchange and solving the problem of unemployment is unique. So this industry needs to be kept alive.