Impact of Rmg Sector in Bangladesh Economy

Only available on StudyMode
  • Download(s) : 1009
  • Published : July 20, 2012
Open Document
Text Preview
Impact of RMG sector in Bangladesh economy

Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although; the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP.

Table: 1
|Major Products Export From Bangladesh And Contribution|
|to GDP |
|RMG |75.65% |
|Frozen Food |4.22% |
|Jute Goods |2.60% |
|Leather |2.19% |
|Chemical Products |1.77% |
|Raw Jute |1.21% |
|Agri Products |0.72% |
|Tea |0.06% |
|Others |11.56% |

Table: 2
|Comparative Statement On Export of RMG And Total Export Of Bangladesh | |Year |Export of RMG |Total Export of |% of RMG's to|Year |Export of RMG |Total Export of |% of RMG's to| | |(Million US $) |Bangladesh (Million |total Export | |(Million US $) |Bangladesh (Million |total Export | | | |US $) | | | |US $) | | |1983-84 |31.57 |811.00 |3.89 |1995-96 |2547.13 |3882.42 |65.61 | |1984-85 |116.20 |934.43 |12.44 |1996-97 |3001.25 |4418.28 |67.93 | |1985-86 |131.48 |819.21 |16.05 |1997-98 |3781.94 |5161.20 |73.28 | |1986-87 |298.67 |1076.61 |27.74 |1998-99 |4019.98 |5312.86 |75.67 | |1987-88 |433.92 |1231.20 |35.24 |1999-2000 |4349.41 |5752.20 |75.61 | |1988-89 |471.09 |1291.56 |36.47 |2000-2001 |4859.83 |6467.30 |75.14 | |1989-90 |624.16 |1923.70 |32.45 |2001-2002 |4583.83 |5986.09 |76.57 | |1990-91 |866.82 |1717.55 |50.47 |2002-2003 |4912.09 |6548.44 |75.01 | |1991-92 |1182.57 |1993.90 |59.31 |2003-2004 |5686.09 |7602.99 |74.79 | |1992-93 |1445.02 |2382.89 |60.64 |2004-2005 |6417.67 |8654.52 |74.15 | |1993-94 |1555.79 |2533.90 |61.40 |2005-2006 |7900.80 |10526.52 |75.06 | |1994-95 |2228.35 |3472.56 |64.17 |2006-2007 |9211.23 |12177.86 |75.64 |

Source: Various articles and Annual report of BGMEA.
The above mentioned table shows the status of RMG exports from Bangladesh to other countries of the world comparing with other goods. Every year Bangladesh earns a huge amount of foreign currencies by exporting RMG from abroad and plays a vital role in growth of GDP. According to the statistics report, Bangladesh earns $ 9211.23 million last year from RMG sector. Recently RMG sector of Bangladesh is the main item in the growth of GDP and its contribution to GDP is about 76%. In addition to its economic contribution, the expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million women into labor force. According to BGMEA, after the Liberation War of Bangladesh, in 1983 the...
tracking img