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The Readymade Garments (RMG) industry has been the cornerstone of Bangladesh’s economy over the decades, boosting aggregated export growth and facilitating the nation’s transition from an agrarian economy to an industrialized one. The sector’s remarkable expansion has been instrumental in fostering economic development, creating employment opportunities while employing around 4 million workers, 60% of whom are women, and significantly contributing to poverty reduction.
Figure 1: Trend of RMG Export Share in USD Million as a Share of Total Export of Bangladesh
It comes as no surprise that the sector has achieved remarkable success in the global export market as well, propelling Bangladesh to a leading position in the global apparel industry. However, despite its commendable progress, the RMG sector now faces significant challenges in the global fashion industry, particularly in the realms of sustainability and technological advancement. These challenges have become increasingly apparent when compared to peer economies such as Vietnam, India and China, which have made substantial strides in integrating technological advancements.
Figure 2: Bangladesh’s Technology Adoption in the Manufacturing Industry Compared to its Peer Nations
Bangladesh is lagging in adopting modern technology in its manufacturing sector, hindering the progress of the industry.
In order to keep pace with its neighboring countries, Bangladesh needs to embrace circular economy principles through the adoption of energy-efficient technology for transitioning towards a sustainable fashion industry.
Transition towards low-carbon manufacturing practices and integration of energy-efficient technology
The RMG sector can adopt innovative processes to reduce its reliance on virgin raw materials and minimize the burning of fossil fuels. Utilization of energy-efficient machinery is imperative in curbing on-site fossil fuel combustion, currently responsible for 83% of emissions in the textile and apparel sector.[1] Additionally, the remaining greenhouse gas (GHG) emissions, stemming from grid electricity consumption, can be mitigated through a dual approach, which is decarbonizing the grid and transitioning to onsite renewable energy sources.
Facilitation of integration of the circular inputs
The shift toward sustainability in Bangladesh’s RMG sector should not be limited to adopting renewable energy sources; it must also incorporate recyclability to reduce textile waste. One key strategy is the recycling of pre-consumer textile waste, commonly known as ‘jhutes’, generated during garment production in the value chain. However, to maximize the longevity of clothing and ensure efficient reuse, a structured sorting process is essential before recycling.
Manual sorting: The initial stage involves manual sorting, where workers categorize jhutes based on color. This step helps streamline the recycling process by minimizing the need for additional dyeing and chemical treatments.
Automated sorting: The second stage requires advanced automated sorting technology, which Bangladesh has yet to fully implement. This technology can analyze the fiber composition of jhutes, distinguishing between pure cotton and blended synthetic materials.
Figure 3: Manual and Automated Sorting by Fiber and Color Differentiation for Recycling Purposes
By implementing automated sorting systems, manufacturers can improve the recyclability of materials, extend the lifecycle of garments, and support sustainable practices like fiber-to-fiber recycling. This approach, not only minimizes waste but also fosters a circular economy within the fashion industry, aligning with global sustainability goals.
| Case Study on Sweden’s Automated Sorting Facility[2] In 2021, the world’s first fully automated sorting facility for textile waste commenced operations in Malmö, Sweden. This groundbreaking facility is designed to handle both pre- and post-consumer textile waste, receiving materials in bales weighing approximately half a ton each. Its processing capabilities encompass a wide range of textiles, including yarn, fabric scraps, rejected garments, and used apparel. The facility’s operations are managed by a central control and dosing system, ensuring seamless functionality. Conveyor belts transport the textiles through the facility, where they are analyzed using advanced optical sorting technology. This system is supported by a compressed air and de-dusting mechanism to maintain efficiency and precision. At the end of each processing line, a baling machine compiles the sorted textiles, categorized by fiber type and color, into neatly packaged bales. |
While Bangladesh has yet to implement advanced automated sorting facilities within its textile and apparel value chain, the country has made notable progress in embracing the Fourth Industrial Revolution (4IR) in the early stages of the value chain. The integration of cutting-edge technologies has enabled the RMG sector to take significant steps toward sustainability, particularly by reducing its carbon footprint.
Figure 4: Integration of Automation in the Textile & Apparel Value Chain
Leading RMG industries have already adopted innovative solutions to enhance energy efficiency within their factory operations, demonstrating a proactive approach toward environmentally responsible manufacturing.
Figure 5: Energy Efficiency Achieved within the Textile and Apparel Value Chain
The use of environmentally friendly machinery across different production stages, including cutting, sewing, dyeing, and finishing, not only helps to curb carbon emissions and increase the use of recycled materials but also contributes to maintaining a moderate factory temperature. This, in turn, mitigates the risks associated with excessive heat exposure, fostering a safer and healthier working environment for garment workers.
While Bangladesh’s RMG sector undergoes this technological transformation, it is imperative to ensure the wellbeing of garment workers, the heart of the RMG industry. According to the report ‘Technological Transformation of Bangladesh’s Ready-Made Garment Sector and Its Impact on Workers’, automation led to an estimated 30% job displacement at the factory level in 2023.
To mitigate the impact of automation and foster long-term employment opportunities, the transition must be accompanied by the creation of new roles within the evolving economy. Investing in workforce development, reskilling, and upskilling initiatives will be crucial in enabling workers to adapt to emerging technologies while maintaining job security in a rapidly changing industry landscape.
Side by side, reskilling programs can be designed to facilitate transitions into other industries for workers seeking alternative career paths or those whose roles at the threat of being replaced by automation. This could include entrepreneurship training or skill development initiatives focused on sectors such as jute, healthcare, and hospitality.[5]
Figure 6: Mapping Employment Opportunities in the Jute Sector of Bangladesh[6]
![Figure 6: Mapping Employment Opportunities in the Jute Sector of Bangladesh[6]](https://lightcastlepartners.com/wp-content/uploads/2025/03/image-2.png)
By diversifying career opportunities beyond the RMG sector for blue-collar workers, Bangladesh can ensure a more inclusive and resilient workforce, mitigating the potential disruptions posed by technological advancements.
Encouraging RMG industry leaders to adopt sustainable practices is only one part of the transition towards a climate-resilient fashion industry. Equally important is raising awareness among all relevant stakeholders about the environmental impact of nonrecyclable clothing production and the sector’s growing carbon footprint.
Workers, particularly women, who constitute a significant portion of the RMG workforce, can be informed about the pressing environmental challenges linked to outdated technology and the excessive reliance on non-renewable resources. Empowering them with this knowledge will not only foster a deeper understanding of climate-friendly technologies but also instill a sense of ownership in the transition process. As active participants in sustainable manufacturing, workers can become advocates for responsible production practices.
Ultimately, as Bangladesh integrates energy-efficient machinery and invests in skill development initiatives, it has the potential to set a new benchmark for ethical and sustainable manufacturing. This shift will not only reinforce the country’s competitiveness in the global market but also demonstrate that responsible business practices are both achievable and essential for a sustainable future.
Sadia Karim, a Business Analyst, at LightCastle Partners has prepared the write-up. For further clarification, please contact at: [email protected]
[1] Biswas, M. K., Azad, A. K., Datta, A., Dutta, S., Roy, S., & Chopra, S. S. (2024). Navigating Sustainability through Greenhouse Gas Emission Inventory: ESG Practices and Energy Shift in Bangladesh’s Textile and Readymade Garment Industries. Environmental pollution (Barking, Essex: 1987)
[2] Closing the loop: Increasing fashion circularity in California. (2021). Mckinsey and Company.
[3] DBL sustainability Report, 2023
[4] Energy Efficiency & Productivity Case Study: Installation of Energy Efficient Servo Motor-based Sewing Machines Hamza Clothing Ltd. | PaCT
[5] FSG. (2023). Just climate transitions in Bangladesh: Accelerating multistakeholder action in textile and apparel and construction industries.
[6] Ministry of Textile and Jute
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