TERM PAPER ON

Course Title: Industrial Relations

Course Code: HRM 414
Section: 1

GARMENTS SECTOR OF
BANGLADESH PAST PRESENT AND
FUTURE
 At the beginning of the semester, we were assigned this
major report writing assignment. Our honorable faculty
provided us a guideline for preparing this report. We
followed this outline in a very strict manner. The introductory
part of the report includes origin of the report, objective, scope
of the report, methodology &limitations. Then we
proceeded on with the very primary concept of
insurance policy that means backgrounds & itwork with
people. The scenario of insurance policy in BD has
focused from different point of view. After a general
look, we concentrated on insurance life, its effects, its
personal selling, and their activities and related other
issues. The sequential rate pamphlet and its
information has highlighted accordingly. A list of
providing benefits has represented in the report.
Finally, we have analyzed the problems, suggestions
or strategies and recommendations & concluded the
report. There are number of limitations for which we
would not able to represent it as we have sketched to
do.

GARMENTS SECTOR OF BANGLADESH PAST PRESENT AND FUTURE

The garment industry plays a pioneer role in Bangladesh. It was established in 1976 and its soon
established a world market within a short period of time. Now a days garments it is the main
export items of the country, besides its enriching the countrys overall economy. Its enriching
the countrys economy it has played a very important role in alleviating the employment. There
are more than 2,100 garment factories working more than 13 lacslabor. And the fact is 85 percent
of them are women.

In among this more than 5000 factories 3.6 million workers are employing. So we can say that in
this South Asian suppliers in there are more ahead to satisfactory level of quality, especially in
value and entry value of products.

History of RMG:

Bangladeshi garments industry is the largest industrial sector of the country. Though the history
of Readymade Garment Industry is not older one but Bangladeshi clothing business has a golden
history. Probably it started from the Mughal age (16th to the 19th century) in the Indian
subcontinent through Dhakai Musline. It had global reputation as well as demandable market
around the globe especially in the European market.After industrial revolution in the west they
were busy with technological advancement & started outsourcing of ready-made garments to
meet up their daily demands. Many LDC's took that chance & started ready-made garments
export at that markets. Bangladesh took this chance enjoyed quota & other facilities of them.
Thus readymade garments industry started to contribute in our economy from late eighties
(1977). The history of the garments industry dates back to 1977 when the first consignment was
exported to then West Germany by Jewel garments. The number of units, however, remained a
meager 46 until the end of 1983. From a humble beginning the sector has thus made phenomenal
growth over the last two decades, the number of units growing to around 4500 (BGMEA,
2013).Bangladesh, the southern Asian country has a population of approximately 164 million
people. The economy of Bangladesh is significantly dependent on agriculture. But its a great
news for the country that, readymade garments (RMG) sector of Bangladesh has raised as the
biggest earner of foreign currency. This sector creates about 4.2 million employment
opportunities and contributes significantly to the GDP. Readymade garments (RMG) of
Bangladesh is powered by young, urbanizing, workers, where most of them are women.

Contribution to Economoy:

The RMG industry contributes to the Bangladesh economy in a distinctive manner. The last 20
years witnessed unparalleled growth in this sector, which is also the largest exporting industry in
Bangladesh. It has attained a high profile in terms of foreign exchange
earnings,exports,industrialization and contribution to GDP within a short span of time. The
industry plays a significant role in terms of employment generation.Nearly two million workers
are directly and more than ten million inhabitants are indirectly associated with the industry. In
addition to its economic contribution, the expansion of RMG industry has caused noticeable
changes by bringing more than 1.12 million women into the workforce. Hence it is quite
apparent that this sector has played a massive role in the economic development of the country.
RMGs contribution in terms of GDP is highly remarkable; it has reached 13 percent of GDP
which was only about 3 percent in 1991. It also plays a pivotal role to promote the development
of other key sectors of the economy like banking, insurance, shipping, hotel, tourism, road
transportation, railway container services, etc. One of the key advantages of the RMG industry is
its cheap labor force, which provides a competitive edge over its competitors. The sector has
created employment opportunities for about two million people of which 70 percent are women
who mostly come from rural areas. Thus the industry helps in the countrys social development,
women empowerment and poverty alleviation. Currently RMG earns the lions share of foreign
exchange earnings.

Stock ready garments:

It is manufactured divided into two broad categories woven and knit products/, basically in this
way Shirts and t shirt and trousers are the main woven products in several garments, socks,
stockings and sweaters other soft garments products are called as knit products.Woven garment
products still dominate the garment export earnings of the country. The share of knit garment
products has been increasing since the early 1990s; such products currently account for more
than 40 per cent of the countrys total RMG export earnings (BGMEA website). Although this
graments are manufactured in the country account more than 40 percent of countrys earning
.This few categories like T shirt trousers jacket and sweaters .

With about $15 billion in exports in 2010, ready-made garments are the country's most important
industrial sector; they represent 13% of GDP and more than 75% of total exports. That survey
come from recent updates which is identified attractive prices as the most important reason for
purchasing in Bangladesh. Price levels Comparatively High in the future, since significant
efficiency increases will rising cost.
.

Labour cost and duty advantage, raw materials and real estate costs are also cheaper in
Bangladesh. Bangladesh is benefitting from various preferential trade agreements providing tax
free entry into several countries.

But Bangladesh has its own challenges to overcome. Impediments to investment include
unreliable power supply, high real interest rates, corruption, and weaknesses in law and order. So
what can Bangladesh do to overcome these challenges and utilise its huge potential?

First, inefficient infrastructure, including transportation and energy supply, in this sectors buyer
are trying to get a good output and this issue will become even more important, they want to get
more fashionable product.

Second, although labour and social-compliance standards have improved over the past few years,
Suppliers creates a lot of compliance against them. Environmental compliance is just beginning
to get attention.

Third, the suppliers productivity must improve not only to reduce but also a environmental
beginning for sourcing countries. As like if there were india or combodia customer needs for
sophisticated products.

Fourth, access to raw material is crucial for clothing exporters. Lack of backward linkages and
Bangladesh's dependence on imports create sourcing risks and lengthen lead times.
Compounding the problem is the volatility of raw-material prices in recent years. The
development of a local sector could improve lead times.

Fifth, political stability is a prerequisite for attracting foreign investors. Political unrest, strikes,
and the absence of ease of doing business are major concerns of foreign investors.

The three main stakeholders the gvernment, suppliers and obuyers must work together to realise
the potential of Bangladesh's ready-made-garment market. For any government there first target
to achieve which challenges remain If this problem should be done than it should easy to
prosper.

What is the remedy for this :

What has emerged quite emphatically is that for the Bangladesh industry to survive it has to take
on board the issue of compliance with internationally recognised social, labour and
environmental standards. There are many initiatives underway buyers have their corporate
social responsibility initiatives, the government has set up task forces and fora, there are the
Memoranda of Understanding with the trade unions and the manufacturers and exporters
associations. There are many stakeholders, and dialogue is imperative and all important. There
needs to be the capacity and will amongst all the stakeholders, and particularly the government,
to take forward and develop compliance and create an industry with an enhanced global image
and global recognition of performance.

It is One of the Largest Sector In Bangladesh:

Garments industry of Bangladesh has a great opportunity to become a major sector of the
national economy. As we know that availability of a lower labor cost in Bangladesh to helps the
garment industry to secure a very strong position in the world. As a Least Development Country
(LDC) Bangladesh has duty free access to global market for garment products. This advantage
may accelerate expansion and growth of Bangladeshi garments industry. Bangladeshi garment
products are being exported different countries. Its export is increasing worldwide
graduallyBangladeshi garment industry is very much capable to ensure proper quality of the
product as per requirement of the global buyers of the international garment market.Increasing
labor cost all over the world. However, Bangladeshi garment sector labor cost is comparatively
cheap; as a result Bangladeshi garments products may be fulfilled global demand.
Market Structure of Garments Sector in Bangladesh

Apparel is the high growth sector of garment sector. Bangladesh is active to achieve a
phenomenal growth in export of the RMG. The export of RMG from Bangladesh has increased
from a meager USD 7 million during 1981-82 to about USD 1.95 billion during 1995-96. The
RMG sector has achieved a growth of 20% per annum over the past 10 years. Such high growth
was catalyzed by the low wage along with Multi-fiber Agreement (MFA) on textile quotas
principally with USA, Canada and European countries. The Generalized System of Preferences
(GSP) provided import tax breaks worth about 15% of the import valuation, giving Bangladesh`s
RMG export a considerable advantage in these markets. In addition to the above, the financing
agreements created through a system of back to back Letters of Credit (LOC) covering imported
inputs and finished exports, greatly contributed to the accelerated growth of RMG sector. The
above factors enabled Bangladesh to become the fifth largest exporter of RMG to the European
Union and sixth largest to the USA. The RMG industry is the multi-billion-dollar manufacturing
and export industry in Bangladesh. Whereas the industry contributed only 0.001 per cent to the
countrys total export earnings in 1976, its share increased to about 75 per cent of those earnings
in 2005. Bangladesh exported garments worth the equivalent of $6.9 billion in 2005, which was
about 2.5 per cent of the global total value ($276 billion) of garment exports. The countrys
RMG industry grew by more than 15 per cent per annum on average during the last 15 years
(World Bank, 2005). The foreign exchange earnings and employment generation of the RMG
sector is increasing from year to year.

Challenges of Garments Sector of Bangladesh

Though RMG sector of Bangladesh has achieved the second spot for the highest number of
garments exporter, but it has a lot of problems. The major problems faced by RMG sector
currently is the lack of safety in working place and working conditions for the millions of
garments workers. Its become a great challenge for the upcoming financial year of Bangladesh.
Another important one is political stability. Two major incidents in RMG sector of Bangladesh
are the Tazreen fire and the Rana Plaza collapse, which have brought the issue of workplace
safety to the fore and led all stakeholders to act accordingly. But its good news for RMG sector
that, following the unfortunate incidents, various platforms such as the Bangladesh Accord on
Fire and Building Safety, the Alliance for Bangladesh Worker Safety and National Plan of Action
have been formed to improve building and fire safety of Bangladeshs garment industry. Also
BGMEA and BKMEA are working together here to solve such kinds of problems. They have
also taken necessary actions and invested huge amount of money. Its a huge responsibility for
the government of Bangladesh to ensure working place safety in all the garments manufacturing
factories. If we cant do it, foreign buyers will refuse to place order here, which will be a massive
blow for RMG sector of Bangladesh. We hope, the government of Bangladesh, BGMEA and
BKMEA, with the support of global brands and international development partners, will be able
to ensure the safety of the RMG industry and maintain the momentum of socio-economic
development in the country. Political stability creates a negative impact on RMG sector of
Bangladesh. If it continues, it will be a massive blow to destroy our most valuable sector. So,
political leaders should come out immediately to solve such kinds of problems

Present Sitution Of Garments Sector

Quota system was a great blessing for establishing our garments industry. We were strongly
benefited by using that. As a result we can see a matured garments industry today. But while
quota system was approaching to an end in 2004, theres so many got upset about the RMG
sector of Bangladesh. Though in the latter it cant be affected here as the experts were seemed.
We conquered the post quota challenges and made that a successful story. In RMG sector of
Bangladesh, there are more than 5000 garment factories (private statistics) at the current time,
employing more than 12 lack labours, where 85% of the labour force is women. But, according
to BGMEA the number of garment factories in Bangladesh around 4000. Now, RMG industry is
the countries largest export earner with the value of over $24.49bn of exports in the last financial
year. Its a great news for us that, Bangladesh is clearly ahead from other South Asian suppliers in
terms of capacity of the ready made garments industry. Though, there are various types of
garments are manufactured in Bangladesh, but all the ready made garments are classified into
two broad categories, where one is woven products and another one is knitted products. Woven
products includes Shirts, Pants and Trousers. On the other hand, knitted product includes T-
Shirts, Polo Shirts, Undergarments, Socks, Stockings and Sweaters. Woven garments still
dominates the export earnings of the country.From BGMEA website its seen that, Day by day
knitted items production is increasing in considerable rate and now about 40% export earnings
has achieved from knitted products.

Problems surrounding readymade garments sector:

The garment industry of Bangladesh has been the key export division and a main source of
foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving
BEPZA in full control over work conditions, wages and benefits. Garment factories in
Bangladesh provide employment to 40 percent of industrial workers. But without the proper laws
the worker are demanding their various wants and as a result conflict is began with the industry
1. Raw materials:
Bangladesh imports raw materials for garments like cotton, thread color etc. This dependence on
raw materials hampers the development of garments industry. Moreover, foreign suppliers often
supply low quality materials, which result in low quality products
2. Unskilled workers:
Most of the illiterate women workers employed in garments are unskilled and so their products
often become lower in quality.

3. Improper working environment:

Taking the advantages of workers' poverty and ignorance the owners forced them to work
in unsafe and unhealthy work place overcrowded with workers beyond capacity of the factory
floor and improper ventilation. Most of the garment factories in our country lack the basic
amenities where our garment workers sweat their brows from morning to evening to earn our
countries the major portion of our foreign exchange. Anybody visiting the factory the first
impression he or she will have that these workers are in a roost. Improper ventilation, stuffy
situation, filthy rooms are the characteristics of the majority of our factories. The owners profit
are the first priority and this attitude has gone to such an extent that they do not care about their
lives.
3. Lack of managerial knowledge:
There are some other problems which are associated with this sector. Those are- lack of
marketing tactics, absence of easily on-hand middle management, a small number of
manufacturing methods, lack of training organizations for industrial workers, supervisors and
managers, autocratic approach of nearly all the investors, fewer process units for textiles and
garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit
complicated and loading/unloading takes much time, time-consuming custom clearance etc.
4. Gendered division of labor:
In the garment industry in Bangladesh, tasks are allocated largely on the basis of gender. This
determines many of the working conditions of women workers. All the workers in the sewing
section are women, while almost all those in the cutting, ironing and finishing sections are men.
Women workers are absorbed in a variety of occupations from cutting, sewing, inserting buttons,
making button holes, checking, cleaning the threads, ironing, folding, packing and training to
supervising. Women work mainly as helpers, machinists and less frequently, as line supervisors
and quality controllers. There are no female cutting masters. Men dominate the administrative
and management level jobs. Women are discriminated against in terms of access to higher-paid
white collar and management positions. When asked why they prefer to amply women foe
sewing, the owner and managers gave several reasons. Most felt that sewing is traditionally done
by women and that women are more patient and more controllable than men.

5. Wages:
The government of Bangladesh sets minimum wages for various categories of workers.
According of Minimum Wage Ordinance 1994, apprentices helpers are to receive Tk500 and
Tk930 per month respectively. Apprentices are helpers who have been working in the garment
industry for less than three months. After three months, Apprentices are appointed as helpers.
Often female helpers are discriminated against in terms of wages levels, and these wages are also
often fixed far below the minimum wage rate. A survey conducted in 1998 showed that 73% of
female helpers, as opposed to 15% of their male counterparts, did not receive even the minimum
wage.
6. Insufficient of loan:
Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, lack of
communication, problem in taxes etc. Often obstruct the industry. In the world market 115 to 120
items of dress are in demand whereas Bangladesh supplies only ten to twelve items of garments.
India, south Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable
progress in garments industries. Bangladesh is going to challenge the garments of those countries
in the world market.
7. Unit labor cost:
Bangladesh has the cheapest unit labor cost in South Asia. It costs only 11 cents to produce a
shirt in Bangladesh, whereas it costs 79 cents in Sri Lanka and 26 cents in India. Clearly,
Bangladeshs comparative advantage lies in having the cheapest unit labor cost.
8. Working hours:
Though the wages are low, the working hours are very long. The RMG factories claim to operate
one eight-hour shift six days a week. The 1965 factory Act allows women to work delivery
deadlines; however, women are virtually compelled to work after 8 oclock. Sometimes
theywork until 3 oclock in the morning and report back to start work again five hours later ar
8oclock. They are asked to work whole months at a time the Factory Act, which stipulates that
no employee should work more than ten days consecutively without a break.
9. Poor accommodation facilities:
As most of the garment workers come from the poor family and comes from the remote areas
and they have to attend to the duties on time, these workers have to hire a room near the factory
where four to five huddle in a room and spend life in sub human condition. For four to five
workers there is one common latrine and a kitchen for which they have to pay from Tk=2000 to
Tk=2500/-.They share this amount among themselves to minimize the accommodation
expense. One cannot believe their eyes in what horrible condition they have to pass out their time
after almost whole day of hard work in the factory. After laborious job they come into their roost,
cook their food andhave their dinner or lunch in unhygienic floor or bed and sleep where
theytake their food. They share the single bed or sleep on the floor. The owners of these factories
must not treat the workers as animals. The owners of thesefactories who drive the most luxurious
car and live in most luxurious house do ever think thatthese are the workers who have made their
living so juicy. Will these selfish owners ever think ofthese workers of their better living for the
sake of humanity by providing better accommodationfor these workers in addition to providing
with the job.Because of the carelessness of the factory management and for their arrogance
factory doorsused to be kept locked for security reason defying actSafety need for the worker is
mandatory to maintain in all the organization. But without thefacility of this necessary product a
lot of accident is occur incurred every year in most of thecompany. Some important cause of the
accident are given below-
Routes are blocked by storage materials

Machine layout is often staggered

Lack of signage for escape route

No provision for emergency lighting

Doors, opening along escape routes, are not fire resistant

Doors are not self-closing and often do not open along the direction of escape

Adequate doors as well as adequate staircases are not provided to aid quick exit

Fire exit or emergency staircase lacks proper maintenance

Lack of proper exit route to reach the place of safety

Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air

Fire in a Bangladesh factory is likely to spread quickly because the principle of

sCompartmentalization is practiced

Garments industries often pay dearly for political unrest, hartal and terrorism etc. The
international market has withdrawn quota advantage over garments export form Bangladeshsince
December 2005.Bangladesh has to advance cautiously for getting better position of her garments
in the worldmarket. Finally destruction of twin tower in 11 September 2001. Invasion of
Afghanistan and Iraq and depression in world Economy have seriously affected the export trade
of Bangladesh.

11. Price competitiveness:

China and some other competitors of Bangladesh have implemented sharp price-cutting
policiesin exporting garment products over the last few years, but Bangladesh has failed to
respondeffectively to such policies. China was able to drop the export price of 29 garment
categories by46 per cent on average in the United States within a year, from $6.23 per sqmetre in
December2001 to $3.37 per sqmetre in December 2002. Bangladesh needs to respond to such
price-cuttingpolicies of its rivals in order to remain competitive in the quota-free global
market.Lead time refers to the time required for supplying the ordered garment products after the
export order has been received. In the 1980s, the usual lead time in the garment industry was
120-150 days for the main garmentsupplier countries of the world; it has been reduced to 30-40
days in the current decade. However, in this regard the Bangladesh RMG industry has improved
little; for example, theaverage lead time is 90-120 days for woven garment firms and 60-80 days
for knit garmentfirms. In China, the average lead time is 40-60 days and 50-60 days for woven
and knit products respectively; in India, it is 50-70 days and 60-70 days for the same products
respectively. Bangladesh should improve its average lead time to compete in the international
market. The Ready-Made Garments (RMG) industry occupies a unique position in the
Bangladesh economy. It is the largest exporting industry in Bangladesh, which experienced
phenomenal growth during the last 25 years.

Some Incident Of Garments Sector

A tragedy of Rana Plaza:

The collapse of the Rana Plaza building is, to date, the deadliest disaster in the history of the
garment industry worldwide.

Some 3,639 workers toiled in five factories housed in the Rana Plaza building producing
clothing for some U.S., Canadian and European clothing labels and retailers. Eighty percent of
the workers were young women, 18, 19, 20 years of age. Their standard shift was 13 to 14
hours, from 8:00 a.m. to 9:00 or 10:30 p.m., toiling 90 to 100 hours a week with just two days off
a month. Young helpers earned 12 cents an hour, while junior operators took home 22 cents
an hour, $10.56 a week, and senior sewers received 24 cents an hour and $12.48 a week.

On Wednesday morning, April 24, 2013 at 8:00 a.m., 3,639 workers refused to enter the eight-
story Rana Plaza factory building because there were large and dangerous cracks in the factory
walls. The owner, SohelRana, brought paid gang members to beat the women and men workers,
hitting them with sticks to force them to go into the factory. Managers of the five factories
housed in Rana Plaza also told the frightened workers, telling them that if they did not return to
work, there would be no money to pay them for the month of April, which meant that there
would be no food for them and their children. They were forced to go in to work at 8:00 a.m.

At 8:45 a.m. the electricity went out and the factories five generators kicked on. Almost
immediately the workers felt the eight-story building begin to move, and heard a loud explosion
as the building collapsed, pancaking downward. 1,137 confirmed dead at Rana Plaza. A year
later, over 200 remain missing.

A tragedy of Tazreen Fire Accident

A fire broke out at Tazreen fashions, Nischintapur, Ashulia, Dhaka, Bangladesh on the night of
November 24, 2012. Thefactory employed more than 1200 workers almost 95% of whom were
females. Theannual turnover of the factory was over USD 36 million. Themajor buyers include
Wal-Mart, KIK GMBH, Teddy Smith Ace, C&A, Li & Fung,

The 2012 Dhaka fire broke out on 24 November 2012, in the Tazreen Fashion factory in
the Ashulia district on the outskirts of Dhaka, Bangladesh. Most of them people were dead fire
in the nation's history. The fire was initially presumed to be caused by an electrical short circuit,
but Prime Minister Sheikh Hasina has since suspected that the fire had been arson and an act of
"sabotage" due to the occurrence of previous comparable events. This event and others similar to
it have led to numerous reforms in workers' rights and safety laws in Bangladesh.

How to Develop The Productivity Of RMG:

The interviewees are really big firms and their success rate is very high compared to average
industry. However, their way of success could be an example for the other firms, which possibly
fear losing their stake. The following are some guidelines from this research:

Industrial Upgrading:

Industrial upgrading is the most important part for any firm along the commodity chain, which
help the firm to establish more networks and increases sourcing capability. It also helps for
negotiating with buyers and retains more profit margins, thus making the firms viable for more
investment. Thus the industrial upgrading that is found with the firms those interviewed could be
ideal for the average firms.

Product Diversification:
Product diversification is must for firms but before that the firm have to focus to be number one
exporter of their products, which they are skilled at. It is better to be specific in particular
products than be average in many. This motto could be applied for the whole garment industry as
there are five items as described in section 2.2.3 that consisted over 80 percent of the export
basket. Once it is accomplished then firms can move into other products using the same skills,
which will help to gain new skill.

Compliance

Compliance is essential in today's garment industry as buyers and consumers are more and more
aware of origin of products and their making in a healthy environment of workers. Firms should
try to label them SA 8000 for social standard, ISO 9000 for quality standard and ISO 14000 for
environmental standard, which will give the firms an edge over others. This could be hard for
some firms, at lest in the initial stage, but it has to be taken as an investment for a brighter future.

Skill Development

Skill development should be given priority through training and if possible to send employees
overseas to gain experience. Training for the production employee about line lay out and time
and motion study will improve productivity and reduce wastage. This will also decrease the
number of garments. Training to the workers about new machines, and new processes will
increase the productivity and their competitiveness. Rewarding workers for safe, clean and
higher productivity will motivate workers. Firm also can hire people from production
engineering who will assess the production floor in favor of overall productivity and safety.

Software Implementation

Firms have to implement software depending on their requirement. This will strengthen their
competitiveness. Creative Learning Environment A creative environment of learning for the
employees would make the firm ideal for the employees to implement their idea in critical
situations. This will also boost employee's motivation to stay longer in the firm.

Training Institutes

Training institutes should be established immediately according to the requirement of the

industry. The training program should be regular and should encourage firms to join. BGMEA
can invite experts on any particular subject. The training program should be vast and detailed and
holds at least concentrate on price negotiations, effective communication and dealing with buyer
and global suppliers, merchandising, commercial (export-import) and banking, among with
others.
 Presentation of the industry

Presentation of the industry will create a positive impact on the current and prospective buyers.
The description should include the importance of the garment industry for Bangladesh, the
achievement of the industry for society particularly for young women. Brochures, catalogs and
more user-friendly modem websites have to be part of the presentations.

Promotion of traditional clothing

Promotion of traditional clothing as a process of creation niche market will help Bangladesh to
make their own label internationally. India is currently famous for craft design; in mass
production, which is also done in Bangladesh but in a disorganized way. Organization of these
craftsman and promotion of their work could help to make the label for Bangladeshi product in
the international market. Handmade clothing, zamdani, silk, which is a famous fabric and
clothing along with kantha stitches which can easily promoted to the western market

Recommendations:

1.Reduce maximum tariff to 15 percent or lower over the next 5 years or so.

2. Replace all trade-related QRs with appropriate tariffs.

3.Strengthen commercial sections of Embassies, with performance-based appointment and

promotion of commercial counselors

4. Phase out export subsidy, including some new ones added in the past 2-3 years.

5. Simplify procedures for registration of firms, issuance of licenses, and abolish unnecessary
licenses. Streamline inspection regime.

6. Streamline import-export regime for other exports; Improve customs administration.

7. Modify labor policy to allow night shift work for women.

8. Provide adequate dormitory facilities for workers.

9.Strengthen financial sector reforms to bring about lower interest rates.

10. Introduce metered gas with necessary investment in gas pipelines and infrastructure

11. Establish good quality testing laboratories and increase existing laboratory capabilities

12. Improve Govt. and industry capabilities in hygiene and other food safety controls

Conclusion
 Bangladesh is the best placed for textile & garments industry due to cheap labor & favorable
trade status. Bangladesh has earned nearly $8 billion by exporting garment products, mainly to
Europe and the United States. This is about 75 percent of total export earnings of the country.
The RMG industry has around 4,250 units across the country. It employs more than 2 million
workers, most of whom are poor women. Whenever the country is criticized for its high level of
corruption and confrontational politics, its garment industry is held up as a success story. After
the end of the Multi-Fiber Agreement at the beginning of 2005 and the changeover to the new
World Trade Organization regime, it was feared that the Bangladeshs booming textile industry
would suffer as it would lose business to countries like China and India. But fortunately for
Bangladesh, so far this prediction has been proved wrong. In fact, the industry has continued to
grow at a healthy rate of 20 percent. However, this does not indicate that the Bangladesh garment
industry has become more competitive.Its a prime duty for us to provide a perfect working place
for the readymade garments sector of Bangladesh which has given our economy a strong footing,
created jobs for millions of people, especially for women, lifted them from the abyss of chronic
poverty and given them a magnificent life. Now what we have needed to do is dealing with all
the challenges facing our readymade garments industry, paving the way for its further
development.

References;

1. http://textilelearner.blogspot.com/
2. https://en.wikipedia.org/wiki/Bangladesh_textile_industry
3. http://www.dhakatribune.com/
4. http://www.mckinsey.com/
5. http://www.bgmea.com.bd/