Bangladesh knitwear sector has experienced an export increase from US$ 12,049.81 million in FY 2013-14 to US$25,738.20 million in FY 2022-23, with an average growth rate over the ten fiscal years of approximately 10.23%. This growth trajectory reflects a robust and consistent export performance in the knitwear sector.

Dynamics of Bangladesh Knitwear Sector: Contribution to Socio-Economic Development:

The knitwear sector being the largest export sector in Bangladesh, is a major contributor to the country's economy over the past 20 years. It is the largest exporting industry, significantly impacting foreign exchange earnings, exports, industrialization, and GDP. This sector has also played a crucial role in employment generation, women's empowerment, poverty reduction, and health improvement.

Macro Contribution to the Economy:

In the FY 2022-23, the knitwear sector alone contributes 5.67% to GDP, with an additional 2% from the backward linkage sector in the FY 2022-23 It also supports other key sectors like banking, insurance, and logistics. The Export contribution to the sector in the national export is 46.34 % in FY 2022-23 while this share in apparel export is 54.78%.

Employment Generation:

The knitwear industry has created significant employment opportunities, particularly for poor and uneducated individuals transitioning from traditional agriculture. As of Fiscal 2022-23, the sector has generated 1.9 million direct jobs and 0.5 million indirect jobs.

Women Empowerment:

The expansion of the RMG industry has led to significant social changes, with around 1.10 million women, constituting 60% of the total 1.90 million workforces, up from 50,000 in 1980 (World Bank estimate). The employment opportunities in the knitwear industry has provided many poor women with direct access to cash income. Women employed in knitwear sector now contribute to household expenses and education, gaining independence and decision-making power.

Poverty Reduction:

The RMG sector contributed to a 2.5 percentage point reduction in poverty from 2000-2005. Whereas the growth in knitwear exports has positively impacted the service sector, leading to a poverty reduction of 9.10%.

Social Structural Development:

Training and awareness building initiatives by the BKMEA with its different development partners have supported workforce development and accelerated urbanization. The knitwear industry has raised awareness of women's issues such as health, safety, and maternal leave, thereby contributing to social changes in gender dynamics.

Source: BKMEA calculation based on survey and stakeholder consultation

Value Addition and Net Retention from Knitwear industry:

In Bangladesh, normally the knitwear production process starts from cotton. Then the next Production processes to make the finished products are done in our country. Thus Bangladesh knitwear industry is playing a vital role in value addition of Gross Domestic Product (GDP).

Backward Linkage Development:

The strength of Bangladesh's knitwear sector lies in its backward linkage. Entrepreneurs have not only expanded stitching capacity but also invested in allied industries to boost overall sector capacity. Over time, the sector has become nearly self-sufficient in fabric and yarn production. As knitwear exports have grown, so has the backward linkage capacity.

Shipping and Logistics Industry Development:

The knitwear sector has driven the expansion of the shipping industry in Bangladesh. This includes the establishment of container yards, the expansion of port facilities to handle large container trains, and improved cargo handling and storage facilities. In the fiscal year 2022-23, knitwear sector has contributed to US$ 170 billion BDT in the shipping and logistics industry. The Knitwear entrepreneurs also rely heavily on Clearing & Forwarding Agents for customs clearance of inputs and finished products.

Development of Banking and Insurance Sector:

The growth of Bangladesh's knitwear sector has significantly boosted the financial sector. In FY 2022-23, the banking sector earned about 170 billion BD knitwear -related businesses through interest, charges, and L/C fees. More than one-tenth of commercial banks' assets are tied to the RMG and textile sectors.

Development of Banking and Insurance Sector:

The growth of Bangladesh's knitwear sector has significantly boosted the financial sector. In FY 2022-23, the banking sector earned about 170 billion BD knitwear -related businesses through interest, charges, and L/C fees. More than one-tenth of commercial banks' assets are tied to the RMG and textile sectors.

Core Strength of Bangladesh Knitwear Industry

The core strength of Bangladesh's knitwear sector lies in its strong backward linkage. Entrepreneurs have boosted stitching capacity and invested in backward industries that resulting in enhancing the sector's overall capacity in terms of production and export, thus maintaining its competitive advantage in global apparel market.

• Strong backward linkages that supports the industry to add on an average 70 % value addition.;

• A large number of unskilled labor forces who are easily adaptable and trainable to new technology and best practices;

•  A positive mindset of Knitwear entrepreneurs towards embracing best practices and any emerging technology developed for world Textile and Apparel industry;

• The government of Bangladesh   resolute and supportive stance towards bolstering the Apparel industry;

• Duty free and quota free accesses to the markets of several developed and developing countries, including EU, Canada, Japan, South Korea, Australia, Chili, China and India, etc. 

• Bangladesh is a member of Multilateral Investment Guarantee Agency(MIGA) under which protection and safety measures are available;

• Child labor free, Socially and environmentally compliant factories;

• Environmentally compliant ISO, BSCIS, WRAP, OKETEX etc. certified factories;

• High quality diversified knitwear products with comparatively cheap prices.