Apparel sector to be the backbone of Bangladesh's export earnings

The apparel sector continues to be the backbone of Bangladesh's export earnings. In the first eight months of the 2022-23 fiscal year (July-Feb), the country's ready-made garment (RMG) exports increased by 14.06 per cent to $31.36 billion, compared to $27.50 billion in the same period of the previous fiscal year, according to recent data released by the country’s Export Promotion Bureau (EPB). These earnings make up 84.58 per cent of Bangladesh's total exports of $37.08 billion, with woven RMG exports growing at a faster pace than knitwear.

Percentage change in Bangladesh's textile exports (July-Feb 2022-23 vs July-Feb 2021-22)

Source: Export Promotion Bureau

Meanwhile, the jute and jute goods sector has seen a decline in earnings, dropping by 23.68 per cent to $610.08 million in the same eight-month period, contributing only 1.65 per cent to total export earnings. The jute industry has been negatively affected by the global economic slowdown, declining demand, rising domestic production costs, and anti-dumping duties imposed by India. As per Bangladesh Jute Goods Exporters Association, if the Bangladesh government manages to withdraw the anti-dumping duty imposed by India, the sector could earn an additional $300 million annually. Jute yarn exports have suffered due to a drop in demand among carpet manufacturers from Turkiye and China, the main users of the product.

The home textiles sector, an emerging industry in Bangladesh, has also seen a decline in export earnings. During the initial eight months of FY 2022-23, the exports of home textiles decreased by 22.53 per cent to $769.86 million compared to $993.76 million in the last fiscal. The downward trend can be attributed to the ongoing global economic crisis, which has led to a decrease in the number of export orders. Moreover, the countrywide gas and electricity crisis has compelled the industry to cut down on production by almost 40 per cent. This is largely due to the country's over-reliance on imported sources of energy such as oil, gas, and coal.