The textile industry encompasses the entire process of transforming raw materials like cotton and wool into fibers, yarns, and ultimately fabrics, which are then used to create clothing, home furnishings, and industrial products. It involves design, production, manufacturing, and distribution of these textiles and plays a significant global economic role, as seen in its major contribution to the economy of countries like Bangladesh.
1. Introduction
Bangladesh is the second-largest exporter of ready-made garments (RMG) in the world after China. The textile industry, as a core supplier and backbone of the RMG sector, plays a pivotal role in supporting this global position. The synergy between the textile and RMG industries ensures a robust value chain, from raw materials to finished clothing.
2. Structure of the Textile Industry
The textile industry in Bangladesh consists of several integrated sub-sectors, each playing a role in supporting the RMG sector:
a. Primary Textile Sector (PTS)
The Primary Textile Sector includes:
- Spinning mills: Convert raw cotton and synthetic fibers into yarn.
- Weaving and knitting mills: Convert yarn into fabric.
- Dyeing, printing, and finishing units: Add color and final touches to fabrics.
b. Backward Linkage Industry
- The PTS serves as a backward linkage for the RMG sector by supplying locally produced yarn and fabric.
- This reduces dependence on imports, lowers lead time, and improves competitiveness in the global market.
c. Composite Textile Mills
- These are vertically integrated units that perform spinning, weaving/knitting, dyeing, and finishing under one roof.
- They are crucial for meeting the demand for customized and high-quality fabric for export-oriented RMG.
3. Contribution to the RMG Sector
a. Raw Material Supply
- The textile sector supplies over 85% of the knitwear and about 40-45% of woven fabric demand of the RMG sector.
- This local sourcing helps RMG manufacturers meet tight lead times and international quality standards.
b. Cost Competitiveness
- Local textile production reduces costs associated with importing fabric and yarn.
- This makes Bangladesh’s RMG products more cost-competitive in international markets.
c. Shorter Lead Time
- Availability of raw materials within the country significantly reduces lead time, making Bangladesh an attractive sourcing destination for global buyers like H&M, Walmart, Zara, and Uniqlo.
d. Export Incentives and Value Addition
- The textile sector adds value to garments by offering specialized fabrics, prints, and finishes.
- Government policies support this with incentives for local sourcing and technological upgradation.
4. Employment and Economic Impact
- The textile and RMG sectors together employ over 4 million people, mostly women.
- The textile industry supports ancillary industries such as chemicals, packaging, and transportation.
- Contributes significantly to Bangladesh’s GDP (over 11%) and exports (around 84% of total export earnings).
5. Challenges in the Textile Industry
a. Energy Crisis
- Textile mills face frequent power outages and gas shortages, impacting production capacity and costs.
b. Environmental Concerns
- Textile processing (especially dyeing and finishing) contributes to water pollution and environmental degradation.
- Investment in eco-friendly technologies and compliance with international environmental standards is needed.
c. Technological Gaps
- Many mills still operate with outdated machinery, leading to lower productivity and inconsistent quality.
d. Dependency on Cotton Imports
- Bangladesh imports over 90% of its cotton, mainly from India, USA, and Africa, making it vulnerable to global price fluctuations.
6. Government Policies and Support
- The government supports the textile sector through:
- Cash incentives for using local yarn and fabric.
- Tax holidays and duty-free imports of capital machinery.
- Support for establishing textile engineering universities and training centers to improve human resources.
7. Future Prospects
a. Investment in Technology
- Automation, digital printing, and eco-friendly dyeing can improve efficiency and environmental compliance.
b. Vertical Integration
- More RMG manufacturers are investing in backward linkage textile mills to ensure consistent supply and quality.
c. Green Factories
- Bangladesh leads in LEED-certified green garment factories, and the textile sector is also shifting toward sustainability.
d. Diversification
- Investment is increasing in man-made fibers and high-end textiles to move beyond cotton and basic garments.
8. Conclusion
The textile industry is a strategic pillar of Bangladesh’s RMG sector. By providing essential raw materials, reducing lead time, ensuring quality control, and creating employment, it not only supports but drives the success of the country’s garment exports. However, for sustained growth and global competitiveness, the sector must overcome infrastructural and environmental challenges and embrace innovation and sustainability.