The RMG (ready-made garments) sector has had significant socio-economic impacts in Bangladesh. It contributes over 80% of total export earnings and 10.5% of GDP. The sector employs over 4.5 million workers, most of whom are women. It has empowered women, increased savings, reduced child labor, and helped control population growth. Moving forward, the sector aims to build brand recognition, expand into new markets, and prepare for upcoming automation.

1. RMG SECTOR & IT’S
SOCIO-ECONOMIC
IMPACT IN
BANGLADESH

2. PRESENTED BY
Mahbub Alam Rabbe

3. “There must be a reason to dirt
a fine white cloth with print.
Armi Ratia
Founder, Marimekko Oy (Finland)
33

4. OUTLINE
4
Introduction
Contribution of RMG Sector In Economy
Economic Growth Analysis of RMG Sector Present & Past
Social Impacts of The RMG Sector
Looking Into The Future
Conclusion

5. Introduction

6. “RMG” a.k.a Ready Made Garments
6
Ready-made garments are mass-
produced finished textile products of
the clothing industry. They are not
custom tailored according to
measurements, but rather
generalized according to
anthropometric studies. They
are made from many different fabrics
and yarns.

7. RMG Sector Of Bangladesh
7
The Ready Made Garments Industry Acts As
A Catalyst For The Development Of
Bangladesh
The Sector Accounts For 81% Of Total
Earning Exports Of The Country

8. Contributions Of RMG
Sector In Economy

9. GDP Growth By Sector
9
Industry is the
most crucial
component in GDP
growth of
Bangladesh

10. Bangladesh’s RMG Export in GDP
10
Major Export Products
In Bangladesh & Their
Contribution In GDP
75.65
4.22
2.6
1.77 1.21 0.72 0.06
11.56
RMG Frozen Food Jute Goods
Chemical Products Raw Jute Agri Products
Tea Others

11. Export Of RMG & Total Export Of Bangladesh
11
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
EXPORT OF RMG (IN MILLION US$) 9211.23 10699.8 12347.77 12496.72 17914.46 19089.69 21515.73
TOTAL EXPORT OF BANGLADESH (IN
MILLION US$)
12177.86 14110.8 15565.19 16204.65 22924.38 24287.66 27018.26
0
5000
10000
15000
20000
25000
30000
Value
Comparative Statement on Export Of RMG And Total Export Of Bangladesh

12. Contribution To National Economy
12
 The sector contributes 38% industrial value addition.
 Earns around 78% of total export earnings.
 Employs around 4.5 million workforce of which majority is women
 Generates huge cliental base for Banking, Insurance, Shipping,
 Transport, Hotel, Cosmetics, Toiletries and related other economic
activities.
 Provides indirect employment to 0.80 million workforces in accessories
industries related to garments.
 Provides 0.2 million job to waste recycle industry related to RMG sub-
sector.
 Contributes 10.50% to GDP through RMG sub-sector.

13. Economic Growth
Analysis of RMG
Sector :
Present & Past

14. Value & Quantity Of Total Apparel Export
Fiscal Year Basis
14
9211.23
10699.8
12347.77
12496.72
17914.46
19089.73
21515.73
0
5000
10000
15000
20000
25000
TOTAL APPAREL EXPORT IN
MN.US$ WOVEN
TOTAL APPAREL EXPORT IN
MN.US$ KNIT
TOTAL APPAREL EXPORT IN
MN.US$ TOTAL
Total Apparel
Export In Million
Dollars
Source:
Data Source Export
Promotion Bureau ;
Compiled By
BGMEA

15. Bangladesh’s RMG Export To World
15
0
10
20
30
40
50
60
70
80
2010-
11
2011-
12
2012-
13
2010-
11
2011-
12
2012-
13
2010-
11
2011-
12
2012-
13
Woven Knit Total
EU % of World 42.81 46.31 46.87 72.87 73.04 70.55 58.72 59.59 58.4
% of USA 41.58 36.61 35.02 11.8 10.69 10.8 25.82 23.73 23.22
% of Canada 5.48 4.93 4.69 4.57 4.24 4.41 4.99 4.58 4.56
Growthinworld
EXPORT growth to the World

16. Social Impacts Of
RMG Sector

17. Social Impacts Of RMG Sector
17
Women
Empowerme
nt
Savings
Child
Labor
Population
Control
Employment

18. Women Empowerment
18
Bangladesh India Pakistan Nepal Sri Lanka
90%
34%
10%
15%
87%
76%
13%
60%
38%
52%
Female Contrbution in South Asia
Percent of Female Percentage of Total Export

19. Savings
19
Regular
earning
Workers
investments on
family pension
schemes etc.
create savings.
15 years and
above had their
own bank
accounts.
A higher
proportion of
workers (30
percent) had
bank accounts
in the EPZ.
Women are on
average better
savers than
men.
Women save
about 7.6
percent of their
otherwise small
income.

20. Child Labor
20
In 2000 a second MOU was signed between BGMEA and ILO focused
•A fact-finding survey to determine the extent of child labor in the garment industry;
•The establishment of an education program;
•The establishment of a monitoring and verification system;
•The provision of income compensation in the farm of a monthly stipend of Tk. 300, the equivalent
of (at that time) US$ 7
ILO 2005 baseline survey on child labor in hazardous situations found
•The one sector where legal restrictions on use of child labor showed to be
successfully forced was the Ready-made Garment industry, while around 532,000
child laborers were working in hazardous situations in other industries.

21. Population Control
21
Employment opportunities especially for women
created positive impact on family planning and
population control in the country.
Independent working-women are getting more
conscious about the advantage of a small family.
Working adolescent girls tend to avoid early
marriage.
The mean age at marriage for girls working in RMG
factories tend to be higher than the national
average.

22. Employment
22
2.2 2.4
2.8
3.5 3.6 3.6
2005-06 4220
Factory
2006-07 4490
Factory
2007-08
4743Factory
2008-09 4925
Factory
2009-10 5063
Factory
2010-11 5150
Factory
Employment (in million workers)
Employment (in million workers)
Source: Bangladesh Garments Manufacturers & Exportes Association (BGMEA)

23. Looking Into The
Future

24. Future Agendas
24
Brand Creation &
Recognition
Development Of
Intellectual
Properties
Steady Expansion
In More Foreign
Markets
Major Growth In
Home Market
Being Prepared For
Upcoming
Automation
Revolution
Practical Hands-On
Study For Textile
Engineers &
Fashion Designers

25. Conclusion

26. Thank You Everyone
www.mahbubrabbe.com
Linked-in: www.linkedin.com/in/mahbub-alam-rabbe-
984a17118/
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