Industry capacity grew quickly: BGMEA membership records show garment factories rising from 834 (1990–1991) to 1,163 (1991–1992) and 1,537 (1992–1993). This expansion increased production volume and made garments a mass employer, especially for women entering formal wage work. It also increased pressure on oversight of wages, buildings, and fire safety as factories multiplied.
Bangladesh’s readymade garments (RMG) industry entered the 1990s already growing fast, and by fiscal year (FY) 1992–1993 apparel exports reached about $1.45 billion. This scale signaled that garments were becoming a central driver of export earnings and industrial jobs. It set the baseline for the rapid expansion that followed through the 2000s and 2010s.
Bangladesh became a member of the World Trade Organization (WTO) on January 1, 1995. WTO membership anchored Bangladesh in the global trading system, including rules affecting textiles and clothing trade. This mattered for garments because market access conditions—and disputes over quotas—were increasingly handled through WTO agreements.
In 2001, the European Union’s “Everything But Arms” (EBA) arrangement began offering least-developed countries duty-free, quota-free access to the EU market for all products except arms. For Bangladesh, a least-developed country during this period, EBA improved access to one of the world’s largest apparel markets. Over time, stronger EU demand helped reinforce garments as Bangladesh’s leading export sector.
By FY 2004–2005, Bangladesh’s total RMG exports reached about $6.42 billion, showing how strongly the sector had scaled since the early 1990s. This growth happened while the global quota system for textiles and clothing was still being phased out. The next year would test how Bangladesh performed in a more open, quota-free market.
On January 1, 2005, the WTO Agreement on Textiles and Clothing ended, and remaining quota restrictions were terminated. This shifted global apparel competition by removing many quota limits that had shaped sourcing decisions for decades. Bangladesh’s ability to keep growing after 2005 became a key marker of its competitiveness in the global garments market.
By FY 2006–2007, Bangladesh’s total RMG exports reached about $9.21 billion. Continued growth soon after the end of quotas suggested the sector could compete on price, speed, and scale even in a more liberalized global market. The industry’s expanding role also increased scrutiny of labor conditions and factory safety.
Bangladesh’s garment minimum wage was raised to Tk 3,000 per month at the entry level, effective November 1, 2010 (from Tk 1,662.50 previously). The increase followed major worker pressure and highlighted the tension between low-cost exports and basic living standards. Wage-setting became a recurring policy issue as exports rose and international attention grew.
On November 24, 2012, a major factory fire at Tazreen Fashions near Dhaka killed at least 117 people and injured many more. The disaster underscored longstanding safety problems such as inadequate fire exits and weak enforcement. It intensified global pressure on brands, factory owners, and the Bangladeshi government to improve working conditions.
On April 24, 2013, the Rana Plaza building collapsed in Savar, killing 1,134 people and injuring about 2,500. It became the deadliest disaster in the history of the garment industry and drew worldwide attention to unsafe buildings and weak oversight. The collapse reshaped how buyers, unions, and governments approached safety compliance in Bangladesh’s supply chains.
On May 15, 2013, global brands and trade unions signed the Accord on Fire and Building Safety in Bangladesh, a legally binding, multi-year program focused on factory inspections and remediation. The Accord created a structured mechanism to identify fire and building hazards and push fixes across supplier factories. It became a major part of the post–Rana Plaza safety architecture shaping the export sector.
On June 27, 2013, the United States announced a decision to suspend Bangladesh’s Generalized System of Preferences (GSP) tariff benefits, citing insufficient progress on worker rights and workplace safety. The move did not stop U.S. imports, but it increased diplomatic and commercial pressure for reforms. It also signaled that trade access could be linked to labor and safety performance.
On July 15, 2013, Bangladesh’s parliament passed the Labour (Amendment) Bill, 2013, changing parts of the 2006 labor law. The amendments aimed to strengthen worker welfare provisions, including safety measures and rules around trade unions. While debated, the reform marked a policy response tied directly to pressure after Rana Plaza and other tragedies.
On November 14, 2013, Bangladesh announced a new garment minimum wage of Tk 5,300 per month, to take effect on December 1, 2013. The decision came after intensified worker demands and heightened scrutiny following major industrial disasters. Higher wages raised production costs, but also became part of the broader effort to stabilize the sector’s workforce and reputation.
By FY 2014–2015, Bangladesh’s total RMG exports reached about $25.49 billion—roughly four times the FY 2004–2005 level. This capped a long period of export-led growth that made garments the backbone of Bangladesh’s integration into global consumer markets. At the same time, the sector’s future increasingly depended on whether safety upgrades, labor rules, and buyer practices could keep pace with its scale.
Bangladesh's Readymade Garments Export Boom (1991–2015)