The fastest growing industry in
Bangladesh with Readymade Garments (RMG) accounting for more than 75% of total
exports.
Bangladesh is best placed in the region for textiles
and garments because of cheap labor and trade status with the EU.
Government
incentives for the spinning and weaving industries include a 15% cash subsidy
of the fabric cost to exporters sourcing fabrics locally.
There
is a huge fabric demand supply gap in the RMG industry which is being me by imports.
Thus the potential for backward linkage industry is enormous.
RMG
and Backward Linkage :
The phenomenal growth in RMG was experienced
in the last decade. With about 2,600 factories and a workforce of 1.4 million,
RMG jointly with knitwear accounted for more than 70% of total investments in
the manufacturing sector during the first half of the 1990's.
