Impact of Garment Companies on the Economy of Bangladesh
The effect of garments sectors on the overall economy of Bangladesh:
Bangladesh is currently one of the 12 greatest exporters of clothes products in U. S. A and U. K. In spite of this, the real situation does not can be found in front of the world. That is they are really not becoming influenced just like before any longer. We can see this by the cost level of our garments products in the world industry. The quantity we are exporting is definitely huge yet at an extremely low price. Inside the statistics the impact may be huge but the condition of Bangladesh can be not bettering at that adequate level. Inside the term paper we will try to determine the cause why the real scenario is like this. It is necessary since the sector is very promising inside the environment of bbangladesh.
Goal and Opportunity:
Bangladesh includes a great comparison advantage in garments items that is low labor cost. Because of this benefit Bangladesh can produce products more readily than other countries. But labor is cheap right here because people who also are related to this sector are via very poor history. Most of them happen to be unskilled, misleading. But if some steps happen to be taken to enhance the quality of labor, the appropriate benefit of this comparative advantage can come out. The purpose of the term newspaper is to overcome this problem and also other related concerns like cost of raw materials, Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, not enough communication, problem in taxes and so forth But in spite of these problems this can be the most profitable sector of Bangladesh if we try to take a lot of steps the following: вЂў Creation of satisfactory raw materials in the area. вЂў Providing training for making skilled staff.
вЂў Lowering of VALUE-ADDED TAX and taxes
вЂў guarantee of security, salary and other facilities in the workers вЂў More advanced of EPZ
вЂў Proper advantage of water houses
вЂў Removal of export concerns etc .
Bangladesh is a third world country. Since other under developed countries, Bangladesh is not much developed in industrial sector. But amazingly the RMG (readymade garments) sector of Bangladesh has taken some significant changes in overall economy by minimizing unemployment rate and raising the amount of export earnings. Eu and U. S. A are the two major importers of the dress products of Bangladesh. On the reverse side, this sector has created a way to unemployed workers. Almost 3. 5 , 000, 000 people are employed in garments in which 85% will be illiterate girls. For a few years the earnings from this sector has increased to a very adequate level. This kind of statistics happen to be showing that the sector may contribute a great deal to promote the economic situation of Bangladesh. The RMG (Readymade Garment) business started in Bangladesh in the 70s but it was then just a casual hard work. The initial consignment of knitwear foreign trade was made in 1973 and the first consignment of weaved garments was made in 1977. Though began later, but it really was the stiched sector that first dint a spot in the market.
Through this term paper we have utilized most of the info provided by Bangladesh garments manufacturing and foreign trade association (BGMEA). In the term paper all of us tried to focus on the probability of the sector in future. Even though trying to do this we have identified some concerns. Since this an extremely promising and profitable sector; Bangladesh govt. has to be caring about these complications to build a powerful position on the globe competition of economy. We also have presented a try to determine some beneficial solutions of the related challenges. Limitations:
The research was on the effect and possibilities of the garments sector on the economic system of Bangladesh. It was even more00 to the objective of making Bangladesh economically more robust, stable and dependable in order that not only domestic investors nevertheless also overseas investors become interested obtain more with this sector. With this step, Bangladesh govt. has to play the vital position. We have only tried to provide some...