Stitching Success: Present and Future of Bangladesh's Garment Industry

Bangladesh's garment industry has emerged as the global leader from a maze of challenges amidst political instability and rising costs. It has sustained its importance within the global supply chain; however, future success will depend on how well it innovates and is sustainable while forming strategic partnerships, especially with India.

- Kaushal Dighavkar

The garment industry is the backbone of Bangladesh's economy, a status that has come up over the years from its roots. The roots of this industry can be traced back from the 1970s when Bangladesh gained independence. This industry over the decades has gone through several formations and has burgeoned to be a global powerhouse, whereby the country became one of the world's largest producers and exporters of garments. From modest beginnings, the industry has expanded in waves of development, driven by low labour costs, state support, and the strong international demand for ready-made garments.

The garment sector of Bangladesh has emerged as an integral segment in the global market today, with the country recognised for its manufacturing skills and competitive pricing. The leading position of Bangladesh in the global garment industry can be estimated by the view that it is the world's second-largest apparel exporter after China. This therefore places the industry at the core of not just Bangladesh's economy, but also the global garment supply chain.

Economic Importance

The garment industry in Bangladesh has remained one of the critical pillars of the country's economy, with recent data showing tremendous growth and contribution to it. Bangladesh's garment exports increased 10.27% to reach a record $47.38 billion as of 2023 from the previous year. Out of the total earnings from exports, the garment and apparel industries generate approximately 84.58% of it. Export earnings for Bangladesh, in fiscal year 2022-23, clocked in at US$ 55.56 billion, showing the mammoth contribution of the industry to the national economy. The industry is also likely to grow in the future at a compound annual growth rate of about 15%. This continuous upsurge in growth quite logically places Bangladesh as the second-largest apparel exporter in the world, following China.