While agriculture for domestic consumption is Bangladeshs largest employment sector, the

money gained from exporting textiles is the single greatest source of economic growth in
Bangladesh. Exports of textiles, clothing, and ready-made garments accounted for 77% of
Bangladeshs total merchandise exports in 2002.[1] Only 5% of textile factories are owned by
foreign investors, with most of the production being controlled by local investors.[2]

History of textile production in Bangladesh

Immediately after the founding of Bangladesh, tea and jute were the most export-oriented
sectors. But with the constant threat of flooding, declining jute fiber prices and a significant
decrease in world demand, the contribution of the jute sector to the countrys economy has
deteriorated.[3] The garment industry in Bangladesh became the main export sector and a major
source of foreign exchange starting in 1980, and exported about $5 billion USD in 2002.[4]
The industry employs about 3 million workers of whom 90% are women.[5] Two non-market
factors have played a crucial role in ensuring the garment sectors continual success namely (a)
quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b)
preferential market access to European markets.[6]
Until the liberation of Bangladesh, the textile sector was primarily an import-substitution industry.
It began exporting ready-made garments (RMG) including woven, knitted, and sweater
garments in 1978, which grew spectacurlarly during the next two and a half decades-from
US$3.5 million in 1981 to US$10.7 billion in FY 2007. Apparel exports grew, but initially, the
RMG industry was not adequately supported by the growth up and down the domestic supply
chain (e.g., spinning, weaving, knitting, fabric processing, and the accessories industries). Until
FY 1994, Bangladesh's RMG industry was mostly dependent on imported fabrics-the Primary
Textile Sector (PTS) was not producing the necessary fabrics and yarn.
[edit]Bangladesh

Textile Mills Corporation (BTMC)

Bangladesh Textile Mills Corporation was brought into existence on March 26, 1972 with the
promulgation of the BIE order, 1972 and started its formal function from July 1972. At present,
[when?]
18 textile mills (22 units) are in operation under service charge system and producing
different counts of cotton yarn and polyester yarn in the form of 32/1 to 80/1. Another 11 mills
are under process in operation.[7]
[edit]Effect

of the Agreement on Textiles and Clothing

From 1995-2005 the WTO Agreement on Textiles and Clothing (ATC) was in effect, wherein
more industrialized countries consented to export fewer textiles while less industrialized
countries enjoyed increased quotas for exporting their textiles.[1] Throughout the 10 year
agreement, Bangladeshs economy benefited from quota-free access to European markets and
desirable quotas for the American markets.[2]

export market

USA (textile)

USA (clothing)

EU (textile)

EU (clothing)

market share in 1995

<3%

4%

<3%

3%

market share in 2004

3%

2%

3%

4%

As the above table shows, the market shares for Bangladeshi textiles in the USA and both
textiles and clothing in the European Union have changed during the time period of the ATC.[8] It
is uncertain whether these favorable export markets will remain since the expiration of the ATC
in 2005.[9] Textile exports from Bangladesh to the United States did increase by 10% in 2009.
[10]
Currently, the textile mills provide 70% of national exports. This proportion is even higher in
Bangladesh. In Bangladesh, the number of employed workers in the textile industry increased
by 400 000 in 1990 to 2 million in 2004, and the number of enterprises from 800 to 4000. Nine
out of ten people employed in the industry are women. In general, the state of the textile
industry depends on well-being of 10-12 million people in Bangladesh. By IMF estimates, as a
result of the abolition of quota exports of Bangladesh will be reduced by 25%.[citation needed]
[edit]Ready-made

garments

In the 1980s, the RMG market started its journey. The hurdles of the Multi Fibre Arrangement
(MFA) quotas in 1985 and the Harkin Bill in 1994 were great challenges for the industry, as were
the phasing out of MFA quotas in 2004. Although there was concern[by whom?] that the MFA phaseout would shut down the industry, the Bangladesh textile sector actually grew tremendously
after 2004 and reached an export turnover of US$10.7 billion in FY 2007. Bangladesh's export
trade is dominated by the RMG industry. The sector currently employs 2.5 million peopleabout
40% of total manufacturing (85% of these employees are women)and accounts for 76% of the
country's export earnings and 10% of its GDP.
[edit]Major

market

Bangladesh was the sixth largest exporter of apparel in the world after china,the EU,Hong
Kong,Turkey and India in 2006.[citation needed] In 2006 Bangladesh's share in the world apparel
exports was 2.8%.The US was the largest single market with US$3.23 billion in exports, a 30%
share in 2007. Today, the US remains the largest market for Bangladesh's woven garments
taking US$2.42 billion, a 47% share of Bangladesh's total woven exports. The European Union
remains the largest regional destination - Bangladesh exported US$5.36 billion in apparel; 50%
of their total apparel exports. The EU took a 61% share of Bangladeshi knitwear with US$3.36
billion exports. Currently Bangladesh is now second largest ready made garments manufacturer

after china, by the next five years Bangladesh will become largest ready made garments
manufacturer.[citation needed]
[edit]Employment

and labor

Bangladeshs garment exports mainly to the US and Europe make up nearly 80% of the
countrys export income.[citation needed] The country has more than 4,000 factories employing
between two and three million workers. The industry currently employs 1.5 million workers,
approximately 80% of whom are women, many working in hazardous social conditions. It has
been a major source of employment for rural migrant women in a country that has increasingly
limited rural livelihood options, and where women migrants have been largely excluded from
formal work in the cities.
[edit]Education

in textile sector

Mawlana Bhashani Science and Technology University (MBSTU) first run B.Sc in Textile
Engineering program in the year 2006 in the University level.Besides Bangladesh University of
Textiles (Butex)is public university in Bangladesh was established on 22 December 2010 by a
ordinance of Education Ministry, though it has glorious history starting as a weaving school
under British colonial rule in 1921. Now the University offers graduation courses in
Environmental Science & pollution control & Production Engineering. Khulna University of
Engineering and Technology (KUET) is also going to start B.Sc in Textile Engineering for
session 2012-2013.
There are 4 Government Textile Engineering College which offers B.Sc. in Textile Engineering
course including specialization in Yarn Manufacturing, Fabric Manufacturing, Wet Processing,
Garments Manufacturing and Fashion Design. The colleges are as below:
1. Begumgonj Textile Engineering College, Noakhali
2. Pabna Textile Engineering College
3. Textile Engineering College, Chittagong
4. Abdur Rab Seriniabad Textile Engineering College, Barisal
BGMEA University of Fashion and Technology (BUFT) is another university, started functioning
in 2000 and was affiliated to the National University, Bangladesh in 2001. BUFT is conducting 2
years MBA course in Apparel Merchandising and 4 years B.Sc (Hons) course in Apparel
Manufacture & Technology (AMT), B.Sc (Hons) in Knitwear Manufacture & Technology (KMT)
and B.Sc (Hons) in Fashion Design & Technology (FDT). It also have some Diploma courses.
The National Institute of Fashion Technology(NIFT)is another institute in Bangladesh.