The economy of Bangladesh is a rapidly developing market-based economy. Its per capita income in 2010 was est.

US$1,700 (adjusted by purchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 43rd largest economy in the world in 2010 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% p.a. over the past few years. More than half of the GDP belongs to the service sector, a major number of nearly half of Bangladeshis are employed in the agriculture sector, with RMG, textiles, leather, jute, fish, vegetables, leather and leather goods, ceramics, fruits as other important produce. Remittances from Bangladeshis working overseas, mainly in the Middle East is the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earning. Ship building and cane cultivation have become a major force of growth. GDP's rapid growth due to sound financial control and regulations have also contributed to its growth. However, foreign direct investment is yet to rise significantly. Bangladesh has made major strides in its human development index. The land is devoted mainly to rice and jute cultivation as well as fruits and produce, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Bangladesh's growth of its agro industries is due to its rich deltaic fertile land that depend on its six seasons and multiple harvests. Improving at a very fast rate, infrastructure to support transportation, communications, power supply and water distribution are rapidly developing. Bangladesh is limited in its reserves of oil, but recently there was huge development in gas and coal mining. The service sector has expanded rapidly during last two decades, the country's industrial base remains very positive. The country's main endowments include its vast human resource base, rich agricultural land, relatively abundant water, and substantial reserves of natural gas, with the blessing of possessing the worlds only natural sea ports in Mongla and Chittagong, in addition to being the only central port linking two large burgeoning economic hub groups SAARC and ASEAN.

Economy of Bangladesh Kawran Bazar, a commercial hub of Bangladesh Rank 45 Currency Bangladesh Taka (BDT) Fiscal year 1 July - 30 June Trade organizations WTO, WCO, IOR-ARC, SAFTA, D8 Statistics GDP $104.9 billion (2010 est.) GDP growth 6% (2010 est.) GDP per capita $1,700 (2010 est.) GDP by sector agriculture: 18.6%, industry: 28.5%, services: 53% (2010 est.) Inflation (CPI) 8.1% (2010 est.) Population below poverty line 40% (2010 est.) Gini index 33.2 (2005) Labour force 73.86 million (2010) Labour force by occupation agriculture: 45%, industry: 30%, services: 25% (2008) Unemployment 5.1% (2010 est.) Main industries cotton textiles, jute, garments, tea processing, paper newsprint, cement, chemical fertilizer, light engineering, sugar

Ease of Doing Business Rank 122nd[1] External Exports $19.24 billion (2010 est.) Export goods garments, frozen fish and seafood, jute and jute goods, leather Main export partners US 22.1%, Germany 14.1%, UK 8.5%, France 6.8%, Netherlands 6.1% (2010) Imports $24.72 billion (2010 est.) Import goods machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement Main import partners China 18.9%, India 12.7%, Singapore 6%, Malaysia 4.7%, Japan 4% (2010) Gross external debt $24.6 billion (31 December 2010 est.) Public finances Public debt 35.4% of GDP (2010 est.) Revenues $11.41 billion (2010 est.) Expenses $15.87 billion (2010 est.) Economic aid $0.957 billion (2010 est.) Credit rating BB- (Domestic) BB- (Foreign) BB- (T&C Assessment) (Standard & Poor's)[2] Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

The textile industry in Bangladesh, now the sixth largest exporter of apparel in the world after a decade of spectacular economic growth, has positioned itself to benefit from the current global economic crisis. Production of ready-made garments (RMG) and knitwear is at an all-time high. Many challenges remain, but the overall outlook for this nation's industry remains bright. Few nations have gone through as much dramatic change over the past several decades as the Indian Ocean nation of Bangladesh. A rich and fertile agricultural land, Bangladesh (once a part of the state of Bengal in India) made its initial impact in the modern textile industry as the world's largest producer of jute ("the Golden Fiber of Bangladesh") with an 80% share of the market in 1947, before production in other nations and use of synthetic fibers eroded this hegemony. An impoverished and densely-populated nation, Bangladesh has made great strides in economic development since the late 1970s, and was included in Goldman Sach's 2005 list of the "next 11" growing economic nations behind Brazil, Russia, India, and China. Status of Textile Industry in Bangladesh The textile industry is an important segment of Bangladesh's manufacturing industry, playing a critical role in its economic development. Textile exports (including apparel) accounted for 76% of the national export in FY 2007, an increase from 41% in FY 1989 and 66% in FY 1995. Until the liberation of Bangladesh, the textile sector was primarily an import-substitution industry. It began exporting readymade garments (RMG) including woven, knitted, and sweater garments in 1978, which grew spectacurlarly during the next two and a half decades-from US$3.5 million in 1981 to US$10.7 billion in FY 2007. Apparel exports grew, but initially, the RMG industry was not adequately supported by the growth up and down the domestic supply chain (e.g., spinning, weaving, knitting, fabric processing, and the accessories industries). Until FY 1994, Bangladesh's RMG industry was mostly dependent on imported fabrics-the Primary Textile Sector (PTS) was not producing the necessary fabrics and yarn. Since then, production has increased in all Bangladesh PTS sub-sectors. Major Markets Bangladesh was the sixth-largest exporter of apparel in the world after China, the EU, Hong Kong, Turkey, and India in 2006. That year, Bangladesh's share in world apparel exports was 2.8%. The US was the largest single market with US$3.23 billion in exports, a 30% share in 2007. Today, the US remains the largest market for Bangladesh's woven garments taking US$2.42 billion, a 47% share of Bangladesh's total woven exports. The European Union remains the largest regional destination-Bangladesh exported US$5.36 billion in apparel; 50% of their total apparel exports. The EU took a 61% share of Bangladeshi knitwear with US$3.36 billion exports.

Ready-Made Garments in Bangladesh The journey of the RMG industry started in early 1980s. Unique ideas like the bonded warehouse license and back-to-back letter of credit concepts propelled the industry forward. The hurdles of the Multi Fibre Arrangment (MFA) quotas in 1985 and the Harkin Bill in 1994 were great challenges for the industry, as were the phasing out of MFA quotas in 2004 and the European Union Generalized System of Preferences (GSP) scheme. Although there was concern that the MFA phase-out would shut down the industry, the Bangladesh textile sector actually grew tremendously after 2004 and reached an export turnover of US$10.7 billion in FY 2007. Bangladesh's export trade is dominated by the RMG industry. The sector currently employs 2.5 million people-about 40% of total manufacturing (85% of these employees are women)-and accounts for 76% of the country's export earnings and 10% of its GDP. Manufacturers have successfully maintained product quality, commitment to buyers, and social compliance, making Bangladesh a reliable apparel sourcing destination. Bangladesh's RMG industry does business with top buyers around the world including Wal-Mart, Tesco, Hennes & Mauritz, Marks & Spencer, GAP, Nike, JCPenney, Sears, Zara, and Carrefour.

Knitwear: Export Growth Leader in FY 2007 By achieving a 21% growth in exports, Bangladesh's knitwear sector pulled export growth up to 16% in FY 2007. With a value of US$5.5 billion, the knitwear sector emerged as Bangladesh's largest export-earning sector, followed by the woven sector with an export value of US$5.2 billion and an 11% growth rate. Knitwear (39%) and woven (37%) sector contributions jointly composed 76% of Bangladesh's national exports. Currently, the knitwear sector is recognized as a global industry in Bangladesh with improved social compliance and a growing understanding of environmental safety and hazardous chemicals. In the future, Bangladeshi knitwear production growth should continue to accelerate and is expected to export more than US$10 billion in product annually within the next two to three years. Decoupled from the Global Recession? Efficiency and productivity improvements are key for the garment and textile sectors to survive in this time of global financial recession, according to economists and exporters attending a seminar in November 2008 organized by Bangladesh Garments Manufacturers' & Exporters' Association (BGMEA). They said no adverse impact was noticed in the export of Bangladeshi garment items following the global financial meltdown. The downward trend of cotton price is also a plus point for Bangladesh as the country's garment manufacturing is mainly dependent on imported cotton. The price of cotton declined to less than 50 cents per pound from its previous 70 cents per pound. The worldwide price decline of other commodities such as petroleum products will also be beneficial. There are some factors helping to insulate Bangladesh from the effects of the current recession. These include limited Foreign Direct Investment (FDI) inflow, an insulated capital market, the lack of foreign portfolio investment, a limited exposure to foreign securities markets, and a controlled financial environment. The experts at the November 2008 BGMEA seminar concluded that Bangladesh is more or less decoupled from the rest of the world with regards to the effects of the economic recession. Improve Skill and Productivity to Survive According to Vivek Gogia of Alster International Bangladesh, factories should start taking the necessary steps to improve their competitiveness for maintaining and growing their share of the RMG market. Factories must diversify product lines (i.e., by producing high-value designed garments instead of only basic t-shirts) where there are very few factories and huge potential, as well as producing more value-added garments. To improve the design element, design teams should be created that travel to fashion centers around the world, keeping pace with the latest trends, designs, and fabrics. Accordingly, factories should invest in plant and machinery upgrades to keep a competitive edge in world markets. Factories should also maximize their productivity by investing in time and motion studies and creating separate planning departments to ensure smooth production flow and to optimize productivity. The marketing element is by and large missing at these factories, and remain dependent on their customers to bring orders into the country. Going forward, they should adopt a proactive approach and recruit customers that have not traditionally purchased Bangladeshi goods. Concluding Remarks As the Bangladeshi textile sector keeps expanding, the country's weak infrastructure may potentially threaten continued growth. The industry has set a target of US$25 billion in garment exports by 2013, which would create an additional 1.4 million job opportunities within the sector and subsequently open up opportunities across different occupations. To make it happen, entrepreneurs are gradually moving to a higher value-added niche market, changing from factory-driven to marketdriven processes, developing designs and collections, enhancing productivity, and strengthening the industry down the supply chain for the sector. The textile industry in Bangladesh may provide market alternatives to those looking for growth opportunities in the midst of the current global recession. Economy of Bangladesh From Wikipedia, the free encyclopedia Economy of Bangladesh

Kawran Bazar, a commercial hub of Bangladesh Rank 45 Currency Bangladesh Taka (BDT) Fiscal year 1 July - 30 June Trade organizations WTO, WCO, IOR-ARC, SAFTA, D8 Statistics GDP $104.9 billion (2010 est.) GDP growth 6% (2010 est.) GDP per capita $1,700 (2010 est.) GDP by sector agriculture: 18.6%, industry: 28.5%, services: 53% (2010 est.) Inflation (CPI) 8.1% (2010 est.) Population below poverty line 40% (2010 est.) Gini index 33.2 (2005) Labour force 73.86 million (2010) Labour force by occupation agriculture: 45%, industry: 30%, services: 25% (2008) Unemployment 5.1% (2010 est.) Main industries cotton textiles, jute, garments, tea processing, paper newsprint, cement, chemical fertilizer, light engineering, sugar Ease of Doing Business Rank 122nd[1] External Exports $19.24 billion (2010 est.) Export goods garments, frozen fish and seafood, jute and jute goods, leather Main export partners US 22.1%, Germany 14.1%, UK 8.5%, France 6.8%, Netherlands 6.1% (2010) Imports $24.72 billion (2010 est.) Import goods machinery and equipment, chemicals, iron and steel, textiles, foodstuffs, petroleum products, cement Main import partners China 18.9%, India 12.7%, Singapore 6%, Malaysia 4.7%, Japan 4% (2010) Gross external debt $24.6 billion (31 December 2010 est.) Public finances Public debt 35.4% of GDP (2010 est.) Revenues $11.41 billion (2010 est.) Expenses $15.87 billion (2010 est.) Economic aid $0.957 billion (2010 est.) Credit rating BB- (Domestic) BB- (Foreign) BB- (T&C Assessment) (Standard & Poor's)[2] Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars The economy of Bangladesh is a rapidly developing market-based economy.[3] Its per capita income in 2010 was est.

US$1,700 (adjusted by purchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 43rd largest economy in the world in 2010 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% p.a. over the past few years. More than half of the GDP belongs to the service sector, a major number of nearly half of Bangladeshis are employed in the agriculture sector, with RMG, textiles, leather, jute, fish, vegetables, leather and leather goods, ceramics, fruits as other important produce. Remittances from Bangladeshis working overseas, mainly in the Middle East is the major source of foreign exchange earnings; exports of garments and textiles are the other main sources of foreign exchange earning. Ship building and cane cultivation have become a major force of growth. GDP's rapid growth due to sound financial control and regulations have also contributed to its growth. However, foreign direct investment is yet to rise significantly. Bangladesh has made major strides in its human development index.[4] The land is devoted mainly to rice and jute cultivation as well as fruits and produce, although wheat production has increased in recent years; the country is largely self-sufficient in rice production.[4][4] Bangladesh's growth of its agro industries is due to its rich deltaic fertile land that depend on its six seasons and multiple harvests.[4] Improving at a very fast rate, infrastructure to support transportation, communications, power supply and water distribution are rapidly developing.[4] Bangladesh is limited in its reserves of oil, but recently there was huge development in gas and coal mining. The service sector has expanded rapidly during last two decades, the country's industrial base remains very positive.[4] The country's main endowments include its vast human resource base, rich agricultural land, relatively abundant water, and substantial reserves of natural gas, with the blessing of possessing the worlds only natural sea ports in Mongla and Chittagong, in addition to being the only central port linking two large burgeoning economic hub groups SAARC and ASEAN.[4] Contents [hide] 1 Economic history o 1.1 Macro-economic trend 2 Economic outlook 3 Economic sectors o 3.1 Agriculture o 3.2 Manufacturing & Industry 3.2.1 Textile sector 4 Investment o 4.1 2010-11 market crash 5 External trade 6 Overview 7 See also 8 References 9 External links [edit] Economic history East Bengalthe eastern segment of Bengal, a region that is today Bangladeshwas a prosperous region of South Asia until modern times.[5] It had the advantages of a mild, almost tropical climate, fertile soil, ample water, and an abundance of fish, wildlife, and fruit.[5] The standard of living compared favorably with other parts of South Asia.[5] As early as the thirteenth century, the region was developing as an agrarian economy.[5] It was not entirely without commercial centers, and Dhaka in particular grew into an important entrept during the Mughal Empire.[5] The British, however, on their arrival in the late eighteenth(18th) century, chose to develop Calcutta, now the capital city of West Bengal, as their commercial and administrative center in South Asia.[5] The development of East Bengal was thereafter limited to agriculture.[5] The administrative infrastructure of the late eighteenth and nineteenth centuries reinforced East Bengal's function as the primary agricultural producerchiefly of rice, tea, teak, cotton, cane and jutefor processors and traders from around Asia and beyond.[5] After its independence from Pakistan, Bangladesh followed a socialist economy by nationalizing all industries, proving to be a critical blunder undertaken by Awami League's Mujib Government following India's policy. Education policies of the British dating back from colonial era deprived education to millions of Bangla's Muslim peoples setting them back by decades. Some of the same factors that had made East Bengal a prosperous region became disadvantages during the nineteenth and twentieth centuries.[5] As life expectancy increased, the limitations of land and the annual floods increasingly became constraints on economic growth.[5] Preponderance on traditional agricultural methods became obstacles to the

modernization of agriculture.[5] Geography severely limited the development and maintenance of a modern transportation and communications system.[5] The partition of South Asia and the emergence of India and Pakistan in 1947 severely disrupted the economic system that had preserved East Bengal (now Bangladesh) as a producer of jute, rice and other agro commodities for the rest of India.[5] East Pakistan had to build a new industrial base and modernize agriculture in the midst of a population explosion.[5] The united government of Pakistan expanded the cultivated area and some irrigation facilities, but the rural population generally became poorer between 1947 and 1971 because improvements did not keep pace with rural population increase.[5] Pakistan's five-year plans opted for a development strategy based on industrialization, but the major share of the development budget went to West Pakistan, that is, contemporary Pakistan.[5] The lack of natural resources meant that East Pakistan was heavily dependent on imports, creating a balance of payments problem.[5] Without a substantial industrialization program or adequate agrarian expansion, the economy of East Pakistan steadily declined.[5] Blame was placed by various observers, but especially those in East Pakistan, on the West Pakistani leaders who not only dominated the government but also most of the fledgling industries in East Pakistan.[5] Since Bangladesh followed a socialist economy by nationalizing all industries after its independence, it underwent a slow growth of producing experienced entrepreneurs, managers, administrators, engineers, and technicians.[6] There were critical shortages of essential food grains and other staples because of wartime disruptions.[6] External markets for jute had been lost because of the instability of supply and the increasing popularity of synthetic substitutes.[6] Foreign exchange resources were minuscule, and the banking and monetary systems were unreliable.[6] Although Bangladesh had a large work force, the vast reserves of under trained and underpaid workers were largely illiterate, unskilled, and underemployed.[6] Commercially exploitable industrial resources, except for natural gas, were lacking.[6] Inflation, especially for essential consumer goods, ran between 300 and 400 percent.[6] The war of independence had crippled the transportation system.[6] Hundreds of road and railroad bridges had been destroyed or damaged, and rolling stock was inadequate and in poor repair.[6] The new country was still recovering from a severe cyclone that hit the area in 1970 and cause 250,000 deaths.[6] India, by a heavily poor nation and without any ability of giving aid to other nations, let alone to its suffering masses, came forward immediately with critically measured economic assistance in the first months after Bangladesh achieved independence from Pakistan.[6] Between December 1971 and January 1972, India committed US$232 million in aid to Bangladesh from the politco-economic aid India received from the USA and USSR. Official amount of disbursement yet undisclosed.[6] After 1975, Bangladeshi leaders began to turn their attention to developing new industrial capacity and rehabilitating its economy.[4] The static economic model adopted by these early leaders, howeverincluding the nationalization of much of the industrial sectorresulted in inefficiency and economic stagnation.[4] Beginning in late 1975, the government gradually gave greater scope to private sector participation in the economy, a pattern that has continued.[4] Many state-owned enterprises have been privatized, like banking, telecommunication, aviation, media, and jute.[4] Inefficiency in the public sector has been rising however at a gradual pace; external resistance to developing the country's richest natural resources is mounting; and power sectors including infrastructure have all contributed to slowing economic growth.[4] In the mid-1980s, there were encouraging signs of progress.[4] Economic policies aimed at encouraging private enterprise and investment, privatizing public industries, reinstating budgetary discipline, and liberalizing the import regime were accelerated.[4] From 1991 to 1993, the government successfully followed an enhanced structural adjustment facility (ESAF) with the International Monetary Fund (IMF) but failed to follow through on reforms in large part because of preoccupation with the government's domestic political troubles.[4] In the late 1990s the government's economic policies became more entrenched, and some of the early gains were lost, which was highlighted by a precipitous drop in foreign direct investment in 2000 and 2001.[4] In June 2003 the IMF approved 3-year, $490-million plan as part of the Poverty Reduction and Growth Facility (PRGF) for Bangladesh that aimed to support the government's economic reform program up to 2006.[4] Seventy million dollars was made available immediately.[4] In the same vein the World Bank approved $536 million in interest-free loans.[4]In the year 2010 Government of India extended a line of credit worth $ 1 billion to counter-balance China's close relationship with Bangladesh. Bangladesh historically has run a large trade deficit, financed largely through aid receipts and remittances from workers overseas.[4] Foreign reserves dropped markedly in 2001 but stabilized in the USD3 to USD4 billion range (or about 3 months' import cover).[4] In January 2007, reserves stood at $3.74 billion, and then increased to $5.8 billion by January 2008, in November 2009 it surpassed $10.0 billion, and as of April 2011 it surpassed the US $12 billion according to the Bank of Bangladesh, the central bank.[4] In addition imports and aid-dependence of the country has systematically been reduced since the beginning of 1990s. [edit] Macro-economic trend This is a chart of trend of gross domestic product of Bangladesh at market prices estimated by the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this reflects only the formal sector of the economy.

Year Gross Domestic Product US Dollar Exchange Inflation Index (2000=100) Per Capita Income (as % of USA) 1980 250,300 16.10 Taka 20 1.79 1985 597,318 31.00 Taka 36 1.19 1990 1,054,234 35.79 Taka 58 1.16 1995 1,594,210 40.27 Taka 78 1.12 2000 2,453,160 52.14 Taka 100 0.97 2005 3,913,334 63.92 Taka 126 0.95 2008 5,003,438 68.65 Taka 147 Mean wages were $0.58 per manhour in 2009. [edit] Economic outlook Efforts to achieve Bangladesh's macroeconomic goals have been problematic mostly due to various factors including the country's large population, corruption within the government, power shortages etc.[4] The privatization of public sector industries has proceeded at a slow pacedue in part to worker unrest in affected industriesalthough on June 30, 2010, the government took a bold step as it closed down the Adamjee Jute Mill, the country's largest and most costly state-owned enterprise.[4] The government also has proven unable to resist demands for wage hikes in government-owned industries. Access to capital is impeded.[4] State-owned banks, which control about three-fourths of deposits and loans, carry classified loan burdens of about 50%.[4] The IMF and World Bank predict GDP growth over the next 5 years will be about 6.5%, well short of the 9-10% needed to lift Bangladesh to Mid Income Nation level, within that time period.[4] The initial impact of the end of quotas under the Multi-Fiber Arrangement has been positive for Bangladesh, with continuing investment in the ready-made garment sector, which has experienced annual export growth in excess of around 20%.[4] Downward price pressure means Bangladesh must continue to cut final delivered costs if it is to remain competitive in the world market.[4] Foreign investors in a broad range of sectors are increasingly frustrated with the politics of confrontation, the level of corruption, the slow pace of reform and privatization and deregulation of the public sector and the lack of basic infrastructure e.g. roads.[4] While investors view favorably recent steps by the interim government to address corruption, governance, and infrastructure issues, most believe it is too early to assess the long-term impact of these developments.[4] [edit] Economic sectors [edit] Agriculture

Map showing the growing areas of major agricultural products. Main article: Agriculture of Bangladesh Most Bangladeshis earn their living from agriculture.[4] Although rice and jute are the primary crops, maize and vegetables are assuming greater importance.[4] Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry feed.[4] Tea is grown in the northeast.[4] Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas.[4] Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food grain production despite the often unfavorable weather conditions.[4] These include better flood control and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural credit networks.[4] With 28.8 million metric tons produced in 2005-2006 (JulyJune), rice is Bangladesh's principal crop.[4] By comparison, wheat output in 2005-2006 was 9 million metric tons.[4] Population pressure continues to place a severe burden on productive capacity, creating a food deficit, especially of wheat.[4] Foreign assistance and commercial imports fill the gap,[4] but seasonal hunger ("monga") remains a problem.[7] Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural sector will be its ability to absorb additional manpower.[4] Finding alternative sources of employment will continue to be a daunting problem for future governments, particularly with the increasing numbers of landless peasants who already account for about half the rural labor force.[4] Due to farmers' vulnerability to various risks, Bangladesh's poorest face numerous potential limitations on their ability to enhance agriculture production and their livelihoods. These include an actual and perceived risk to investing in new agricultural technologies and activities (despite their potential to increase income), a vulnerability to shocks and stresses and a limited ability to mitigate or cope with these and limited access to market information.[7] [edit] Manufacturing & Industry Many new jobs - mostly for women - have been created by the country's dynamic private ready-made garment industry, which grew at double-digit rates through most of the 1990s.[4] By the late 1990s, about 1.5 million people, mostly women,

were employed in the garments sector as well as Leather products specially Footwear (Shoe manufacturing unit). During 2001-2002, export earnings from ready-made garments reached $3,125 million, representing 52% of Bangladesh's total exports. Bangladesh has overtaken India in apparel exports in 2009, its exports stood at 2.66 billion US dollar, ahead of India's 2.27 billion US dollar.[8] Eastern Bengal was known for its fine muslin and silk fabric before the British period. The dyes, yarn, and cloth were the envy of much of the premodern world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia and Europe. The introduction of machine-made textiles from England in the late eighteenth century spelled doom for the costly and time-consuming hand loom process. Cotton growing died out in East Bengal, and the textile industry became dependent on imported yarn. Those who had earned their living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived. Other industries which have shown very strong growth include the chemical industry, steel industry, mining industry and the paper and pulp industry. [edit] Textile sector Bangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one export earner, accounting for 80% of Bangladesh's exports of $15.56 billion in 2009.[9] Bangladesh is 3rd in world textile exports behind Turkey, another low volume exporter, and China which exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Wages in Bangladesh's textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating.[10][11] After massive labor unrest in 2006[12] the government formed a Minimum Wage Board including business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000 workers in June, 2010,[9][13] a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile manufacturers who are asking for a wage below $30.[11][14] On July 28, 2010 it was announced that the minimum entry level wage would be increased to 3,000 taka, about $43.[15] The government also seems to believe some change is necessary. On September 21, 2006 then ex-Prime Minister Khaleda Zia called on textile firms to ensure the safety of workers by complying with international labor law at a speech inaugurating the Bangladesh Apparel & Textile Exposition (BATEXPO). [edit] Investment The stock market capitalization of the Dhaka Stock Exchange in Bangladesh crossed $10 billion in November 2007 and the $30 billion dollar mark in 2009, and USD 50 billion in August 2010. Bangladesh had one of the best performing stock markets in the world during the recent global recession, due to relatively low correlations with developed country stock markets. Major investment in real estate by domestic and foreign-resident Bangladeshis has led to a massive building boom in Dhaka and Chittagong. Recent (2011) trends for investing in Bangladesh as Saudi Arabia trying to secure public and private investment in oil and gas, power and transportation projects, United Arab Emirates (UAE) is keen to invest in growing shipbuilding industry in Bangladesh encouraged by comparative cost advantage, Tata, an India-based leading industrial multinational to invest Taka 1500 crore to set up an automobile industry in Bangladesh, World Bank to invest in rural roads improving quality of live, the Rwandan entrepreneurs are keen to invest in Bangladesh's pharmaceuticals sector considering its potentiality in international market, Samsung sought to lease 500 industrial plots from the export zones authority to set up an electronics hub in Bangladesh with an investment of US$1.25 billion, National Board of Revenue (NBR) is set to withdraw tax rebate facilities on investment in the capital market by individual taxpayers from the fiscal 2011-12. [edit] 2010-11 market crash Main article: 2011 Bangladesh share market scam The bullish capital market turned bearish during 2010, with the exchange losing 1,800 points between December 2010 and January 2011.[16] Millions of investors have been rendered bankrupt as a result of the market crash. The crash is believed to be caused artificially to benefit a handful of players at the expense of the big players.[16] [edit] External trade

Bangladeshi exports in 2006 The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has predicted textile exports will rise from US$7.90 billion earned in 2005-06 to US$15 billion by 2011. In part this optimism stems from how well the sector has fared

since the end of textile and clothing quotas, under the Multifibre Agreement, in early 2005. According to a United Nations Development Programme report "Sewing Thoughts: How to Realize Human Development Gains in the Post-Quota World" Bangladesh has been able to offset a decline in European sales by cultivating new markets in the United States.[17] "[In 2005] we had tremendous growth. The quota-free textile regime has proved to be a big boost for our factories," said BGMEA president S.M. Fazlul Hoque told reporters, after the sector's 24 per cent growth rate was revealed.[18] Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Md Fazlul Hoque has also struck an optimistic tone. In an interview with United News Bangladesh he lauded the blistering growth rate, saying "The quality of our products and its competitiveness in terms of prices helped the sector achieve such... tremendous success." Knitwear posted the strongest growth of all textile products in 2005-06, surging 35.38 per cent to US$2.82 billion. On the downside however, the sector's strong growth came amid sharp falls in prices for textile products on the world market, with growth subsequently dependent upon large increases in volume. Bangladesh's quest to boost the quantity of textile trade was also helped by US and EU caps on Chinese textiles. The US cap restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and 16 per cent in 2008. The EU deal similarly manages import growth until 2008. Bangladesh may continue to benefit from these restrictions over the next two years, however a climate of falling global textile prices forces wage rates the centre of the nation's efforts to increase market share. Prior to the Wage Board's announcement of its recommended minimum wage of $24, Tk1,604, in 2006, the rate had remained unchanged at Tk950, about $15, for more than 12 years. Although the government may allow up to three years for the new wage to be implemented, and inevitably there will be compliance issues as manufacturers drag their feet, it seemed politically untenable for wages to remain at those levels given the unprecedented industrial unrest. In response to the Wage Board's initial draft recommendation of a minimum wage of Tk1,604 to be increased to Tk1,800 after eight months, the BGMEA declared over 50 per cent of factories would be ruined within three months. While this claim is no doubt an exaggeration, the capacity of Bangladesh's textile industry to absorb a significant wage hike as margins become tighter is a key question which hangs over the future of the industry. Bangladesh's textile sector is concentrated in export processing zones in Dhaka and Chittagong. These zones, which are administered by the Bangladesh Export Processing Zone Authority, aim to offer "a congenial investment climate, free from cumbersome procedures"m according to Bangladesh Export Promotion Bureau's website.[19] They offer a range of incentives to potential investors including 10 year tax holidays, duty free import of capital goods, raw materials and building materials, exemptions on income tax on salaries paid to foreign nationals for three years and dividend tax exemptions for the period of the tax holiday. All goods produced in the zones are able to be exported duty free, in addition to which Bangladesh benefits from the Generalised System of Preferences in US, European and Japanese markets and is also endowed with Most Favoured Nation status from the United States. Furthermore, Bangladesh imposes no ceiling on investment in the EPZs and allows full repatriation of profits. The formation of labour unions within the EPZs is prohibited as are strikes.[19] Bangladesh's exports to the U.S. surpassed $1.9 billion in 1999. Bangladesh also exports significant amounts of garments and knitwear to the EU market. Bangladesh also has significant jute, leather, shrimp, pharmaceutical, and ceramics industries. Bangladesh has been a world leader in its efforts to end the use of child labor in garment factories. On July 4, 1995, the Bangladesh Garment Manufacturers Export Association, International Labour Organization, and UNICEF signed a memorandum of understanding on the elimination of child labor in the garment sector. Implementation of this pioneering agreement began in fall 1995, and by the end of 1999, child labor in the garment trade virtually had been eliminated. The labor-intensive process of ship breaking for scrap has developed to the point where it now meets most of Bangladesh's domestic steel needs. Other industries include sugar, tea, leather goods, newsprint, pharmaceutical, and fertilizer production. The Bangladesh government continues to court foreign investment, something it has done fairly successfully in private power generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and pharmaceuticals. In 1989, the same year it signed a bilateral investment treaty with the United States, it established a Board of Investment to simplify approval and start-up procedures for foreign investors, although in practice the board has done little to increase investment. The government created the Bangladesh Export Processing Zone Authority to manage the various export processing zones. The agency currently manages EPZs in Adamjee, Chittagong, Comilla, Dhaka, Ishwardi, Karnaphuli, Mongla, and Uttara. An EPZ has also been proposed for Sylhet.[20] The government has given the private sector permission to build and operate competing EPZs-initial construction on a Korean EPZ started in 1999. In June 1999, the AFL-CIO petitioned the U.S. Government to deny Bangladesh access to U.S. markets under the Generalized System of

Preferences (GSP), citing the country's failure to meet promises made in 1992 to allow freedom of association in EPZs. Sylhet is fast becoming a major center of retailing in Bangladesh,[citation needed] with many shopping centres being built by expatriates to serve fellow expatriates visiting Sylhet and the emerging middle class. Many of these developments hark back to Britain.[21] [edit] Overview The area of Gulshan is a commercial hub of the country Karwan Bazar is home to many of Bangladesh's important offices Bazaars in Bangladesh are popular trading places for everyday household necessities. Bangladesh has made significant strides in its economic sector performance since independence in 1971. Although the economy has improved vastly in the 1990s, Bangladesh still suffers in the area of foreign trade in South Asian region. Despite major impediments to growth like the inefficiency of state-owned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, inadequate power supplies, and slow implementation of economic reforms, Bangladesh has made some headway improving the climate for foreign investors and liberalizing the capital markets; for example, it has negotiated with foreign firms for oil and gas exploration, better countrywide distribution of cooking gas, and the construction of natural gas pipelines and power stations. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups. The especially severe floods of 1998 increased the flow of international aid. So far the global financial crisis has not had a major impact on the economy. The World Bank predicted economic growth of 6.5% for current year. Foreign aid has seen a decline of 10% over the last few months but economists see this as a good sign for self-reliance.There has been 18% growth in exports over the last 9 months and remittance inflow has increased at a remarkable 25% rate. Fiscal Year Total Export Total Import Foreign Remittance Earnings 20072008 $14.11b $25.205b $8.9b 20082009 $15.56b $22.00b+ $9.68b 2009-2010 $16.7b ~$24b $10.87b 2010-2011 $22.93b $32b $11.65b