Prospects Of Garment Industry In Bangladesh

Topics: Industry, Fiscal year, Secondary sector of the economy Pages: 8 (1310 words) Published: March 7, 2015
Prospects of Garment Industry in Bangladesh:
1. Financial Prospect:
Over the last fifteen years or so the garments industries have emerged as the largest source of earning foreign currency.

Industry Sector:
2.5 In the industry sector, which contributed 29.7 percent of GDP, growth rate slowed down from 6.8 percent of FY08 to 5.9 percent in FY09. Within this sub-sector knitwear, rice milling, dairy products, leather products, footwear, embroidery, wooden furniture, paper and paper products, nonmetallic mineral products etc. showed substantial growth in the first six months of FY09. Despite global economic rescission, woven garments and knitwear, the country's key export industry, showed substantial growth in FY09. Exports of woven garments and knitwear achieved 14.5 and 16.2 percent growth respectively during FY09. [To illustrate these topics more specifically we can use the references of previous table no.: 3 & 4 of page no.: 05 & 06.] According to Export Promotion Bureau (EPB), Bangladesh, during the FY-2008-2009, contribution of the major export items were Ready made garment (Knit-41.31%, Woven-38.02%). In the July-November period of the current fiscal year, Bangladesh exported woven garments worth $2.13 billion and knitwear items of $2.59 billion, with the share of garments in national exports increasing. The share of RMG products reached 77.17 percent in the July-November period from 77.15 percent in July-October of the current fiscal year. The share of woven garments in the total exports of the country was 34.84 percent and that of knitwear (including sweater) was 42.34 percent. 2. Employment Prospect:

After the emergence of Bangladesh radical change has come to our garment sector. Garment industries started working from the 10's of the late century. At present there are about 3500 garment industries in the country and 80 percent of them are in Dhaka. The rest are in Chittagong and Khulna. These Industries have employed fifty lacks of people and 90 percent of them are illiterate rural women. About 80 percent of our export earning comes from this sector. Formal paid employment at end of March 2009 totalled 20,326, declined by 1,768 from the comparable 2008 period. The drop was largely dominated by the decline of 1,324 in the secondary industry followed by the declines of 544 and 12 in tertiary and primary sectors whilst the public administration industry had increased by 111 respectively.

Table-5: Employment in RMG Factories in Fiscal Years1996/97-2005/06:
Ready Made Garments, for the last couple of decades, have been the life- line of Bangladesh's economy. At the last count, the sector accounted for nearly 80 per cent of export earnings. Consequently, it provides profits for the currently surging consumer class that drives the economy further forward and jobs for hundreds of thousands of semi-skilled workers, mostly women, who in turn provide livelihood for millions

And woman entrepreneurship is practiced here from the very beginning. As one of the oldest export-oriented garment factories, the Baishakhi Garment in 1977. Still our Industries have employed fifty lacks of people and 90 percent of them are illiterate rural women. Many women hold top executive positions in RMG industry.

3. Political Prospect:
With the rise of Industrialization specially RMG sector activities of many Ministry as Ministry of Industries, Ministry of Textile & Jute, Ministry of Trade, Ministry of Foreign Affairs, Ministry of State and related Government Institutions become more pro-active in sense of overall development of the country. Many institutions raised to assist this sector like BGMEA, BKMEA, ITET and many more which act as the representative of this sector to collaborate with Government. In July 1996, 2,357 garment factories were registered with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The growth has indeed been phenomenal, since the ready-made garment industry began...
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