Says Anuj Sethi, Senior Director, CRISIL Ratings, “Domestic demand, which accounts for three-fourths of the overall RMG demand, is expected to grow over 20% on recovering discretionary spends and improving realisations amidst the surge in raw material prices. Consequently, stronger operating profits and marginal improvement in working capital intensity will support the debt protection metrics in the current fiscal, lending stability to their credit profiles. Besides, the depreciation of the rupee 1 and continuation of export-linked incentive schemes will be added advantages for export players in the road ahead, shows an analysis of 140 RMG makers rated by CRISIL Ratings, with aggregate revenue of Rs ~20,000 crore. Profitability will be supported by partial pass-through of higher input prices and better operating leverage. Operating margin of RMG makers should improve by 75-100 basis points on-year to 7.5-8.0% this fiscal, though still lower than the pre-pandemic levels of 8-9%. That would follow a strong growth of around 18-20% in fiscal 2022, albeit on a low base of fiscal 2021, caused by the advent of Covid-19. The industry is also set to benefit from the ongoing shift in global sourcing patterns as more and more countries look to diversify their supply chains.Īs per Sri Lankan financial services firm CAL Bangladesh, Bangladesh’s apparel sector will see a short-term dip in 2023 but a strong rebound is expected in 2024 which will help the sector’s exports reach US $56 billion by 2026.Normalising discretionary spends, higher realisations, and sustained export demand, including due to higher opportunities following supply chain issues at Sri Lanka and China, will drive up the revenue of ready-made garment (RMG) makers by 16-18% this fiscal. DTG is the largest garment machinery, home textile and accessories expo in Bangladesh.īangladesh’s textile and garment industry is forecasted to continue growing, and it is expected to account for more than 10% of the global market by 2025, according to BGMEA.

BD garment manufacturers aim to hit $100 billion in export earnings by 2030 (BGMEA).Bangladesh’s garment exports to India surged 69.58% to $715.41 million in 2021-2022.

In 2021, Bangladesh’s textile and garment industry attracted $3.5 billion in foreign direct investment.

Bangladesh’s textile and garment industry employs around 4.4 million people, mostly women.

Bangladesh is the world’s fifth-largest exporter of home textiles crossing $1 billion in 2020-21.

Knitwear is the largest export contributor at 41.8% in Bangladesh’s national export earnings.

Bangladesh is the second-largest cotton yarn exporter worldwide.

RMG exports saw a 35.47% year-on-year growth in the fiscal year of 2021-22.

In 2021-2022, Bangladesh RMG exports reached $42.613 billion.

Here are 10 key statistics about Bangladesh’s garment industry: The European Union (namely Spain, Germany, Italy, France, Belgium and Netherlands) is the second-largest export destination for BD apparel, followed by UK and Canada. The United States is the largest export destination for Bangladeshi garments, accounting for around 21.50% of total exports. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that in the first eight months of 2022, BD ready-made garment (RMG) exports totaled $29.825 billion, up by 38.39% compared to the same period in the previous year. In addition, the garment industry is also a significant source of employment and income for Bangladesh, with more than 4 million people (about twice the population of New Mexico) working in the sector. In the fiscal year 2021-2022, Bangladesh exported garments worth US $42.613 billion, making it the second-largest apparel exporter in the world (Export Promotion Bureau data). Bangladesh’s textile and garment industry is a major contributor to the country’s economy, and it is a vital player in the global textile and apparel market.

Rmg export