Bangladesh’s textile and apparel industry stands as the backbone of its economy, contributing over 80% of the nation’s export earnings and employing approximately 4.5 million people, most of whom are women. From humble beginnings in the 1980s, the sector has catapulted the country into the global spotlight, making it the world’s second-largest exporter of ready-made garments (RMG) after China. As of 2025, the industry’s annual export value exceeds $55 billion, a testament to its resilience, innovation, and strategic importance.
Historical Growth and Global Reach
Following Bangladesh’s independence in 1971, the textile industry emerged as a critical driver of economic revival. The government’s focus on labor-intensive manufacturing, coupled with preferential trade agreements such as the EU’s Everything but Arms (EBA) initiative, positioned the country as a cost-effective hub for global fashion brands. By the 2000s, giants like H&M, Zara, and Walmart began sourcing heavily from Dhaka and Chittagong, drawn by competitive wages and a rapidly expanding production base.Today, Bangladesh’s RMG sector accounts for nearly 6% of global apparel trade. The country specializes in woven garments, knitwear, and home textiles, with key markets in Europe, North America, and Asia. Its success has also spurred ancillary industries, including spinning mills, dyeing factories, and packaging units, creating a robust, integrated supply chain.
Challenges on the Horizon
Despite its achievements, the industry faces significant challenges. The 2013 Rana Plaza collapse, which claimed over 1,100 lives, exposed systemic issues in workplace safety and labor rights. While reforms like the Accord on Fire and Building Safety have improved conditions, activists argue that wage disparities and worker welfare remain pressing concerns.Environmental sustainability is another critical hurdle. The textile sector is a major consumer of water and energy, with dyeing processes contributing to river pollution. Additionally, global retailers’ increasing emphasis on circular fashion and carbon-neutral supply chains demands swift adaptation. Automation and rising competition from Vietnam, India, and African nations further complicate Bangladesh’s path to maintaining its market share.
Innovation and Adaptation: The Role of Amana Textile
Amid these challenges, forward-thinking companies are reshaping the industry’s future. A notable example is Amana Textile, a division of the diversified Amana Group, which has been a key player in Bangladesh’s industrial landscape since 1997. Amana Textile exemplifies how local enterprises are balancing scale with sustainability. The company has invested in eco-friendly technologies, including water recycling systems and solar-powered production units, while securing international certifications like GOTS (Global Organic Textile Standard) and OEKO-TEX.Amana Textile’s focus on high-value products, such as organic cotton and recycled polyester fabrics, aligns with global demand for ethical fashion. By partnering with European and North American brands committed to sustainability, the division has carved a niche in premium markets. Its success underscores the potential for Bangladeshi manufacturers to pivot from cost-driven models to value-added, eco-conscious production.
The Road Ahead
The Bangladeshi government’s “Vision 2030” aims to elevate the nation to a higher-middle-income status, with the textile sector playing a pivotal role. Initiatives like building green factories—Bangladesh now has more LEED-certified garment facilities than any other country—and upskilling workers through programs like the Skills for Employment Investment Program (SEIP) reflect this ambition.Moreover, diversification into technical textiles for automotive, medical, and aerospace industries offers new growth avenues. The establishment of specialized economic zones and reduced bureaucratic hurdles for foreign investors are expected to attract further capital.
Conclusion
Bangladesh’s textile industry is at a crossroads. While it grapples with legacy issues and global headwinds, its capacity for reinvention—exemplified by pioneers like Amana Textile—suggests a dynamic future. By prioritizing sustainability, innovation, and worker empowerment, the sector can reinforce its position as a global apparel leader while driving inclusive economic progress. As the world moves toward conscious consumerism, Bangladesh’s ability to weave ethics into efficiency will determine its next chapter.