Textile is one of the most important sectors of Bangladesh. In 1978, there were only 9 garment manufacturing industries oriented on exports. A total of only $1 million was generated from them. Among these 9 garment manufacturers some were very small who produced garments for the local market only. Even after the end of 1982, only 47 garment manufacturing units were developed in Bangladesh.
Figure 1: Garment export of Bangladesh Textile Industry
(Source: https://www.hktdc.com/resources/MI_Portal/Article/rp/2013/10/459921/1380698232202_Bangladesh1_459921.jpg)
The breakthrough happened within the duration of 1984-1985. In only one year, the number of factories increased to nearly 600. When the year 1999 is considered, there were 3000 garment factories. Today this number is 5500 factories. There were several reasons behind it. Bangladesh has got a “GATT Approved multi fibre agreement” which had increased the exports initially. It also got a preferential access in the Europe. These were the external reasons of growth.
Figure 2: Export of Bangladesh
(Source: https://www.researchgate.net/profile/Rashedul-Kabir-2/publication/305619166/figure/fig2/AS:387684225830914@1469442530790/Export-Pie-of-Bangladesh-FY-2014-15.png)
There are several internal reasons of growth of this industry. A 5% cash incentive was provided to the sector. Import duties were not imposed on the import of textile raw materials. The warehouse facilities were bounded. The rate of interest for the loan of this industry was also low in the country. Several joint venture facilities were provided in the industry. The duty tax on machinery was also low. The textile industry got a cheap labour and the assistance of government for the growth of the industry. The human resource was skilled in this field. An integrated supply chain management was facilitated. The knit sector has received extra export values than woven. An increase can be observed from June 2013 to July 2013 which is an increase from $2705.50 million to $3024.30 million. 75% of export revenue was generated from the textile industry. The background of textile industry in Bangladesh was quite impressive and the growth was rapid when the time duration is considered.
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