Bangladesh is investing heavily in the primary textile sector. The primary textile sector of Bangladesh has turned into a strong backward linkage industry for the readymade garment sector. Currently, local manufactures are capable of supplying 85 per cent of yarn and fabric, along with 40 per cent of the woven fabric required by the knitwear sector. This means the primary textile sector has been unable to fulfill 60 per cent of the demand for woven fabrics.

Additionally, banks are enthusiastic in financing the primary textile sector, which has resulted in more investment. These new investments are expected to strengthen Bangladesh’s position in the global value chain and help reduce import dependency and raise Bangladesh’s competitiveness in the global market. Bangladesh can also attain a better position in the global readymade garment value chain.

However, investments have not been coming into the sector as expected due to a lack of infrastructural support and unavailability of utility services. A good number of investors have not been able to invest in the sector due to a lack of infrastructure and limited supply of gas and electricity.

There are 430 yarn manufacturing mills, 802 fabric manufacturing mills, and 244 dyeing-printing finishing mills in Bangladesh along with 32 denim fabric manufacturing mills and 22 home textile manufacturing mills.