Bangladesh’s textile and apparel sector has entered a phase of calculated procurement as raw material inflows moderate. In 2025, the country recorded a 3.20 per cent dip in fabric and yarn imports, a development that signifies a departure from the double-digit growth previously seen. While ready-made garment (RMG) exports grew by 8.84 per cent in the fiscal year ending June 2025 to reach $39.35 billion, the contraction in raw material imports highlights a strategic pivot toward inventory optimization and more cautious buying cycles.
Operational volatility dampens mill productivity
The primary catalyst for this procurement slowdown is a persistent domestic energy deficit. Gas pressure in key industrial hubs like Gazipur and Narayanganj frequently falls below 2 PSI, far short of the 10–15 PSI required for continuous spinning and dyeing. The energy volatility has become a direct commercial liability, forcing mid-tier exporters to operate at 30 per cent to 50 per cent capacity, noted an industry analyst. This manufacturing friction, compounded by a 19.1 per cent drop in capital machinery imports, suggests that firms are prioritizing short-term liquidity over long-term expansion as high bank interest rates exceed 11 per cent.
Sustainability as a shield against trade shocks
Despite these structural hurdles, Bangladesh is leveraging its environmental credentials to retain high-value orders from the EU and US. Boasting over 240 LEED-certified factories - the highest globally - manufacturers are increasingly integrating solar power and waste-heat recovery systems to mitigate fuel costs. As the industry faces the ‘LDC graduation tariff cliff’ and rising competition from India and Vietnam, these green investments serve as a defensive buffer, ensuring that the country remains a ‘preferred vendor’ in a supply chain increasingly defined by carbon transparency rather than just cost.
Bangladesh textile and apparel sector accounts for over 80 per cent of national export earnings, primarily serving the European and North American fashion markets. Currently, the industry is shifting from basic cotton knits to synthetic fibers and value-added woven wear. While targeting $100 billion in exports by 2030, current performance focuses on maintaining its $40 billion baseline amid political and energy transitions.
