Garments Industry

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Executive Summery
Bangladesh is a tropical country in South Asia that is situated in the delta of two major rivers that flow down from the Himalayas (the Ganges and the Jamuna). The country’s land surface is therefore largely composed of alluvial silt, rendering the soil highly fertile. Historically, this has made Bangladesh an agricultural nation; although agriculture contributes only about a fifth of the national GDP, it employs three-fifths of the labor force (ADB, 2005). Bangladesh has an estimated population of 140 million (circa 2005), living in an area of about 55,000 square miles. In spite of numerous constraints, the economy has been on a steady growth path for the last 15 years, mainly due to private sector dynamism. Since 1990, it has grown at an average rate of 5% per year. The Asian Development Bank projects that real GDP growth will increase to 6% in 2006 and 2007 (ADB, 2005). Bangladesh’s total GDP stood at $275 billion in 2004, and per capita GDP was $2,000 (adjusted for purchasing power). The ready made garments industry started in our country as a non-tradition sector with a narrow export rise in the late 1970s.

The garments industry enjoyed a tremendous rise of 30 enterprises in 1980 increase to about 4825 on 2007-08 fiscal year. Out of 3.1 million manpower employed in factories, 2.38 million are women (85%), majorities of them are disadvantaged and economically poverty stricken women folk. The country’s RMG sector, to a creditable level has relieved Bangladesh from over populous unemployment burden through providing the largest employment next to agriculture, transport, trade and industry sector. This sector has uplifted the largest employment next to agriculture, transport, trade and industry sector.

At present the garments sector is running well. After removal of quota system the industry faced more completion than any time issued the export policy 2006-2009 and give the facilities to garments industries and recently government announces the incentives which accelerate the sector. Still this garments sector earn the foreign exchange significantly.

Garment industries started working from the late 1970’s. At present there are about 3000 garment industries in the country and 75 percent of them are in Dhaka. The rest are in Chittagong and Khulna. The prime reason why garment industries have come out to be the champion in the field of export is obviously the cheap labor. Labor is not as cheap anywhere in the world as it is in Bangladesh. Women contribute to the working force in these garment factories, as they are relatively cheaper than men. It has given them a steady income, economic independence, self-reliance and dignity, because they are earning their own living and managing their family expenses.

The growth trend of garments industry is positive. Over the last twelve years the garments industry have emerged as the largest source of earning foreign currency. The garments industry face the quota system which was a challenges for this sector. The present market is the garment sector in USA, Canada, Japan, Australia, New Zealand and Russia. The market is expanding in the middle east and other countries. Garments industry requires labor force to operate. In our country we have the labor forces in millions due to abundance labor forces this sector will increase the growth day by day.

Introduction:
Bangladesh is a tropical country in South Asia that is situated in the delta of two major rivers that flow down from the Himalayas (the Ganges and the Jamuna). The country’s land surface is therefore largely composed of alluvial silt, rendering the soil highly fertile. Historically, this has made Bangladesh an agricultural nation; although agriculture contributes only about a fifth of the national GDP, it employs three-fifths of the labor force (ADB, 2005). Bangladesh has an estimated population of 140 million (circa...
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