Readymade Garment Industry in Bangladesh: Growth, Contribution and Challenges

Abstract

Based on secondary data, the study is intended to draw the scenario of RMG industry in Bangladesh, especially the growth, contribution, and challenges. RMG industry has been functioning in Bangladesh since long as a catalyst for sustainable development and growth of the country. It is the largest exporting industry in Bangladesh that has experienced tremendous growth during the last 25 years. It provided more than five million direct jobs, 16 percent of GDP, and more than 81 percent of foreign exchange earnings in FY2013-2014. The Knitwear industry is adding up to 75% value, which opens up enormous potential for foreign and domestic investors to spend in the areas of spinning, weaving, sewing, packaging, and accessories manufacturing. Despite the stupendous growth of the RMG industry, and its bright prospects, challenges are still there. In order to address the challenges, a number of collaborative and coordinated steps should be initiated. Along with establishing sound infrastructure, skill manpower, improved productivity, enhanced market access, market diversification, access to finance at competitive interest rate, and establishment of secured special industrial zones are crying need for the industry. Moreover, to grab and retain the sweet fruits of RMG a positive branding should be continued.