History of textile production in Bangladesh Textile industry in Bangladesh

a woman in dhaka clad in fine bengali muslin, 18th century.

under mughal rule, bengal subah center of worldwide muslin , silk trades during 16th 18th centuries. during mughal era, important center of cotton production bengal, particularly around capital city of dhaka, leading muslin being called daka in distant markets such central asia. bengal exported cotton , silk textiles markets such europe, indonesia , japan. bengal produced more 50% of textiles , around 80% of silks imported dutch asia, example.

bengal conquered british east india company after battle of plassey in 1757 , bengal presidency founded in 1765. british colonization forced open bengali market british goods, while @ same time britain implemented protectionist policies such bans , high tariffs restricted bengali imports britain. raw cotton imported without taxes or tariffs british factories, used them manufacture textiles, many of exported bengal. british economic policies led deindustrialization in bengal.

post-1971

from 1947 1971 textile industry, industries in east pakistan, largely owned west pakistanis. during period, in 1960s, local bengali entrepreneurs had set own large textile , jute factories. following separation east pakistan newly formed bangladesh lost access both capital , technical expertise.

until liberation of bangladesh in 1971, textile sector part of process of import substitution industrialization (isi) replace imports. after liberation, bangladesh adopted export-oriented industrialization (eoi) focusing on textile , clothing industry, particularly readymade garment (rmg) sector. after founding of bangladesh (1971), tea , jute export-oriented sectors. constant threat of flooding, declining jute fiber prices , significant decrease in world demand, contribution of jute sector country’s economy deteriorated.

in 1972 newly formed government of sheikh mujibur rahman head of awami league, enacted bangladesh industrial enterprises (nationalization) order, taking on privately owned textile factories , creating state-owned enterprise (soe) called bangladesh textile mills corporation (btmc). president rahman promoted democracy , socialist form of capitalism. btmc never managed match pre-1971 output , in every year after 1975–1976 fiscal year, lost money. until 1980s state owned spinning mills in bangladesh , 85 percent textile industry s assets (not including small businesses). under 1982 new industrial policy (npi) large number of these assets including jute mills , textile mills privatized , returned original owners.

in devastating famine in 1974, 1 million people died, of starvation caused in part flooding of brahmaputra river in 1974, , steep rise in price of rice. partly in response economic , political repercussions of famine, bangladeshi government shifted public policy away concentration on socialist economy, , began denationalize, disinvest , reduce role of public sector in textile industry while encouraging private sector participation. 1974 new investment policy restored rights both private , foreign investors. bangladesh s development model switched state-sponsored capitalist mode of industrial development state-owned enterprises (soe) private sector-led industrial growth.

post-liberation war, bangladesh continued focus on agricultural sector feed rural , poor masses. in 1978, there 9 export-oriented garment manufacturing units. same year first direct export of garments, 10,000 shirts parisian firm, shipped bangladeshi firm. bangladeshi government began realize potential industry flourish , offered development stimulus such duty-free import machinery , raw materials, bonded warehouse facilities , cash incentives.