Bangladesh Garment Manufacturers and Exporters Association (BGMEA) believes, a 4 per cent cash incentive on export-oriented apparel items made from imported raw material can help double Bangladesh’s garment exports. Faruque Hassan, President, BGMEA feels, it may also increase the supply of raw materials and motivate buyers to place more orders. Further, it may increase investment in knitting, weaving, processing, brushing, sewing, bleaching, dyeing, printing, washing and finishing industries, helping Bangladesh retain market benefits after the LDC graduation, he adds.

However, spinners believe, the move will deal a devastating blow to the country's textile industry as it will involve subsidizing foreign companies with public money. Abdul Hai, Former President, Bangladesh Textile Mills Association (BTMA), also agrees, this will nullify all the huge investments made in the textile sector besides leading to millions of job losses. BGMEA has also proposed a 10 per cent incentive for non-cotton garment exports, saying it will boost exports as well as investment and employment.