Ready-Made Garments Sector of Bangladesh: Its Growth, Contribution and Challenges

Abstract

The ready-made garments (RMG) sector has a greater potential sector than any other sector in terms of employment and foreign exchange earnings to reduce poverty and make a contribution to the national economy. Based on secondary data, the study is intended to draw the scenario of RMG industry in Bangladesh, especially the growth, contribution, and challenges. It is the largest exporting industry in Bangladesh that has experienced tremendous growth during the last 25 years. Among the people of Bangladesh, about 4 million workers are directly employed in RMG sector. Therefore, the contribution of RMG in total export is increasing day by day. At present, 83.9% of national export in Bangladesh is contributed by RMG export although it was 3.89% in 1983-1984. In fiscal year (FY) 2017-2018, the percentage of ready-made garments (RMG) contribution to gross domestic product (GDP) is 12.26% but it was only 2.74% in FY 1990-1991. So, it indicates that RMG sector is the main contributor of Bangladesh’s economy, especially in the export of the country. This sector also faces a lot of challenges, like unskilled workers, insufficient infrastructure, raw materials, energy crisis, safety issue, political crisis, and coverage of accord and alliance. To overcome these challenges, we need to take different steps from owners and major stakeholders.