MIC status may not augur well for BD RMG industry, report

by Apparel Resources News-Desk

12-July-2019  |  2 mins read

Bangladesh Garment Industry
Image Courtesy: thepages.com.bd

Growth and economic development is a matter of pride for any nation. But for countries like Bangladesh it comes with certain implication, it seems!

As per the latest report titled Prospects for the Textile and Clothing Industry in Bangladesh, 2019, unveiled by Textiles Intelligence Limited or TIL (a global monitor on textiles production and exports), Bangladesh’s expected graduation to a middle income country (MIC) by 2021, may not augur well for the country’s flourishing garment manufacturing industry.

If this were to occur, imports from Bangladesh into a number of major markets could be subject to additional tariffs and this could result in a loss in export earnings.

Once an MIC, Bangladesh could lose its tariff-free access to European, Canadian and Australian markets.

Further, the report maintains that when the industry has set an ambitious apparel export target of US $ 50 billion by financial year 2020/21, to achieve the target, it will have to continue to tackle issues of occupational safety, regulatory compliance and labour rights.

The TIL report examines the development of the textile and clothing industry in Bangladesh, its size and structure, and production and consumption.

Also, the report features: a geographical, political and economic profile; a detailed analysis of the country’s imports and exports; a thorough review of Government policies, investment incentives and foreign investments; a comprehensive study of Bangladesh’s infrastructure and human resources and how these affect the textile and clothing industry; and a detailed analysis of its strengths, weaknesses, opportunities and threats (SWOT).

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