Bangladesh's Reliance on Garment Exports
CHART: Bangladesh exports for apparel products and opthers 2019-202
In the fiscal year 2022-23, apparel exports (HS codes 61-64) constituted 89% of Bangladesh’s total exports, marking an increase from 87% in 2021-22. Garment exports experienced a notable 67% increase from 2019-20 to 2022-23. Bangladesh’s economic resilience is evident, notably in its thriving garment industry. However, there is a pressing need for diversification and a shift away from price-driven competition towards promoting innovation. This strategic move is crucial for ensuring sustained long-term economic growth and enhancing competitiveness on a global scale.
Bangladesh Industrial Development
Bangladesh is a developing country with a population of over 160 million people. The economy is based on agriculture, manufacturing, and services.
Agriculture is the largest sector of the economy, accounting for about 15% of GDP and employing about 40% of the workforce. The main crops are rice, wheat, jute, and tea.
Manufacturing is the second largest sector of the economy, accounting for about 25% of GDP and employing about 20% of the workforce. The main manufactured goods are textiles, garments, leather goods, and pharmaceuticals.
Services is the fastest-growing sector of the economy, accounting for about 60% of GDP and employing about 40% of the workforce. The main services are transportation, communication, and financial services.
Logistics is an important part of the economy, as Bangladesh is a major trading nation. The country has a well-developed transportation network, including roads, railways, and waterways.
Industrial estates are playing an increasingly important role in the development of manufacturing and logistics in Bangladesh. Industrial estates are large areas of land that have been developed with the necessary infrastructure, such as roads, power, water, and telecommunications. They also often have shared facilities, such as warehouses, office space, and training centers. This makes it easier and more attractive for businesses to locate in industrial estates.
There are currently over 100 industrial estates operating in Bangladesh. The largest industrial estates are located near Dhaka, the capital city. These estates are home to a variety of manufacturing and logistics businesses, including textile mills, garment factories, and chemical plants.
The government is committed to developing the industrial sector in Bangladesh. The government believes that industrial development is essential for the country’s economic growth and poverty reduction. The development of industrial estates is seen as a key part of this strategy.
The government has implemented a number of policies to support the development of industrial estates. These policies include providing tax breaks and other incentives to businesses that locate in industrial estates, and improving the infrastructure in industrial estates.
The development of industrial estates has had a positive impact on the economy of Bangladesh. Industrial estates have created jobs, boosted exports, and attracted foreign investment. They have also helped to improve the living standards of the people of Bangladesh.
The future of the industrial sector in Bangladesh is bright. The country has a young and growing population, a strategic location, and a low-cost workforce. With the right policies in place, Bangladesh can become a major manufacturing hub in the region.
