Textile Industries in Bangladesh and Challenges of Growth
Research Journal of Engineering Sciences ___________________________________________ ISSN 2278 – 9472 Vol. 2(2), 31-37, February (2013) Res. J. Engineering Sci.
Review Paper
Textile Industries in Bangladesh and Challenges of Growth
2
Department of Textile Engineering, Daffodil International University, BANGLADESH Faculty of Textile Clothing, Fashion andBusiness Studies, Bangladesh University of Textiles, BANGLADESH
1
Md. Mazedul Islam1, Adnan Maroof Khan1 and Md. Monirul Islam2
Available online at: www.isca.in
Received 14th January 2013, revised 2nd February 2013, accepted 15th February 2013
Abstract
The importance of the textile industry in the economy of Bangladesh is very high. The garments manufacturing sector earned $19 billion in the year to June 2012, one of the impoverished nation 's biggest industries. Currently this industry is facing great challenges in its growth rate. The major reasons for these challenges can be the global recession, unfavorable trade policies, internal security concerns, the high cost of production due to increase in the energy costs, different safety issues specially fire, etc. Depreciation of Bangladeshi Taka that significantly raised the cost of imported inputs, rise in inflation rate, and high cost of financing has also effected seriously the growth in the textile industry. As a result neither the buyers are able to visit frequently Bangladesh nor are the exporters able to travel abroad for effectively marketing their products. With an in-depth investigation it was found that the Bangladesh textile industry can be brought on top winning track if government and others individuals takes serious actions in removing or normalizing the above mentioned hurdles. Additionally, the government should provide subsidy to the textile industry, minimize the internal dispute among the exporters, withdraw the withholding and sales taxes etc. Purchasing new machinery or enhancing the quality of the existing machinery and introducing new
Review Paper
Textile Industries in Bangladesh and Challenges of Growth
2
Department of Textile Engineering, Daffodil International University, BANGLADESH Faculty of Textile Clothing, Fashion andBusiness Studies, Bangladesh University of Textiles, BANGLADESH
1
Md. Mazedul Islam1, Adnan Maroof Khan1 and Md. Monirul Islam2
Available online at: www.isca.in
Received 14th January 2013, revised 2nd February 2013, accepted 15th February 2013
Abstract
The importance of the textile industry in the economy of Bangladesh is very high. The garments manufacturing sector earned $19 billion in the year to June 2012, one of the impoverished nation 's biggest industries. Currently this industry is facing great challenges in its growth rate. The major reasons for these challenges can be the global recession, unfavorable trade policies, internal security concerns, the high cost of production due to increase in the energy costs, different safety issues specially fire, etc. Depreciation of Bangladeshi Taka that significantly raised the cost of imported inputs, rise in inflation rate, and high cost of financing has also effected seriously the growth in the textile industry. As a result neither the buyers are able to visit frequently Bangladesh nor are the exporters able to travel abroad for effectively marketing their products. With an in-depth investigation it was found that the Bangladesh textile industry can be brought on top winning track if government and others individuals takes serious actions in removing or normalizing the above mentioned hurdles. Additionally, the government should provide subsidy to the textile industry, minimize the internal dispute among the exporters, withdraw the withholding and sales taxes etc. Purchasing new machinery or enhancing the quality of the existing machinery and introducing new
References: 1. 2. 3. 4. 5. 6. 7. 8. 9. All Bangladesh Textile Mills Corporation (BTMC) (Various Issues) Annual Report (2005-2012) Challenges for Bangladesh, Asian Development Review, Bangladesh Textile Journal (2011) Bangladesh, Government of Bangladesh Economic Survey, Ministry of Finance (2011) Bloom P., Retailer power and supplier, The Journal of Industrial Economics, 33, 339-148 (2001) Textile Industry— Special Report (2009) Business Recorder Bangladesh –Special report (2010) Bangladesh Observer-Business Survey (2009) http://www.fiber2fashion.com (2010) Asian Economic Review- (2011) 10. http:// www.asiantextilejournal.com (2009) 11. http://www.epb.gov.bd (2011-2012) 12. Centre for Policy Dialogue (CPD) Bangladesh, Contribution of the RMG Sector to Bangladesh Economy, Paper 50, (2002) 13. http://www.fpcci.com.bd (2007) 14. Bangladesh Textile Today (BTT) (2011) 15. Standard and Poor’s, Textiles Industry Survey Monthly Investment (2004) International Science Congress Association 37