Bangladesh’s fashion industry is home to several well-known fashion labels, and the country is the world’s second-largest garment exporter behind China.

However, it is the low production prices that drive retail corporations to the country, not the quality and efficiency of the manufacture. Employees face extremely low earnings and unsafe working conditions as a result of this.

Furthermore, people have died as a result of terrible working conditions, which have resulted in factories collapsing. Those who did not perish in the plant were slain during strikes demanding better working conditions and pay.

According to Business Insider, Bangladesh sourcing garments account for around “$20 billion (£15,333,308.00) in exports,” with “59 percent” going to the European Union, “26%” to the United States, and “5%” to Canada.

However, as a result of Covid-19’s influence on Bangladesh’s textile industry, several designer labels repays factories huge sums.

The position of Bangladesh in regards to garment export

Bangladesh is the world’s third-largest textile and clothing exporter. Over the last five years, its T&A exports have grown at a positive CAGR of 9%, reaching $34.4 billion in 2016, while imports have grown at a CAGR of 7%, reaching $10.3 billion back in 2016. In 2016, Bangladesh’s apparel and textile trade balance were $24.1 billion positive.

Bangladesh imports the most cotton textiles, accounting for 55 percent of total garment and textile imports (2016). Man-made textiles, others, and garments come in second, third, and fourth, with 35.0 percent, 6.8 percent, and 3.2 percent, respectively. Bangladesh imported 94 percent of its textile and apparel from the top ten suppliers. When it comes to textile and garment sourcing from Asia, China is the leading supplier, with 58 percent of the market. India and Pakistan rank next, with 19 percent and 6% of the market, respectively.

With a value of roughly $2 billion in 2016, India is Bangladesh’s second-largest exporter of apparel and textile products. In the last five years, it has grown at a 4% annual rate.

Cotton textiles account for the majority of India’s T&A exports to Bangladesh, accounting for 77% of all exports. Man-made textiles and garments come in second and third, respectively with 17 percent and 4% of the market.

Where Bangladesh does stands in terms of garment outsourcing?

Bangladesh is the world’s biggest garment exporter. Its apparel exports grew at a CAGR of 13% from $4.8 billion in 2000 to $32.5 billion in 2016, and are likely to expand in a bigger way in the future. Increased demand for intermediate textile items, such as fabric and yarn, would result from Bangladesh’s rapid rise in garment exports. To bridge the demand-supply gap, Bangladesh now imports its yarn and fabric needs from China, India, and other countries. For a long time, it has been an important export market for man-made textiles and cotton garments.

However, numerous new investments are anticipated in Bangladesh sourcing weaving and spinning sectors in the coming years, with many large companies expressing interest in establishing spinning and weaving operations there.

Bangladesh is predicted to become a self-sufficient textile and apparel center within the next ten years by emphasizing more on the distribution channels. This is projected to reduce China’s and India’s export potential. As a result, while Bangladesh is a major outsourcing market for garments and textiles, it will be critical for Indian companies whose primary export market is Bangladesh to seek out other markets in the coming years.

The reason behind the growth of the textile industry in Bangladesh

Bangladesh’s hardworking labor force is the primary reason for the textile industry’s growth. To meet the deadline, they put in extra hours of labor. As a result, the country’s per capita income, as well as people’s living conditions, has increased in recent years. Second, in the readymade clothes market, the country gained a competitive advantage over the United States and European countries.

Three essential causes have increased Bangladesh’s textile industry’s growth. The country is rich in resources, opportunities, and helpful government policies. A huge number of labor laborers may be found in Bangladesh. Natural gas and energy are also inexpensive. Bangladesh has an edge in creating labor-intensive items because of its large population. All these factors are taken into consideration when searching for sourcing from Asia nations. Bangladesh excels in these factors and hence, remains a popular and important nation for textile exportation.

These prospects were aided by government measures that aided the textile industry’s rise in Bangladesh. Foreign investment was encouraged by the government’s liberal policies. Bangladesh’s garment industry is well-known and occupies a significant position in the global market today. Woven apparels, textile items, and knitwear are all part of the country’s textile sector. These products are the most profitable for the country’s export earnings.

The most common exports

Polyester fabrics, man-made fiber fabrics, viscose thread fabrics, PV fabrics, and other textiles make up the majority of its exports. Skirts, shorts, woven/ knitted shirts, trousers, sweaters, tops, and sportswear clothing make up the majority of apparel exports. A vast number of people are employed in the handloom sector, which also manufactures fabrics for the local market. Despite being one of Bangladesh’s fastest-growing and largest industries, it confronts some difficulties.

The key behind the survival of the textile industry during the time of crisis

The textile industry in Bangladesh has survived over the years due to the availability of natural gas in abundance. Add to it the high energy of people and cheap labor rate that makes the Bangladesh sourcing textile industry flourishes.  However, in recent years, all of the bountiful resources that have served as the textile industry’s backbone have become unfriendly. Synthetic fibers and Raw cotton are the most fundamental raw materials in the spinning industry. Unfortunately, none of these products is manufactured in Bangladesh.

The final takeaway

It is widely acknowledged that Bangladesh’s textile and apparel industries have a bright future. Foreign money received through the readymade garment and textile sourcing from Asia accounts for a significant portion of national income. The first aim is to find appropriate answers to sensitive issues and to adopt methods that will help Bangladesh’s textile sector flourish.

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