3.1. Sources of Data Data regarding the completion of this report are collected from both primary and secondary sources.
3.1.1. Primary Source Through direct conversation with the respective officers of the Textile companies.
3.1.2. Secondary Sources 1. Various data source like BKMEA, BGMEA, Bangladesh bank, Export Promotion Bureau, BTMC etc. 2. Internet browsing through website searching. 3. Annual report of the various organizations such as BKMEA, BGMEA, Bangladesh bank, Export Promotion Bureau, BTMC etc. 4. Different published material Such as books and articles.
3.2. Analysis of Data For analyzing the collected data different statistical tools are used. For showing the trend of export, contribution of export to GDP, time series analysis has been used. For determining the significance of RMG export and Total export simple regression analysis has been used. For measuring the significance of profit and commission simple regression analysis has been used.
4.1. Major Market of RMG Industry The RMG industry of Bangladesh fully depends on the export. The major importer of RMG products are USA and Europe. But there is other country that has a contribution to the total RMG export. The following table contains the list of major importer of our RMG products.
4.2. Contribution to Economy The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The Bangladesh RMG industry, with its woven and knit sub-components, is a pre-dominantly export oriented sector, with 95 per cent of the woven and 90 per cent of the knit exports being directed to foreign markets. The cumulative foreign currency earnings by the sector, since 1978, when first export was registered, is estimated at 70.56 billion US dollars.
4.3. RMG Industry Contribution to Different Sector Growth of RMG sector has spawned a whole new set of linkage industries and facilitated expansion of many service sector activities. The RMG industry not only propelled the growth of spinning, weaving, dyeing and finishing industries, production of accessories and spare parts, but also rendered large externalities by contributing to other economic activities in such areas as banking, insurance, real estate, packaging, hotels and tourism, recycling, consumer goods utility services and transportation. RMG sector has overwhelmingly high backward linkage with textile sector providing fabrics, yarn and other ancillaries. It has important backward linkage with utilities such as electricity, gas, and machinery and spare parts supplying [6]. Banking and Insurance Growth of the RMG sector and the related activities has contributed a lot to the robust growth of the financial sector in Bangladesh. A World Bank survey revealed that almost all firms (98%) are the clients of the commercial banks for working capital and procurement of machines and equipment (57%). All firms have their machines and plants insured and, additionally, 87% of importers of input and 15% of the RMG exporters get their imports/exports insured. Shipping and Logistics The RMG sector has contributed to the shipping business in Bangladesh and stimulated setting up of several container yards, expansion of port facilities to handle large container carrying trains, increase of cargo handling and storage facilities. RMG manufacturers also extensively use services of Clearing & Forwarding Agents for the purpose of customs clearance of inputs and finished goods. It is estimated that port usage fees earned from the RMG sector account for more than 40% of the income of the port authority. Contribution to Government Exchequer The RMG sector contributes to the government exchequer both directly and indirectly. In FY 2007 the sector paid 10.13 million dollars as stamp and postage, license renewal fee etc. The sector also paid USD 12.61 million to the government as direct taxes in FY 2014. Engineering Sector The RMG industry paid 28.55 million dollars to the engineering sector which included payments to repairing and maintenance service industry (USD 8.29 million), electrical engineering (USD 9.21 million), transport vehicle maintenance service ( USD 5.53 Million), and machine tools service (USD 5.52 Million).