Modernizing Bangladesh’s Industrial Sector

 

The Economist Intelligence Unit (EIU) has predicted success for Bangladesh. According to their predictions, Bangladesh's economy would rank in the top 20 in the world by 2040. Southeast Asian nation Indonesia will be included in this list together with Bangladesh. Bangladesh will thereafter become a desirable location for Chinese investment. Based on Bangladesh's market size and economic development, EIU has generated this projection. Consumer electronics, IT services, telecommunications, renewable energy, and vehicles are mentioned as prospective areas in the research.

For example, the second decade of China's much talked Belt and Road Initiative has begun. EIU created a rating of the countries that are most appealing to Chinese investors at that time. Twelve on the list of such nations is Bangladesh. When a comparable survey was conducted in 2013, ten years ago, Bangladesh was placed 52nd. In other words, during the last 10 years, Chinese investors' perceptions of Bangladesh have improved. The fact that it improved from 52nd to 12th in barely a decade is evidence of that.

In this list, Bangladesh comes in at number two as the most alluring location for market growth investments. The top of the ranking is occupied by Indonesia. The following countries include Vietnam, Malaysia, Pakistan, Cambodia, Egypt, India, and Tanzania. Between South and East Asia lies Bangladesh. Bangladesh's significance as a nation situated halfway between China and India, the two economies that are driving the global economy, is continually growing. India and Bangladesh are regarded as close allies. Bangladesh has established close commercial ties with China, maintaining this relationship. The "friendship with all" policy has motivated Bangladesh to go ahead.

The nation's economy has had exceptional prosperity since gaining independence. Bangladesh is ahead of the competition in terms of economic and social metrics. This achievement is the result of three factors. These include farming, clothing, and remittances. Clothes and remittances account for around 90% of all overseas profits. And the agricultural sector employs more than 40% of the entire work force.

It is impossible to dispute the economics of the nation's clothing industry. Particularly, the apparel industry accounts for 80% of all exports. Additionally, remittances provide a significant contribution to generating local demand and earning foreign currency. This industry has helped to reduce poverty, create jobs, and give local residents more authority.

According to a number of assessments from the World Bank, International Food Policy Research Institute (IFRI), and the Food and Agriculture Organization of the United Nations (FAO), agricultural output has been crucial in reducing severe poverty in Bangladesh. In South Asia, Bangladesh has a high score on the IFPR's global hunger index. In the production of rice, jute, jackfruit, mango, guava, potato, vegetables, and fish, Bangladesh has led the globe. Currently, Bangladesh is ranked #1 out of 11 nations that produce hilsa. In addition, Bangladesh is first in the world for jute export and is second for production. It also comes in second for jackfruit, third for rice, fish, and vegetables, fourth for goats, seventh for mango and potato, eighth for guava, and tenth for seasonal fruits. And the rising use of technology in agriculture is the main driver of this success. In the last 15 years, technology has transformed the husbandry of fish, cattle, and poultry.

In the 52 years after independence, the clothing sector has made significant contributions to the nation. This industry has a significant impact on employment and socioeconomic growth. To push this industry further, sustainable policies are required. Gas and power supplies must be uninterrupted, long-term taxation is necessary, and product diversity is crucial.

Additionally, expatriates are responsible for Bangladesh's current transformation. Bangladesh is now ranked as having one of the world's top 30 economies. We have escaped all of the world crises we have encountered thanks to remittances given by expatriates. Ten to twenty times more money is sent abroad each year by expatriates than is imported. Even 20 years ago, the budget of the government was dependent on foreign help. We are currently lending money to Sri Lanka. Unimaginably successful.

The industrial sector is the primary engine of the economy. The ready-made clothing business makes the most of this in this respect. Along with increasing the nation's foreign currency reserves, this industry has also made sure that many people are employed. The country's economy has seen outstanding success in the apparel sector.

The global economic crisis affected many different businesses, but the garment industry was the first to recover. 85 percent of the nation's exports come from the ready-to-wear industry. garments produced by industry celebrities in export. Our export markets are becoming more varied. The garment industry is expanding thanks to new items including high-value goods and synthetic fibers. For the sake of the nation's economy, this tendency must continue.

The value of industrial enterprises and industrial establishments to the national economy cannot be understated. And the clothing business is in front in this respect. Bangladesh has established quite a name for itself in the global apparel market. Another significant contributor to export commerce is the apparel sector. This sector is crucial to addressing the issues of unemployment, employment, economic growth, and particularly the employment of women. By means of this business, Bangladesh acquired a new reputation on the international market. This industry contributes significantly to GDP and foreign currency gains.

Bangladeshi authority is giving Bangladesh's ready-made clothing sector all the backing it needs to grow. For the purpose of improving capacity, employees in the ready-made clothing business get regular training. Modernization of product quality and design is occurring. In the Bangladeshi garment sector, there were some skilled foreign employees; now, solely our trained skilled people are employed. The construction of 100 Special Economic Zones in strategic locations around the nation is moving forward quickly under the direction of Prime Minister Sheikh Hasina for industrial growth. Now that they are nearing completion, several of the works.

Bangladesh is making rapid progress in the cutthroat global marketplace. Bangladesh can now produce contemporary, high-quality clothing at costs that are far cheaper than in the past. The Bangladeshi garment industry is a fresh potential addition to the country's industrialization. Currently, this industry generates the majority of Bangladesh's export revenue. Unquestionably, the clothing business has helped to address the issue of unemployment, particularly for the underserved semi-educated women in society and to help them become independent via work.

Bangladesh currently offers a substantial potential for the ready-to-wear sector of the textile industry. The removal of all barriers to the expansion of the apparel business in such a circumstance is one of the duties of all parties involved.


Anup Sinha is a freelancer
and a columnist.