Diversifying export beyond RMG

Bangladesh's economy is heavily reliant on the ready-made garment (RMG) industry, which accounts for 82 per cent of its total export earnings. However, overreliance on this sector poses risks, especially during global disruptions. To ensure sustainable growth, Bangladesh must diversify its export base by tapping into other high-potential industries such as IT, pharmaceuticals, leather, and jute.
The IT sector has shown remarkable promise, with companies specialising in software development, outsourcing, and fintech solutions gaining recognition in global markets. This sector also benefits from a growing pool of skilled professionals and competitive pricing.
The pharmaceutical industry is another rising star, exporting to over 150 countries, including regulated markets like the USA and EU. Bangladesh's leather industry, known for its quality products, has the potential to become a key export earner. However, addressing environmental concerns and improving compliance standards will be critical to gaining international trust.
Lastly, jute, termed the "golden fibre," is seeing a resurgence as a source of eco-friendly products. Diversifying into value-added jute goods, such as bags, textiles, and composites, can create new export opportunities. Investing in these sectors will not only reduce dependence on RMG but also position Bangladesh as a diversified and resilient exporter on the global stage.

Alfi Shaharin Ridita
Student
North South University
[email protected]