Textile and Apparel industry is one of the biggest sources of economic growth in world today. Different countries are in top rankings for their strong textile industry and massive export. Bangladesh is one of them who has recorded massive industrial upraise in last one decade. The statistics of 2002 explains that Bangladesh earned 77% of total foreign exchange from textile, clothing and ready-made garments.
History signifies the real industrial strength of Bangladesh. Before 1971, most of the industries were in East Pakistan, which were handled by West Pakistanis. After partition, all big running industries shifted to Bangladesh when Bangladesh was going through political crisis. Before 1971 war, textile industry was in a process of import substitution industrialization to avoid foreign dependency.
Bangladesh has become an industrial giant and its main export is ready-made garments which earns revenue in billions. Here are some stats about Bangladesh textile industry’s economic growth with record earnings of foreign exchange. By 2013 around 4 million people, mostly women, worked and earned US$19 billion a year, on export of ready-made garments.
Bangladesh is considered second biggest apparel exporter of western brands after China.
About 60% export of western brands is with European buyers and 40% of export is with American buyers. Bangladesh garment industry earns maximum revenue out of it and its annual export encourages international investors and buyers a lot. Bangladesh suffered through world’s deadliest famines in which countless people lost their lives. Bangladesh’s total population is about 156 million which makes it among the biggest populated countries of the world. Around 45% of employment was accounted in textile industry in 2002.
2005 stats shows that it earned 75% of total annual income from ready-made garments export and it made Bangladesh industry a gigantic exporting and manufacturing industry with multi-billion dollars earning. It immensely improved Bangladesh’s economy. 2012 and 2014 were recorded as industrial success years for Bangladesh, comprising 80% of garments export to Europe and United States. This annual profit became increased to 81.13% in 2014.
In start of 1974, Multi Fibre Arrangement (MFA) which was directed from North America ensured that trade of textile and garments remained the most operational in whole world. Apart from this, MFA decided specific quota on export of garments from newly industrializing countries of Asia in order to open doors for Asian countries towards western market. That was the actual time period when ready-made garments industry originated and started flourishing in Bangladesh. In 10 years agreement, Bangladesh got tremendous benefits from quota-free-access and statistics shows like that export market share in 1995 for USA textile <3% , for USA clothing 4%, for EU textile <3% and for EU clothing 3% and market share in 2004, for USA textile its 3%, 2% for USA clothing, 3% for EU textile and 4% for EU clothing. This is the whole scenario and variable stats according to the time period.
1990 stats shows the growth in T-shirts, trousers, sweaters and jackets production and export and 90% of the export revenue generated for Bangladesh from Europe and US export which is a huge success. In 2004, Bangladesh’s textile industry grew massively and huge economic breakthrough of US$10.7 billion export in fiscal year 2007. Bangladesh stands in the row of world’s strong industrially stable countries and China is a big competitor of Bangladesh.
In 2006, literally Bangladesh’s export increased By US$500 million.
The number of employed workers increased from 4,000,000 in 1990 to 2 million in 2004, enterprises also increased from 800 to 4000. Maximum number of women is working and the well-being of 10-12 million people is associated with textile industry. There is a huge number of children working as employees in industries. That’s might be the reason, Bangladesh labor cost is the lowest one in the world. Number of accidental deaths occurred due to fire broke in many industries in different years.
Products include JC Penney, Kohl’s, Squeeze, Sears, VF Asia, Target Store, Charming Shoppes, Wal-Mart in USA market and H & M, Carrefour, Zara, Hema, American Eagle, GAP/Old Navy, M & S Mode, ETAM, Western Store, Migros, Celio and PNC in European market are exported from Bangladesh textile industry. Different fire broke in big factories like that’s It Sportswear Ltd, Tazreen Fashion Factory, Rana Plaza Incident, Mirpur Textile Factory. BGMEA (Bangladesh Garment Manufacturers and Exporters Association) is a significant trade body which signifies the garment manufacturers and garment exporters of Bangladesh.
Bangladesh is second largest ready-made garments manufacturer after China.
It is predicted that after 5 years Bangladesh will be the Top most ready-made garment manufacturing country of the world.
That’s the whole story of Bangladesh Textile Industry which is still rapidly growing and generating billions of dollars revenue for the country.