Apparel Industry Navigates Challenges, Sets Ambitious Goals

14 June 2023, Mumbai

In the face of unprecedented global economic turmoil, the Bangladesh apparel industry is navigating through a turbulent time, grappling with rising production costs, idle capacity, and uncertain business forecasts.

Turbulent Times

Despite these challenges, the industry achieved a turnover of $43 billion and anticipates notable growth in the current fiscal year.

Targeting $100 Billion Apparel Export by 2030

With resilience, experience, and optimism, industry players strive to stay on course toward their vision of reaching $100 billion in apparel exports by 2030. However, achieving this ambitious goal requires a focus on industry capability enhancement, including vertical integration, innovation, diversification, and technological upgrades, while also adapting to Environmental, Social, and Governance (ESG) requirements.

Inflation Challenges in Global Trade and Outsourcing

One of the top-rated challenges in global trade and outsourcing is inflation, affecting retail businesses and forcing regulators to withdraw interest rate caps to control inflation.

Government Initiatives Offer Support

Vision for the Future; To support export-oriented companies affected by the Covid-19 pandemic, the government has introduced initiatives such as the "pre-shipment credit refinancing scheme" and the "Export Facilitation Fund."

These schemes provide support in the form of reduced interest rates and increased access to working capital and raw material financing.

These measures offer some relief to the industry, aiding in meeting working capital needs and securing funds for raw material sourcing at a lower cost.

CREDITS: BGMEA Press Release.

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