
Bangladesh’s Textile Industry’s Future in The Midst of Turmoil in Politics
Millions of people are employed in Bangladesh’s textile sector, which also makes a substantial GDP contribution. It has long been a mainstay of the national economy. Bangladesh has become one of the world’s top textile suppliers to big international companies like Zara, H&M, and Primark throughout the years. A significant portion of this achievement may be credited to the policies and programs implemented by business leaders generally as well as Sheikh Hasina during her time as prime minister. But with her recent dismissal, worries about the future of the sector are mounting. Let’s talk about the development of Bangladesh’s textile industry, where it stands today, and how political unrest might affect its future expansion.

Bangladesh’s emergence as the hub for textiles
It took some time for Bangladesh to become a major player in the world textile industry. The nation’s textile sector started to take shape in the early 1980s when small-scale clothing manufacturers were established. These industries had expanded dramatically in size and number by the 1990s, partly as a result of favorable government regulations and the availability of inexpensive labor. During this time, the Multi-Fibre Arrangement (MFA) was very important since it freed Bangladesh from having to comply with strict quotas while exporting textiles to wealthy nations. The industry expanded quickly as a result, and Bangladesh became a major player in the world textile market by the early 2000s.
An overview of the textile industry in Bangladesh
Contribution To Employment And GDP
Bangladesh’s economy depends heavily on the textile and apparel sector, which generates more than 80% of its exports and adds about 11% to the nation’s GDP. As per the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the industry has a workforce of approximately 4 million individuals, with women being the majority. Important information about the textile industry’s place in the national economy may also be gleaned from its employment statistics. The job growth in the textile industry from 2001 to 2023 is shown by the following data:
Rise In Exports
Over the past 20 years, Bangladesh’s textile exports have grown impressively. Exports increased dramatically from $5 billion in 2001 to about $40 billion by 2023. This growth pattern is depicted in the graph below:

The graph displays the compound annual growth rate (CAGR) of textile exports from Bangladesh, emphasizing significant policy intervals as well as outside influences like the COVID-19 epidemic and the Rana Plaza tragedy. The information shows that exports have been rising steadily, with noticeable peaks during Sheikh Hasina’s leadership-led periods of major policy measures.
Market portion
With a market share of about 6.8%, Bangladesh is currently the second-largest garment exporter in the world, behind China. Together, the US and the EU make up more than 60% of the nation’s textile exports, making them its two main customers.

Effects of Sheikh Hasina’s ouster on the textile sector
Uncertainty in politics and investor confidence
There’s been a lot of political unrest in Bangladesh since Sheikh Hasina was ousted. Investor confidence is heavily reliant on political stability, and the textile industry is especially susceptible to political upheavals given its substantial reliance on foreign investment and global trade. If the political climate in Bangladesh becomes unstable, foreign investors and global brands would be reluctant to stay or grow their business there. The industry’s expansion has been fueled by foreign direct investment (FDI), which could decline as a result of this.
Possible alterations to trade relations
Strong trade ties have been forged by Sheikh Hasina’s administration with important international markets, especially those in the European Union and North America. Preferential trade accords, including the Generalized System of Preferences (GSP) with the EU, which let Bangladeshi products to enter these markets with lower tariffs, were secured in large part thanks to these partnerships. If the new administration doesn’t continue to participate in diplomacy to the same extent, there may be renegotiations or even a loss of these trade benefits. Bangladeshi textiles may face increased tariffs as a result, which would reduce their ability to compete on the international market.
Disruptions to the supply chain and labor unrest
Social unrest frequently results from political instability, and labor disagreements are nothing new in Bangladesh’s textile sector. There may be more hostilities between workers and industry owners as a result of Sheikh Hasina’s resignation. Sheikh Hasina had enacted various labor reforms. Unrest in the workforce may cause production schedules to be disrupted, which would delay the fulfillment of orders from outside and harm Bangladesh’s standing as a dependable supplier.
Possibilities despite obstacles
Market diversification
Although there are a lot of hazards associated with Bangladesh’s political climate, there are also chances for the business to expand its markets. To lessen its reliance on established markets in the US and the EU, the industry may investigate developing markets in Asia, Africa, and Latin America.
Investing in innovation and technology
Bangladesh’s textile sector needs to make technological and innovative investments if it wants to be competitive in a potentially more difficult global climate. Value-added products, automation, and environmentally friendly production techniques could all help the sector keep its competitive advantage in the world market.
Bolstering Domestic Supply Networks
As an alternative to relying more on imported raw materials, the industry should concentrate on fortifying its own domestic supply chains. This would reduce production costs and strengthen the industry’s resistance to interruptions in the global supply chain. Given the uncertain future of Bangladesh’s textile sector, it is critical to acknowledge the potential and difficulties that lie ahead. In a world that is changing quickly, the industry’s ability to adapt, along with smart investments and legislative backing, will be essential to guaranteeing its sustained success.
Bangladesh’s textile sector faces a critical juncture in its future. Sheikh Hasina’s removal creates a great deal of uncertainty, especially with regard to commercial relations, investor trust, and political stability. But historically, the sector has proven very resilient, rising to the occasion and seizing chances to establish itself as a major global center for textiles. To guarantee that Bangladesh’s textile sector survives the current unpredictability, workers, legislators, and industry executives must collaborate. In order to sustain its status as a top exporter of textiles in the future, Bangladesh should consider expanding its market base, allocating resources towards innovation, and fortifying its local supply chains.
References:
- https://timesofindia.indiatimes.com/life-style/fashion/buzz/future-of-bangladeshs-textile-industry-amidst-political-uncertainty/articleshow/112774329.cms
- https://apparelresources.com/business-news/manufacturing/bangladesh-garment-industry-faces-uncertainty-amidst-political-turmoil-unrest/
- https://www.fibre2fashion.com/news/textiles-policy-news/crisis-in-bangladesh-a-turning-point-for-global-apparel-supply-chains-297323-newsdetails.htm
- https://economictimes.indiatimes.com/news/international/business/bangladesh-garment-industry-faces-crisis-amid-political-unrest-and-floods/articleshow/112824030.cms?from=mdr
Millions of people are employed in Bangladesh’s textile sector, which also makes a substantial GDP contribution. It has long been a mainstay of the national economy. Bangladesh has become one of the world’s top textile suppliers to big international companies like Zara, H&M, and Primark throughout the years. A significant portion of this achievement may be credited to the policies and programs implemented by business leaders generally as well as Sheikh Hasina during her time as prime minister. But with her recent dismissal, worries about the future of the sector are mounting. Let’s talk about the development of Bangladesh’s textile industry, where it stands today, and how political unrest might affect its future expansion.

Bangladesh’s emergence as the hub for textiles
It took some time for Bangladesh to become a major player in the world textile industry. The nation’s textile sector started to take shape in the early 1980s when small-scale clothing manufacturers were established. These industries had expanded dramatically in size and number by the 1990s, partly as a result of favorable government regulations and the availability of inexpensive labor. During this time, the Multi-Fibre Arrangement (MFA) was very important since it freed Bangladesh from having to comply with strict quotas while exporting textiles to wealthy nations. The industry expanded quickly as a result, and Bangladesh became a major player in the world textile market by the early 2000s.
An overview of the textile industry in Bangladesh
Contribution To Employment And GDP
Bangladesh’s economy depends heavily on the textile and apparel sector, which generates more than 80% of its exports and adds about 11% to the nation’s GDP. As per the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the industry has a workforce of approximately 4 million individuals, with women being the majority. Important information about the textile industry’s place in the national economy may also be gleaned from its employment statistics. The job growth in the textile industry from 2001 to 2023 is shown by the following data:
Rise In Exports
Over the past 20 years, Bangladesh’s textile exports have grown impressively. Exports increased dramatically from $5 billion in 2001 to about $40 billion by 2023. This growth pattern is depicted in the graph below:

The graph displays the compound annual growth rate (CAGR) of textile exports from Bangladesh, emphasizing significant policy intervals as well as outside influences like the COVID-19 epidemic and the Rana Plaza tragedy. The information shows that exports have been rising steadily, with noticeable peaks during Sheikh Hasina’s leadership-led periods of major policy measures.
Market portion
With a market share of about 6.8%, Bangladesh is currently the second-largest garment exporter in the world, behind China. Together, the US and the EU make up more than 60% of the nation’s textile exports, making them its two main customers.

Effects of Sheikh Hasina’s ouster on the textile sector
Uncertainty in politics and investor confidence
There’s been a lot of political unrest in Bangladesh since Sheikh Hasina was ousted. Investor confidence is heavily reliant on political stability, and the textile industry is especially susceptible to political upheavals given its substantial reliance on foreign investment and global trade. If the political climate in Bangladesh becomes unstable, foreign investors and global brands would be reluctant to stay or grow their business there. The industry’s expansion has been fueled by foreign direct investment (FDI), which could decline as a result of this.
Possible alterations to trade relations
Strong trade ties have been forged by Sheikh Hasina’s administration with important international markets, especially those in the European Union and North America. Preferential trade accords, including the Generalized System of Preferences (GSP) with the EU, which let Bangladeshi products to enter these markets with lower tariffs, were secured in large part thanks to these partnerships. If the new administration doesn’t continue to participate in diplomacy to the same extent, there may be renegotiations or even a loss of these trade benefits. Bangladeshi textiles may face increased tariffs as a result, which would reduce their ability to compete on the international market.
Disruptions to the supply chain and labor unrest
Social unrest frequently results from political instability, and labor disagreements are nothing new in Bangladesh’s textile sector. There may be more hostilities between workers and industry owners as a result of Sheikh Hasina’s resignation. Sheikh Hasina had enacted various labor reforms. Unrest in the workforce may cause production schedules to be disrupted, which would delay the fulfillment of orders from outside and harm Bangladesh’s standing as a dependable supplier.
Possibilities despite obstacles
Market diversification
Although there are a lot of hazards associated with Bangladesh’s political climate, there are also chances for the business to expand its markets. To lessen its reliance on established markets in the US and the EU, the industry may investigate developing markets in Asia, Africa, and Latin America.
Investing in innovation and technology
Bangladesh’s textile sector needs to make technological and innovative investments if it wants to be competitive in a potentially more difficult global climate. Value-added products, automation, and environmentally friendly production techniques could all help the sector keep its competitive advantage in the world market.
Bolstering Domestic Supply Networks
As an alternative to relying more on imported raw materials, the industry should concentrate on fortifying its own domestic supply chains. This would reduce production costs and strengthen the industry’s resistance to interruptions in the global supply chain. Given the uncertain future of Bangladesh’s textile sector, it is critical to acknowledge the potential and difficulties that lie ahead. In a world that is changing quickly, the industry’s ability to adapt, along with smart investments and legislative backing, will be essential to guaranteeing its sustained success.
Bangladesh’s textile sector faces a critical juncture in its future. Sheikh Hasina’s removal creates a great deal of uncertainty, especially with regard to commercial relations, investor trust, and political stability. But historically, the sector has proven very resilient, rising to the occasion and seizing chances to establish itself as a major global center for textiles. To guarantee that Bangladesh’s textile sector survives the current unpredictability, workers, legislators, and industry executives must collaborate. In order to sustain its status as a top exporter of textiles in the future, Bangladesh should consider expanding its market base, allocating resources towards innovation, and fortifying its local supply chains.
References:
- https://timesofindia.indiatimes.com/life-style/fashion/buzz/future-of-bangladeshs-textile-industry-amidst-political-uncertainty/articleshow/112774329.cms
- https://apparelresources.com/business-news/manufacturing/bangladesh-garment-industry-faces-uncertainty-amidst-political-turmoil-unrest/
- https://www.fibre2fashion.com/news/textiles-policy-news/crisis-in-bangladesh-a-turning-point-for-global-apparel-supply-chains-297323-newsdetails.htm
- https://economictimes.indiatimes.com/news/international/business/bangladesh-garment-industry-faces-crisis-amid-political-unrest-and-floods/articleshow/112824030.cms?from=mdr