RMG industry's role integral to Bangladesh's economy: ADB

02 Sep '16

2 min read

Readymade garments (RMG) industry in Bangladesh has played an important role in accelerating the economic growth. This growth can be increased by diversifying its economy, improving the infrastructure, enhancing its structural transformation and creating meaningful jobs. In order to reduce surplus labour, the economy should grow at over 8 per cent per year.

Improvement in the quality of education, increasing workers’ vocational skills and providing access to finance can lead to the growth of multiple other sectors such as tourism, IT services and pharmaceuticals in the country, says a study released by the Asian Development Bank (ADB) and the International Labour Organisation (ILO).

Some other factors like upgrading technology and effective learning in the workplace can also accelerate productivity and competitiveness.

“The readymade garments sector and overseas remittances have fuelled strong growth of over 6 per cent in the past decade, allowing the economy to recently graduate to middle income status,” said Edimon Ginting, director in ADB’s Economic Research and Regional Cooperation Department.

The study also reveals that a rise in the number of migrant workers can prove to be beneficial. Bangladesh can tap into existing destinations like Bahrain, Qatar, Oman, Singapore as well as some new ones such as Lebanon, Jordan and the Republic of Korea for opportunities.

Accelerating the growth of decent work, a process which is underway under the framework of Bangladesh’s 7th Five Year Plan (FY2016-FY2020), is also recommended by the study. (KT)

Fibre2Fashion News Desk – India

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