Industrialization plays a key role in economic development, and Bangladesh’s textile industry—rooted in a 500-year history—has grown significantly, particularly in yarn and fabric production. With globalization shifting textile manufacturing to developing countries, Bangladesh has emerged as the world’s second-largest apparel exporter.

In the Fiscal Year 2023–24, Bangladesh’s total RMG exports reached $38.14 billion. Of this, woven garments contributed $19.28 billion, nearly half of the total, while knitwear accounted for $16.87 billion. On the surface, these figures reflect a strong performance. But underneath lies a serious challenge: local weaving mills can only meet about 40% of the woven fabric demand, with the remaining 60% being imported.

Despite having around 800 weaving mills, much of the fabric used in our apparel industry still comes from abroad. Why? For many RMG manufacturers, importing woven fabric is often cheaper than sourcing it locally—even after freight and duties are factored in.

Imagine running a factory producing shirts for a European buyer. You need consistent quality at a competitive price. If sourcing fabric from China or India costs less than buying from a local mill, the decision becomes clear.

According to trade data, Bangladesh primarily imports woven fabrics from China, India, Pakistan, and Indonesia. China alone accounts for over 40% of the total imports, followed by India and Pakistan due to their price competitiveness and regional proximity.

So, why are these countries consistently ahead of us?

1. Stronger Backward Linkage & Vertical Integration

Countries like China and India have well-integrated textile value chains—from fiber production to finished fabric. This reduces production costs, shortens lead times, and allows for scale. In contrast, most Bangladeshi weaving mills operate in isolation, with limited connections to spinning, dyeing, or finishing units.

2. Advanced Technology & Automation

Chinese and Indian weaving units invest in state-of-the-art high-speed looms, automation, and real-time monitoring. These enable high output with consistent quality. Many Bangladeshi mills, however, still use outdated shuttle looms or semi-automated equipment, resulting in lower productivity and quality inconsistencies.

3. Policy Support and Subsidies

Governments in these countries provide targeted support: subsidized loans, export incentives, tax rebates, and funds for technological upgrades. In Bangladesh, high interest rates, limited access to affordable capital, and insufficient weaving-specific policies put local mills at a disadvantage.

4. Economies of Scale

Large domestic demand and established export infrastructure give these countries the benefit of economies of scale. Bangladesh’s weaving sector is mostly fragmented and dominated by small to mid-sized mills, unable to match the pricing power of bigger players abroad.

5. Product Diversification & R&D

Suppliers from China and India offer a diverse range of fabrics, often keeping pace with changing global fashion trends. Bangladeshi mills, focused mainly on basic woven items, often lack the R&D and design capacity to compete in high-value or niche segments.

Reducing Import Dependency: The Way Forward

If Bangladesh wants to strengthen its position as a global RMG powerhouse and maximize the value addition from exports, reducing dependency on imported woven fabrics is not just an option—it’s a necessity.

Here are some strategic areas where we need to act:

1. Investment in Technology and Machinery

Upgrading machinery is critical. Most mills still use low-efficiency looms. A nationwide push for modernization—through soft loans or subsidies—can enable mills to adopt air-jet or rapier looms, automated quality control, and real-time monitoring tools.

2. Stronger Backward Linkage Integration

Weaving mills must be better integrated with spinning, dyeing, and finishing units to ensure a smoother supply chain and faster lead times. Promoting cluster-based zones that bring together spinning, weaving, dyeing, and finishing facilities can help optimize logistics and production timelines. 

3. Encouraging Large-Scale Players

Most weaving units in Bangladesh are small to mid-sized. Encouraging large-scale, vertically integrated mills through tax incentives and infrastructure support could drive down per-unit costs and allow these mills to compete with international suppliers.

4. Product Diversification and R&D Support

Bangladesh must move beyond basic woven fabrics. Investment in design labs, textile R&D, and innovation is necessary to develop high-value fabrics like stretch cotton, technical textiles, and sustainable blends. Public-private partnerships and university collaborations can drive this innovation. 

5. Training and Skill Development

Operating modern weaving machines requires skilled manpower. A nationwide training program, in collaboration with vocational institutes and industry bodies, can upskill workers in fabric engineering, machine operation and maintenance, quality assurance in woven fabric production.

6. Policy Support and Incentives

To encourage industry growth, the government should implement:

• Duty-free import of advanced machinery
• Export incentives for woven fabric producers
• Energy and utility priority for weaving zones
• A ‘Woven Fabric Development Fund’ to support R&D and capacity building

7. Promoting Local Sourcing in RMG

Finally, RMG buyers and local manufacturers should be encouraged to source fabric locally, wherever feasible. If fabric quality, price, and lead time meet buyer expectations, local sourcing becomes a win-win for both the apparel exporters and the national economy.

The Role of Textile Today Business Hub (TTBH)

Reducing import dependency also requires strengthening connections across the supply chain. This is where platforms like Textile Today Business Hub (TTBH) come in.

TTBH gives local weaving mills and textile input suppliers a platform to showcase their capabilities to apparel manufacturers. Verified company profiles increase visibility and build trust, encouraging local sourcing.

Beyond visibility, TTBH promotes industry collaboration, knowledge sharing, and innovation by connecting mill owners, machinery suppliers, R&D institutions, and investors. It helps bridge the gap between buyers and suppliers, strengthening the ecosystem needed for a robust, self-reliant textile sector.

Solving the woven fabric import dependency issue requires more than just policy reform—it demands ecosystem-wide collaboration. With the right strategy, investment, and platforms like TTBH supporting visibility and connection, Bangladesh has a clear path to becoming not only a top garment exporter, but also a competitive fabric-producing nation.