Overall exports of the Bangladesh recorded an increase of 15.87 percent and accounted for US$14.110 billion in financial year 2007-08. According to the EPB data this growth is mainly driven by the performance of the RMG sector. Total exports earnings of the knit and woven apparel from the country recorded a significant increase in the Financial Year 08. Knit apparel exports from the country exceeded the target for the FY 08.

In the past fiscal year knitwear segment recorded an increase of around 21 percent in their exports and accounted for US$ 5.532 billion which exceeded the target of US$5.465 billion for the fiscal. Woven apparel exports were of value US$5.167 billion with a growth of 10.94 percent and exceeded the target of US$5.400 billion.

Knit and woven apparel are the major exports item for the country and account for about 75 percent of the countries exports. Bangladesh is emerging as one of the major suppliers of the RMG in the world with the availability of the cheap labour and inputs. Bangladesh is giving stiff competition to the neighboring countries.

Export performance in the knit and woven apparel segment of the country during the initial months of the current fiscal is indicating a positive trend for the industry. Although there is a slowdown in the destination countries still in the month of June the exports of knitwear segment were 24 percent up and approached to a value of US$603 million.

During the FY 08 better export performance was an outcome of stable political scenario of the country as well as the steps taken by the government to facilitate the sector and aggressive marketing strategies and better brand positioning in the US markets remained the key factors for the success.

RMG exports of Bangladesh recorded a growth during the period inspite of currency appreciation in year and also the rising input cost where the global fuel prices and domestic electricity and gas prices recorded a significant increase. Exports performance of the sector was an outcome of the productivity and efficiency of the industry supported by absence of strikes as well as increased port efficiency.

To facilitate the sector the government is providing technical as well financial support to the export oriented units. Various technology upgradation and skill development programmes are run by the government with the help of the Japan to provide an edge to the sector at the quality front. In the month of July this year government of Bangladesh with the help of Asian Development Bank and World Bank created a 5 billion Taka (US$ 73 million) fund for subsidized loans to the Small Medium Enterprise segment, out of which 10 percent is necessarily to be allocated to the women entrepreneurs.

Bangladesh is emerging as one of the major sourcing destinations for the sweater items due to rising cost of the Chinese production and appreciation of the Chinese currency as well as the reluctant behavior of the neighboring countries due to high labour requirement in the segment. According to the EPB data exports of the sweater products was US$1.47 billion during FY 2007-08 against US$1.24 billion in FY2006-07. In anticipation of the heavy demand of these products players in the segment are extending their capacity to cope up the demand side pressure. 

Comparative performance of Bangladesh

Global exports of the readymade garments decreased by 11.64% in 2007 as compared to previous year. Bangladesh stands at 160th position among the RMG exporting countries. RMG exports of Bangladesh in the year 2006 recorded an increase of 29.31% as compared to 2005.RMG exports of Bangladesh had an increase over the period 2003 to 2006 illustrating a positive trend in the performance. India stood at the position no 7 and China remained at the top position.