Contribution of Textile and RMG Sector in Bangladesh Economy

Last Updated on 25/01/2021

Contribution of Textile and RMG Sector in Bangladesh Economy

Md. Noor Hossain
B.Sc Engg.(Textile): BUTex, MBA:DU;
Merchandiser: Epyllion Group
Email: noor.butex@gmail.com

Introduction:
It’s very perplexing to the Textilians regarding the Contribution of Textile and RMG sector in Bangladesh Economy. Sometimes we mix the contribution of Export with the contribution in GDP.

Composition of export volume of Bangladesh:

1. Total Export: $33.67 Billion (2019-20 Fiscal Year)
2. RMG Export: $27.95 Billion (2019-20 Fiscal Year)

Note: In this article, formula applied for fiscal year 2012-13

Export in fiscal year 2012-13:

1. Total Export: $26.25 Billion (2012-13 Fiscal Year)
2. RMG Export: $21.52 Billion (2012-13 Fiscal year)

Composition of RMG Export: 

1. Knit Sector: $10.48 Billion &
2. Woven Sector: $11.04 Billion (FY: 2012-13)

Composition in Percentage of Total Export:

• Textile: 81.39% (Knit: 39.89% & Woven: 41.50%)
• Specialized Textiles: 0.75%
• Frozen Food: 2.75%
• Jute & Jute goods: 4.9%
• Leather: 2.6%
• Agri- Product: 1.5%
• Chemicals: 0.5%
• Others: 5.6%

Composition of GDP in Bangladesh:

• Total GDP: $122.7 Billion (FY: 2012)
• Service: 53%
• Industry: 28.6%
• Agriculture: 18.4 %

Contribution of Textile and RMG sector to GDP of Bangladesh:
Contribution of RMG sector to GDP in Bangladesh is Approx 18%. As I don’t find any exact figure of Contribution of RMG sector to GDP of Bangladesh. But If we calculate it from raw data then we can easily find out a rational figure. If we consider 82% of all export is RMG sector then the percentage becomes 23, (122.7*28.6%*82% = 28.77, 28.77/122.7*100 = 23.44%). But we should keep in mind that all textile industry is not export oriented. So its very rational to accept it as 18%. Another example is that total approx GDP $122.7 Billion and total Export of RMG sector 21.52 Billion, then Contribution becomes 17.53% . So we can easily consider it as 18 percentage as we don’t have any exact figure for it.

References:

1. https://www.bgmea.com.bd/
2. https://en.wikipedia.org/wiki/Textile_industry_in_Bangladesh
3. https://bkmea.com/

Mazharul Islam Kiron

Founder & Editor of Textile Learner. He is a Textile Consultant, Blogger & Entrepreneur. He is working as a textile consultant in several local and international companies. He is also a contributor of Wikipedia.

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