The garment industry in Bangladesh has emerged as a cornerstone of the nation’s economy and a key player in the global textile market. From humble beginnings to becoming the world’s second-largest apparel exporter after China, Bangladesh’s ready-made garment (RMG) sector is a story of resilience, growth, and transformation. As of 2025, this industry continues to shape the country’s identity while facing both opportunities and challenges.

A Brief History

Bangladesh’s garment industry took off in the late 1970s and early 1980s, fueled by low labor costs, a growing workforce, and favorable trade agreements like the Multi-Fibre Arrangement (MFA). Initially, the country relied on basic manufacturing for international brands, but over the decades, it has evolved into a hub for affordable, high-volume clothing production. Today, garments account for over 80% of Bangladesh’s total export earnings, with the industry employing millions of workers, many of whom are women.

Why Bangladesh Dominates

Several factors contribute to Bangladesh’s dominance in the garment sector:

1. Cost-Competitive Labor: With one of the lowest wage rates in the world, Bangladesh offers a cost advantage that appeals to global retailers like H&M, Zara, and Walmart.
2. Scale and Capacity: The country boasts thousands of factories, ranging from small workshops to massive industrial complexes, capable of producing everything from basic t-shirts to intricate fashion pieces.
3. Trade Benefits: Duty-free access to markets like the European Union under the Generalized System of Preferences (GSP) has bolstered its competitiveness.
4. Workforce: A young, adaptable labor force—estimated at over 4 million workers—drives production, with women making up a significant portion, empowering them economically.

The Global Impact

Bangladesh’s garment exports reached approximately $45 billion in recent years, reflecting its critical role in supplying affordable clothing worldwide. Major brands rely on Bangladeshi factories to meet consumer demand for fast fashion, making the nation an indispensable part of the global supply chain. From denim jeans to knitwear, the “Made in Bangladesh” label is a familiar sight in stores across North America, Europe, and beyond.

Challenges on the Horizon

Despite its success, the industry faces significant hurdles:

• Working Conditions: The 2013 Rana Plaza collapse, which killed over 1,100 workers, spotlighted unsafe factory conditions. While reforms have followed, including stricter building codes and international accords like the Transition Accord, concerns about worker safety persist.
• Wages: Garment workers earn some of the lowest wages globally, often less than $100 a month. Calls for a living wage continue to grow amid rising inflation and living costs.
• Sustainability: Fast fashion’s environmental toll—water pollution, textile waste, and carbon emissions—puts pressure on Bangladesh to adopt greener practices, a challenge for an industry built on low-cost production.
• Automation: As technology advances, automation threatens jobs in a sector reliant on manual labor.

The Road Ahead

The future of Bangladesh’s garment industry lies in balancing growth with responsibility. Investments in sustainable manufacturing, such as eco-friendly dyes and energy-efficient factories, are gaining traction. At the same time, upskilling workers and diversifying into higher-value products—like technical textiles or luxury apparel—could reduce dependence on low-cost basics. The government and industry leaders are also pushing for better infrastructure, like the Dhaka-Chittagong trade corridor, to streamline exports.

A Symbol of Resilience

Bangladesh’s garment sector is more than an economic engine; it’s a testament to the country’s ability to rise from adversity. From its struggles with poverty and natural disasters to its status as a global textile titan, the industry reflects the grit and determination of its people. As consumers, we wear the fruits of their labor—often without realizing the complex story stitched into every seam.

What’s next for Bangladesh garments? Only time will tell, but one thing is clear: this industry will remain a vital thread in the fabric of the nation’s future.