| Overview
of Bangladesh Textile Industry
Textiles
have been an extremely important part of Bangladesh's economy for
a very long time for a number of reasons. The textile industry is
concerned with meeting the demand for clothing, which is a basic
necessity of life. It is an industry that is more labor intensive
than any other in Bangladesh, and thus plays a critical role in
providing employment for people. Currently, the textile industry
accounts for 45% of all industrial employment in the country and
contributes 5% of the total national income.
However,
although the industry is one of the largest in Bangladesh and is
still expanding, it faces serious problems, principally because
the country does not produce enough of the raw materials necessary,
unfavorable trade policies, and inadequate incentives for expansion.
As a result, Bangladesh's textile industry relies heavily on imports,
and the country does not earn as much foreign exchange from its
textile industry as it should.
History of the Textile Industry in
Bangladesh
Traditionally, artisans working in small groups, in what are often
referred to as cottage industries, produced most of the textile in
the sub-continent. There were many such artisans in the area that
was to become Bangladesh. In fact, from prehistoric times until the
Industrial Revolution in the eighteenth century, East Bengal was self-sufficient
in textiles. Its people produced Muslin, Jamdani, and various cotton
and silk fabrics. These were all well regarded even beyond the region
as they were manufactured by very skilled craftsmen.
The material produced by the artisans of Bengal
started facing vigorous competition beginning in the eighteenth
century after the growth of mechanized textile mills in the English
Midlands. This eventually led to a great decline in the number of
Bengali workers skilled enough to produce such high quality fabrics.
According to popularly held beliefs, as the region's spinners and
weavers meant competition for their emerging textile industry, the
British imperialists responded by trying to force the artisans to
stop production. They were said to have sometimes used methods as
harsh as cutting off the thumbs of the craftsmen so they would never
be able to spin or weave again.
Not only were huge amounts of fabric produced
in Bengal, the area was also a prime producer of the indigo plant,
from which the indigo dye was extracted. This natural dye was widely
used before the advent of chemical dyes in the nineteenth century.
In fact, the rich blue color provided by the dye is still sometimes
used for dyeing denim. Bengali dye masters had special recipes for
producing the desired colors, just as chefs have recipes for achieving
desired flavors. However, as was the case with the traditional handloom
fabrics, indigo dye production also gradually declined.
The problems of the indigo industry were principally a result of
two factors. First, because indigo was a cash crop, the British
administrators in this part of the empire forced farmers to grow
the indigo plant in order to increase the administrators' profits.
Unfortunately, the indigo plant is nitrogen depleting and thus exhausted
the soil very quickly. The farmers received little real income from
the crop since the British kept most of the profits, and in times
of economic hardship, such as when the indigo price fell, they were
unable to survive by eating their produce, unlike farmers who grew
staples such as rice or wheat.
Another reason for indigo's gradual disappearance as a dye stuff
was the unpredictable nature of the plant. Sometimes one farmer
would have a good harvest, while his neighbor would not be able
to produce anything. The combination of poor yields and the unpredictability
of the crop gradually led farmers to cease growing the plant and
moving on to other, more profitable crops.
The fabric produced and dyed in British factories
flooded the Indian markets. In time, its importation became one
of the points of contention in the growing Independence Movement
of the Sub-Continent. As separation from Great Britain was becoming
a foreseeable reality and local production again profitable, the
textile industry was reorganized as new methods of production were
adopted. Water, a necessity for the chemical processes involved
in processing the modern dyes now used, was abundant in East Bengal.
This contributed to the establishment of mechanized textile factories
in the area.
However, after 1947 and the partition of East and West Pakistan
from India, most of the capital and resources of Pakistan came under
the control of West Pakistanis. The textile industry thus stagnated
in East Pakistan as momentum for development shifted from the eastern
part of the country to the west. The west also grew more cotton
than the east, which was used as a plea for developing the industry
in the west instead of in the east. The majority of all industries
in the east were also owned by West Pakistani industrialists.
When Bangladesh gained its independence from Pakistan in 1971, the
new government nationalized the textile industry, as it did with
many other businesses in which West Pakistanis had been the principal
owners. Although there were some Bangladeshi industrialists, they
did not form a large or politically powerful group and thus had
to surrender control of their factories to the government as well.
All of the country's textile factories were then nationalized and
organized under the Bangladesh Textile Mills Corporation, or BTMC.
The industry remained under the control of the BTMC until 1982-83.
Bureaucratic obstacles combined with other problems such as low
productivity in the labor force, lack of planning, indiscipline,
lack of accountability, and poor machine maintenance and operation
resulted in a lack of profits.
The government thus gradually denationalized the production of textiles.
Factories were privatized, beginning with the dyeing and weaving
units. Since that time, much of the industry has been privatized
through auctions and other means.
The textile industry has been the catalyst for industrialization
in numerous countries. For example, in England, the Industrial Revolution
with the new development in coal and steel led to the establishment
of a mass textile industry, which catalyzed the industrialization
process in the eighteenth century. Similarly textiles played a major
role in the industrialization of Japan, South Korea, Taiwan, Hong
Kong, and Indonesia. The same has been true to a certain degree
in this country. After privatization, the quality of the fabrics
produced improved significantly, leading to a great increase in
the demand for Bangladeshi textiles in both the international market,
as well as the export oriented garment industry of Bangladesh. This
launched the industry into a period of rapid growth that is continuing
at present.
The Production of Textiles
The textile industry has seen the application
of many new technologies over the centuries. However, the basic
steps have remained the same. What is known as the textile industry
includes all the steps necessary to transform fiber into fabric
that is ready for stitching, sold either in the market or used in
the RMG, or ready made garment, sector. These basic steps are spinning,
weaving or knitting, and a combination of dyeing, printing and finishing.
Spinning
The principal materials used in the spinning sub-sector
are raw cotton and synthetic fibers such as viscose and polyester
staple fibers. None of these materials, however, are produced in
Bangladesh on a large enough scale to supply a significant part
of the demand. The reasons for this are complex.
Cotton needs to be grown in fields, and then ginned, which is the
removal of seeds from cotton. At present, the cotton produced in
Bangladesh is of an acceptable standard. However, the increased
cultivation of cotton in this country is not feasible because the
crop requires large amounts of land for a substantial yield. In
overcrowded Bangladesh, farmers choose to grow rice over cotton.
Locally grown cotton currently meets only 4-5% of the total requirement.
The remaining 95% of the cotton needed must be imported at very
high prices. The production of the synthetic/man-made fibers used
in the textile industry requires fairly advanced technology and
investment.
Once the raw materials have been obtained, spinning
is the first step in textile production. This is the process by
which natural or synthetic fibers are cleaned and twisted into yarn.
The raw materials first move through the blow
room where all impurities are removed, for natural fibers only and
the fibers are rolled into laps. The laps then go through a carding
machine, where they are cleaned further and formed into slivers,
thick and loosely spun yarn. In order to produce combed yarn, the
fibers need to undergo further processing in the comber machine
where the short strands are removed, and the remain processed into
sliver. The sliver is then fed to the draw frame, and speed/roving
frames where they are twisted to form what are called rovings. The
rovings are finally placed in spinning frames where further twisting
and drafting take place, and yarn is produced. The yarn is then
spun around a bobbin or cone, using autoconers or cone winding/reeling
machines, packed and marketed.
Fabric Forming, Weaving and Knitting
Next the yarn is made into grey, the early stage of fabric processed
using looms or knitting machines. The name indicates that the material
has no color at this point. These are fairly simple procedures and
can even be done by hand, as they were for many centuries in cottage
industries. Weaving produces cloth that has a rigid structure, such
as the material used for making trousers, shirts, bed sheets, etc.
Prior to weaving the yarn is wrapped around beams
and dipped in a size, an adhesive, which when dries gives the yarn
a rigid and uniform structure. This yarn is then fed into the looms
and called the warp. A thread of yarn, called the weft, passes between
alternating warp yarn with the aid of a shuttle, air jet, or rapiers.
Knitting, however, can also be used to make grey.
Instead of looms, circular knitting machines are used for knitting.
These machines use needles fed with yarn that move in an up and
down motion and knit interlocking arrangements of yarn. Knit fabric
is much softer and more flexible than that produced on looms, and
is commonly used for producing articles of casual wear such as tee
shirts, and under garments.
Dyeing,
Printing, Finishing
The grey then undergoes the three steps of dyeing,
printing, and finishing. I had the opportunity to learn about these
processes in great depth on my various visits to textile mills.
After the grey is inspected, it goes through a process called the
batch method when it undergoes scouring, bleaching, and dyeing.
Scouring is the treatment of grey in chemical solutions in order
to remove the size, natural fats, waxes, proteins, and other impurities,
and to make the fabric hydrophilic, which means it no longer repels
water.
The bleaching process is next. It is essential
in giving the cloth a clean white color. It is done using one of
two different methods: bleaching with dilute hypochloride solution
at room temperature, or by using hydrogen peroxide solution at elevated
temperatures, usually 80 to 90 degrees Celsius. The latter method
usually results in better and longer lasting whiteness, however
is the more expensive of the two methods.
The scoured cloth is then dyed, and then printed
on. Printing is done using perforated rollers that allows certain
chemicals and colors to diffuse through the holes. After the printing
has been completed, the fabric is washed, soaked in chemicals under
elevated temperatures for color fixation, and then washed again.
Knitted fabrics are loaded on to a jigger machine,
which performs the processes of scouring, bleaching, or dyeing.
The fabric then moves on to a machine called either de-watering
or de-twisting machine, which removes water from the fabric. The
fabric then goes through a shrinkage tensionless drier which is
designed for drying, shrinking, and relaxing the knitted fabrics.
The final process before the fabric is ready
for stitching is compacting. During this step the fabric is steamed
and ironed between a roller assembly. The fabric is then folded
and is ready for marketing.
Readymade
Garments Industry and its Growth
The RMG industry can then cut and stitch the finished
product into apparel, which is then marketed. In 1978 the RMG industry
was established in Bangladesh with nine enterprises and has grown
at a blistering pace since, as indicated in Chart 1. This phenomenal
growth is due largely to the simple level of technology required
in the industry. The machinery is relatively inexpensive and easily
available. In addition, garment producers can operate in smaller
premises than those required by most of the processes in the textile
industry. On top of this, Bangladesh has an abundant supply of cheap
labor consisting mostly of women for whom this is one of the most
suitable forms of employment.
These factors, as well as incentives such as liberal
trade policies, low tariffs on imported machinery, and bonded warehouse
facilities, which allow the importation of raw materials to be processed
for export have done much to facilitate the growth of the garment
industry. However, probably the most important factor in this growth
is the benefit of reserved markets that Bangladesh enjoys under
the Multi Fiber Arrangements, or MFA.
The Textile exporting nations in the world fall under the trading
conditions determined by the MFA, which is included in the General
Agreement for Tariff and Taxation, or GATT.
According to the MFA, developed nations are required
to guarantee the import of a certain amount of their textile needs
from developing nations. For example, the United States may have
assigned the production of a certain amount of textiles to Bangladesh.
This would mean that countries such as Bangladesh are assured a
market for a specified number of yards of textiles each year. This
agreement served to limit the dominance of the textile industries
in the more developed world by limiting their share of the global
market.
In addition, Bangladesh's garment exporters enjoy
the privilege of quota-free entry into the European Union, or EU,
whereas their major competitors, such as China, India, Indonesia,
Pakistan, Sri Lanka, and Thailand, are subjected to the restrictions
of an assigned quota. As a result Bangladesh is able to export everything
that it produces, while its more developed competitors are limited
to specific amounts assigned through quotas.
The
Current Position of the Textile Industry in Bangladesh
Today, the textile industry of Bangladesh can
be divided into the three main categories: the public sector, handloom
sector, and the organized private sector. Each of these sectors
has its advantages and disadvantages. Currently, the organized private
sector dominates, and is also expanding at the fastest rate.
Public Sector
The public sector is that portion of the industry
controlled by organizations that are part of the government. The
factories in the public sector enjoy certain privileges such as
government funding. However, in Bangladesh, factories in the public
sector are not well supervised. There are frequent changes in officers,
and many of these officials do not have a personal interest in the
factory for which they are responsible. In addition, the equipment
in this sector is not well maintained, as much of the money allocated
for this purpose is not spent as planned, but is wasted through
corruption and poor accounting.
Handloom
Sector
The rural group of textile producers includes
operators of handlooms and a number of organizations which employ
rural women, such as BRAC, or the Bangladesh Rural Advancement Committee.
The Handloom industry provides employment for a large segment of
the population of Bangladesh. The industry also supplies a large
portion of the fabric required by the local market. Factories in
this sector are usually well looked after by the owners and are
quite productive, considering the equipment available. However,
the inferiority of their machinery, mostly due to their narrow width,
means that the fabric production is slow, and usually falls short
of the quality needed for export.
Private Sector
The most productive of the three categories is
the private sector. This, as the term suggests, is made up of those
factories owned by companies or entrepreneurs. Since the owners
of such factories are directly affected by their performance, they
take an active part in planning, decision making, and management.
Most of these factories also have machinery that is superior to
those in the two other sectors because the owners are well aware
of the connection between their equipment and their profits.
Demand
Supply Gap
The phenomenal expansion of the RMG industry in
Bangladesh and the dramatic increase in the population in addition
to an increased standard of living in the country has led to a large
demand-supply gap as shown by the following table. Only 21% of the
total demand for yarn is met locally in Bangladesh. The figures
for grey are not much better as only 28% of the total demand is
met locally. The finishing sub-sector currently is able to process
all of the locally produced grey, but will need to expand at as
with the weaving and knitting sub-sectors.
All sectors of the textile industry face many
of the same challenges. These problems include lack of power, obsolete
technology, low capacity utilization, lack of machinery maintenance,
a workforce that is not adequately trained, problems with labor
unrest and militancy, political unrest causing disruption such as
hartals, and a lack of working capital.
The
Spinning Sub-Sector
Problems related to spinning have an extremely
negative impact on the textile industry. The production capacity
of the spinning sub-sector is estimated at approximately 183 million
kg per year. However, only 125.16 kg, or 67.3% was produced in 1997-98.
One of the main causes of this under production
in the spinning sub-sector is the fact that approximately 38% of
the spinning mills in the country are more than twenty-five years
old and therefore are not able to produce as much yarn as their
initial capacity. The principal reason behind the machinery being
so outdated and poorly maintained is the high import duty on textile
machinery and their spare parts. Many have not been maintained or
repaired as they should have been because in addition to the high
cost of the spare parts, there is a shortage of technicians in this
field, resulting in both very expensive and sub-standard repairs.
Other reasons for the low production figures include frequent power
failures, a shortage of raw materials, a high import duty on raw
materials used for local consumption, and a high percentage of wastage.
The labor productivity in the spinning sub-sector
is also lower than that in competing countries. The output of labor
in the industry is about 0.65 kg per man-hour. A recent World Bank
survey indicated that the number of spindles installed in Bangladeshi
spinning mills could produce twice as much yarn while using only
10% of the labor force. Obviously, obsolete machinery is having
an extremely negative impact on Bangladesh's textile industry.
The Weaving Sub-Sector
The shortage in supply from the spinning sub-sector
also has a negative impact on the amount of grey produced. The unmet
demand for yarn is filled by importing 3.15 billion meters of grey
annually. In order to import grey, the subsequent sectors have to
invest more in transportation, import taxes, etc., resulting in
a more expensive end product.
The weaving sub-sector is plagued by a lack of
organization and coordination. There are many small-scale manufacturers
dispersed all over the country, which results in replication and
a lack of specialization. Instead of working in organized groups,
many of the small producers try to do everything on their own, leading
to an end product of inferior quality.
The
Handloom Sub-Sector
The handloom industry, traditionally an important
part of the textile industry in Bangladesh, is still responsible
for a very high percentage of the nation's economy. It is the second
largest source of rural employment after agriculture. Even without
being dependent on electricity, there are numerous problems faced
by the handloom industry.
Many of the weavers cannot work steadily due to
the irregular supply of the yarn, dyes, and chemicals they require.
The primary reason for this is that many of these producers are
located in places with poor access to transportation. Most of these
weavers obtain their raw materials from brokers at their local levels.
These brokers gather money from many small scale manufacturers and
travel to the urban centers to purchase the required materials,
which they then take back to the weavers.
Unfortunately, not all of these brokers are very
experienced and some are dishonest. Those in the handloom industry
are very vulnerable; even a minor problem such as a heavy rainfall
might prevent them from obtaining their raw materials or selling
their finished product.
Most export oriented garment factories reject
a large quantity of the grey produced by the rural handlooms in
Bangladesh. When I examined fabrics of similar type and patterns,
one of which was produced using handlooms, and the other on powerlooms,
the superiority in uniformity and quality of the cloth produced
using the powerlooms was obvious. In addition, handlooms also have
a narrower width than powerlooms, and usually cannot produce fast
enough to meet the deadlines set by export oriented customers.
Knitting/Hosiery
The hosiery industry produces different types
of products such as undergarments, socks, stockings, and other soft
apparel. These factories were originally designed for the local
market, but recent improvements in quality have propelled them to
enter the export market and knitting has become another rapidly
growing textile sub-sector. The Knitting and Hosiery sub-sector
is faced with the lack of modern facilities needed for producing
quality fabric. There is also a shortage of raw materials in the
sub-sector. However, the factor that has the most negative impact
on the industry is the lack of working capital.
Even though the sub-sector has to overcome some
obstacles, it has been extremely successful recently. Currently
the demand for knit grey can be met locally. The quality of the
local knit grey is also competitive as most of the knitting units
have been installed recently and the machinery is not obsolete.
Dyeing,
Printing, and Finishing
Dyeing, printing, and finishing, the final steps
in the textile industry, are also the most complicated processes.
It is the quality of this work that determines the appearance of
the fabric and thus its marketability. In order to be competitive
in the future, this sub-sector of the textile industry will need
to expand at the same rate as the weaving sub-sector, in order to
make the country self-sufficient in grey production.
The dyeing, printing, and finishing sub-sector
has improved dramatically over the last five years. However, due
to a lack of modern equipment and facilities, the majority of dyeing,
printing, and finishing units are still unable to meet the standard
of quality demanded by the export-oriented RMG industries, or the
export market. Those that are producing fabric suitable for export
are heavily dependent on imported grey. As is the case with most
imported goods, they face a number of restrictions, such as import
taxes, transportation, and various others. However, the successful
expansion of the knitting sub-sector has made the country self-sufficient
in all knit grey.
The
Future of the Textile Industry in Bangladesh
The
textile industry in Bangladesh has grown in an unplanned manner
and a critical demand-supply gap has arisen for both yarn and fabric.
The crisis will naturally deepen unless appropriate backward linkages,
the incorporation of the fundamental steps in the textile industry
all through to the RMG industry, can be built to meet the rapidly
approaching challenges in the global textile market. As the population
is growing and the standard of living is increasing in Bangladesh,
the demand for textiles is increasing rapidly. This presents an
urgent need to dramatically increase capacities in spinning, weaving,
knitting, and dyeing, printing, and finishing sub-sectors. This
will require the adoption of the most modern and appropriate technology
to ensure quality products at competitive prices.
The
possibility of increased yarn production in Bangladesh is an issue
that has been looked into extensively by many researchers. These
investigations have revealed the country actually has a comparative
advantage over all competitors in terms of the expense of yarn production.
However, in regards to the total yarn cost, Bangladesh's advantage
over India and Pakistan disappears, even though it remains competitive
with other producers. This is essentially a result of the higher
cost of raw materials in Bangladesh, as most need to be imported.
Bangladesh
has a lower waste percentage than all its competitors. Power along
with Korea is the cheapest in Bangladesh amongst all the yarn producers.
The country also has a very low depreciation rate and a fairly low
interest rate as well, aided by a low conversion cost as well. However,
the price of auxiliary materials in Bangladesh is the highest among
all the yarn producers, as is the price of raw materials. Due to
these two factors Bangladesh loses its comparative advantage over
India and Pakistan.
Most
of the raw cotton imported by Bangladesh comes from overseas. The
country is not only handicapped by the import tariffs and shipping
expenses, but India and Pakistan subsidize the raw cotton, which
is sold locally, resulting in countries like Bangladesh paying more
for the same cotton.
The
outcome for the Bangladeshi spinning mills of such price differentials
is that they obtain raw cotton of the same quality at prices, which
are approximately 30% higher than the Indian mills, and Pakistani
mills. In addition, Bangladesh's spinning mills have to pay another
6 to 7% for handling, freight, and commission charges which put
them in a disadvantageous situation. The new infrastructure development
surcharge, or IDS, on all imports, which was stipulated in the 1997/98
fiscal year, added another 2.5% to the price of imported raw cotton.
The
weaving and knitting sub-sectors will also need to expand at a rapid
rate, as there is a large demand-supply gap in the country. With
increased investment in the sub-sectors and modernized machinery,
Bangladesh could profit greatly from larger and more competitive
weaving and knitting sectors.
As the
current dyeing facilities are mostly dependent on imported fabrics,
they are expanding at a rate which is not dependent on any of the
other sectors. However, as local grey becomes more competitive,
and its production is increased, the dyeing, printing, and finishing
sub-sector will also need to expand to accommodate for the increased
supply.
The
leakage from bonded warehouse facilities and smuggling of materials
across borders also need to be monitored closely in order to assure
the competitiveness of the local industry. The reduction of such
problems will automatically improve the market position resulting
in improved opportunities for the expansion of the Bangladeshi textile
industry.
Conclusions
The
importance of the textile industry in the economy of Bangladesh
is very high. Furthermore, the industry is expected to be the catalyst
in the industrialization of Bangladesh, and has been declared as
a thrust sector by the government. However, the largest sub-sector
of the industry, spinning, faces numerous problems, coupled with
faulty government policies and a lack of fairness in competition
from neighboring countries.
The
explosive growth of the RMG industry in the country, however, has
not been supported by the growth of backward linkage facilities.
Because of the inferior quality and supply of local fabrics, which
are also non-competitively priced, the RMG industry is almost completely
dependent on imported fabric. As a result, the foreign exchange
earning from the RMG industry is extremely low. This value addition
could obviously be boosted if appropriate backward linkages were
established in the textile industry.
Therefore,
it is extremely important that some remedial measures are taken
for the effective development of the industry and to achieve the
targets set by the government for 2005 to meet the post-MFA challenges.
Bangladesh's low labor cost, skill development potential, a presently
expanding market, and favorable conversion cost can be used to turn
the challenges of the quota-free market into a window of opportunity.
In addition, most developed countries are turning away from industries
like the textile industry and investing in other sectors, thus creating
a vacuum in the market.
If the
appropriate steps are taken to prepare the country for 2005, Bangladesh
will not only maintain the current market, but also expand her global
market share, increase the value added to its exports, and widen
the range of products it produces. The main steps that must be taken
to realize these goals are as follows:
1. To attain self-sufficiency in fabrics by ensuring that the RMG
industry's fabric needs can be met locally.
2. Ensure
that the sub-sectors of the industry are better articulated resulting
in a more synchronized development in the industry.
3. To
modify governmental policies to benefit the textile industry, for
example-to reduced the import duty on raw cotton and dyes and chemicals.
4. To
create better facilities for training the workforce in the industry.
In fact,
many of the problems faced by Bangladesh's textile industry would
be minimized if some of the government policies regarding textiles
were modified. The bank charges and interests interest rates for
loans are extremely high; as a result it is very difficult to gather
the capital to set up and maintain any type of factory especially
textile units which require much expensive equipment. A reduction
of the interest rate would not only encourage entrepreneurs to expand
their current facilities but should also attract new investors.
The handling charges for shipping are also extremely high, which
adds to the cost of the materials that are imported and exported.
There
is currently a serious lack of coordination among the various government
agencies that are connected in some way with the textile industry.
As a result of this lack of specialization, duplication of work,
and waste of time and resources, policies are often found to work
against each other. Industries, which require immediate attention,
are not given the necessary regard and fail to obtain speedy solutions
to their problems.
The
governmental institutions dealing with the textile industry is becoming
increasingly disorganized as the industry in expanding. It is therefore
necessary to enhance the institutional capabilities and the skills
of these officers through proper training and more permanent office
positions, as well as greater accountability.
The
Bangladesh Tariff Commission, or BTC should place greater emphasis
on textiles and should develop more of its policies around the industry.
In order to do so, the BTC would benefit by making the following
changes:
1. Hire more professionals to conduct extensive research on Bangladesh's
trade requirements
2. Impose
stricter controls on import incentives such as bonded warehouse
facilities to protect the market from leakage
3. Enhance
the government's representation with major trade organizations such
as the WTO
4. Formulate
policies and programs to enable local industries to become more
efficient and competitive in the international market
Another
area that needs to be examined is that of the government's incentives.
Currently, the numerous incentives provided by the government are
modified on a yearly basis. As a result, a number of industrialists
do not feel secure about them and at times are hesitant to expand
their businesses in fear of policy changes exposing them to greater
financial risks. Any required modifications should be made to these
incentives after a careful study then they should then be made permanent
or at least guaranteed for a longer and specified period. This would
provide investors with a sense of security and encourage expansion.
Bangladesh
could have a bright future in the textile industry. Backward linkage
is the key to remaining competitive in the post-MFA, WTO free market.
If appropriate measures are taken soon, what now appears to be a
great challenge for the industry may turn into the best thing that
has ever happened.
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Statistics of Bangladesh Textile Industry
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