Historical Background of the Bangladeshi Garments Industry

Discover the journey of Bangladesh’s garments industry — from its humble beginnings in the 1970s to becoming a global powerhouse in apparel manufacturing.

Discover the historical background of the Bangladeshi garments industry — from its early beginnings in the 1970s to becoming a global leader in apparel exports by 2026. Learn how Bangladesh built its world-class RMG sector.

The Bangladeshi garments industry stands today as one of the world’s leading apparel exporters, playing a vital role in the country’s economy and global fashion supply chain. But the journey to becoming a global powerhouse in ready-made garments (RMG) began decades ago — shaped by resilience, ambition, and the power of human labor.

Let’s explore the historical background of the garments industry in Bangladesh, from its early roots to its present-day dominance.

1. The Early Beginnings (1950s–1970s)

Before independence, Bangladesh (then East Pakistan) had a limited industrial base. The textile sector mainly focused on traditional handloom weaving, catering to domestic needs rather than export markets.

After independence in 1971, the newly formed nation faced economic struggles, limited infrastructure, and a shortage of foreign investment. The readymade garments (RMG) sector began modestly, with only a few factories producing clothing for the local market.

A major turning point came in the late 1970s, when visionary entrepreneurs began exploring the export potential of garments — inspired by growing global demand for affordable clothing.

2. The Pioneering Phase (Late 1970s–1980s)

The foundation of Bangladesh’s modern garment industry was laid in 1978 with a partnership between Desh Garments Ltd. and Daewoo Corporation of South Korea. This collaboration was historic — it brought in training, technology transfer, and management skills that later shaped the country’s entire RMG ecosystem.

After training more than 100 Bangladeshi workers and managers in South Korea, many of them went on to establish their own factories upon returning home. This marked the true beginning of Bangladesh’s export-oriented garment industry.

By the mid-1980s, Bangladesh started exporting garments mainly to Europe and the United States, taking advantage of the Multi-Fiber Arrangement (MFA) that offered favorable trade quotas to developing countries.

3. Rapid Expansion and Global Growth (1990s–2000s)

During the 1990s, Bangladesh experienced explosive growth in garment exports. Several key factors fueled this expansion:

• Low labor costs, making production highly competitive.

• Female workforce participation, empowering millions of women economically.

• Supportive government policies, including tax incentives and export-processing zones (EPZs).

• Rising global demand for affordable fashion.

By the early 2000s, the RMG industry had become Bangladesh’s largest export sector, contributing more than 75% of total export earnings. Major global retailers and brands such as H&M, Walmart, Zara, and Gap began sourcing from Bangladesh due to its cost efficiency and skilled labor.

4. Overcoming Challenges (2010s)

Despite its success, the industry faced major challenges — particularly related to labor safety and compliance. The tragic Rana Plaza collapse in 2013, which killed over 1,100 workers, was a turning point that shook the global fashion world.

In response, international initiatives like the Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety were launched. Thousands of factories underwent inspections and improvements, transforming Bangladesh’s RMG sector into one of the most compliant and safety-conscious in the world.

This era also saw investments in sustainability, automation, and eco-friendly production, with many factories earning LEED (Leadership in Energy and Environmental Design) certification.

5. The Modern Era (2020s–2026 and Beyond)

Today, Bangladesh is the second-largest garment exporter in the world, after China. The industry contributes nearly 85% of the country’s total exports and employs around 4 million workers, most of them women.

Modern Bangladeshi factories now focus on:

• Sustainable and green manufacturing

• High-value apparel such as denim, sportswear, and technical garments

• Digital innovation and automation (Industry 4.0)

• Ethical sourcing and fair trade practices

The vision for 2026 and beyond is to expand into diversified markets and move up the value chain with design, branding, and advanced manufacturing.

6. Economic and Social Impact

The success of the garments industry has deeply transformed Bangladesh’s economy and society:

• Economic Growth: The RMG sector contributes over 12% of GDP.

• Employment: Around 4 million people, mostly rural women, earn livelihoods through the sector.

• Empowerment: Women’s participation in the workforce has increased independence and improved living standards.

• Industrialization: The industry spurred infrastructure, logistics, and foreign investment growth.

7. Future Outlook

As Bangladesh prepares to graduate from Least Developed Country (LDC) status by 2026, the garments industry will continue to play a vital role in ensuring sustainable economic growth.

Focusing on quality, diversification, green energy, and brand reputation will help the country maintain its global competitiveness and reputation for dependable, ethical production.

Conclusion

The historical background of the Bangladeshi garments industry is a story of determination, transformation, and global success. From a small, export-driven experiment in the 1970s to becoming a global leader in 2026, the journey reflects the resilience and hard work of millions of Bangladeshi workers and entrepreneurs.

With sustainability and innovation leading the next chapter, Bangladesh’s garments industry continues to stitch together not only fabrics but the very fabric of its national progress.