The textile and apparel Textile Industry of Bangladeshis not merely an economic sector; it is the very spine of the country’s industrial development, export performance, and socio-economic transformation. Over the past four decades, Bangladesh has emerged from relative obscurity to become one of the world’s leading hubs for textile and ready-made garment (RMG) production. Today, when global fashion brands source apparel at scale, Bangladesh is almost invariably part of the conversation. This rise has been driven by a unique combination of competitive labor costs, entrepreneurial resilience, strategic policy support, and deep integration into global supply chains.
This article explores the evolution, structure, economic contribution, challenges, and future prospects of Bangladesh’s textile industry, offering a comprehensive view of how this sector has shaped—and continues to shape—the nation.
Historical Evolution of the Textile Industry of Bangladesh
Textile production in the region that is now Bangladesh has a history stretching back centuries. During the Mughal era, Bengal was globally renowned for its fine muslin fabrics, which were exported to Europe, the Middle East, and beyond. Dhaka muslin, in particular, was considered a luxury item among aristocracy and royalty. However, colonial policies during British rule systematically dismantled indigenous textile manufacturing, turning Bengal into a supplier of raw materials rather than finished goods.
The modern textile industry began to take shape after Bangladesh’s independence in 1971. In the early years, the economy struggled with limited industrial capacity, capital shortages, and infrastructure constraints. The turning point came in the late 1970s and early 1980s, when the government adopted export-oriented industrial policies and encouraged private investment in manufacturing. The introduction of the Multi-Fibre Arrangement (MFA) in global trade further created opportunities for countries like Bangladesh to enter the apparel export market.
By leveraging quota advantages, joint ventures with foreign firms, and a rapidly expanding workforce, Bangladesh laid the foundation for what would become one of the world’s largest garment industries.
Structure of the Textile and Apparel Sector
The textile industry in Bangladesh is vertically integrated, encompassing several interconnected sub-sectors. Each plays a crucial role in transforming raw materials into finished apparel ready for export.
Spinning Sector
The spinning sector converts raw cotton and synthetic fibers into yarn. Over the years, Bangladesh has significantly expanded its spinning capacity, reducing dependence on imported yarn. Although the country still imports a large portion of its raw cotton, local spinning mills have improved supply chain efficiency and reduced lead times for manufacturers.
Weaving and Knitting
Weaving mills produce woven fabrics, while knitting units specialize in knit fabrics such as t-shirts and sportswear. Bangladesh is particularly strong in knitwear production, supplying major global brands with high-volume orders. The rapid growth of circular knitting and flat knitting units has enabled the country to diversify product offerings.
Dyeing, Printing, and Finishing
This segment adds value by enhancing fabric quality, color, and performance characteristics. Dyeing and finishing processes are capital-intensive and environmentally sensitive, requiring compliance with strict international standards. In recent years, Bangladeshi factories have invested heavily in modern machinery and effluent treatment plants to meet buyer requirements.
Ready-Made Garments (RMG) : Textile Industry of Bangladesh
The RMG sector is the crown jewel of Bangladesh’s textile industry. It includes the manufacturing of shirts, trousers, jackets, denim products, lingerie, and other apparel items. The sector employs millions of workers and accounts for the overwhelming majority of the country’s export earnings.
Economic Contribution and Employment
The textile and apparel industry is the single largest contributor to Bangladesh’s economy. It accounts for more than 80 percent of total export earnings and contributes significantly to GDP growth. The sector has been instrumental in transforming Bangladesh into a lower-middle-income country.
Employment generation is perhaps the most profound impact of the industry. The sector employs over four million workers directly, the majority of whom are women from rural and semi-urban backgrounds. This large-scale female employment has had far-reaching social implications, including increased household incomes, improved access to education for children, and greater participation of women in decision-making processes.
In addition to direct employment, millions more depend indirectly on the textile industry through transportation, packaging, logistics, banking, insurance, and ancillary services. Few industries in the country have such a wide economic footprint.
Bangladesh in the Global Apparel Market
Bangladesh is currently the second-largest exporter of ready-made garments in the world, trailing only China. Its primary export destinations include the European Union, the United States, Canada, Japan, and Australia. The country enjoys preferential market access in several regions, particularly in the EU under the Everything But Arms (EBA) initiative.
Global buyers are drawn to Bangladesh for its competitive pricing, production scale, and increasingly reliable compliance standards. Over time, manufacturers have moved beyond basic items to produce more complex and higher-value garments, including outerwear, denim, and performance apparel.
The industry’s integration into global value chains has also encouraged knowledge transfer, technology adoption, and improvements in management practices.
Compliance, Safety, and Sustainability
Factory safety and labor compliance became global focal points following major industrial accidents in the early 2010s. These events prompted unprecedented reforms across the industry. International initiatives, along with local regulatory efforts, led to extensive factory inspections, structural upgrades, and improvements in occupational safety.
Today, Bangladesh hosts one of the largest numbers of green garment factories in the world. Many factories are certified by internationally recognized standards and feature energy-efficient machinery, water recycling systems, and environmentally responsible production processes.
Sustainability is no longer optional; it is a competitive necessity. As global brands increasingly prioritize ethical sourcing and environmental stewardship, Bangladeshi manufacturers are aligning themselves with these expectations.
Challenges Facing the Industry
Despite its success, the textile industry in Bangladesh faces several structural and external challenges.
One major issue is dependence on imported raw materials, particularly cotton. Fluctuations in global commodity prices and supply chain disruptions can impact production costs and timelines. Infrastructure constraints, such as port congestion and energy supply issues, also pose operational challenges.
Rising labor costs, while beneficial from a social perspective, require manufacturers to improve productivity and efficiency to remain competitive. Additionally, increasing competition from other garment-producing countries, such as Vietnam and Ethiopia, adds pressure to innovate and diversify.
Environmental concerns represent another critical challenge. Textile production is resource-intensive, and failure to manage waste and emissions effectively can lead to regulatory and reputational risks.
Digital Transformation and Technological Advancement
To sustain growth, the industry is embracing digital transformation. Automation, enterprise resource planning (ERP) systems, and data-driven production planning are becoming more common in modern factories. These technologies help reduce waste, improve quality control, and shorten lead times.
E-commerce and digital marketing have also opened new avenues for Bangladeshi apparel producers, particularly those looking to develop their own brands rather than relying solely on contract manufacturing.
Future Prospects and Strategic Direction
The future of Bangladesh’s textile industry will depend on its ability to move up the value chain. This includes producing higher-end garments, investing in design and branding, and expanding into technical textiles and man-made fiber products.
Skill development will be a decisive factor. Training workers and managers in advanced manufacturing techniques, compliance management, and digital tools will enhance productivity and resilience.
Policy support, infrastructure investment, and continued collaboration between the public and private sectors will remain essential. With the right strategic focus, Bangladesh is well-positioned to maintain its global leadership in apparel manufacturing.
Conclusion
The textile industry of Bangladesh is a remarkable story of transformation, resilience, and global integration. From its historical roots in fine fabrics to its current status as a global apparel powerhouse, the sector has played a central role in shaping the nation’s economic and social landscape.
While challenges persist, the industry’s capacity for adaptation and innovation offers strong reasons for optimism. As sustainability, technology, and value addition take center stage, Bangladesh’s textile industry stands ready to redefine its role in the global market—not merely as a low-cost producer, but as a responsible, competitive, and forward-looking manufacturing leader.