Textile & Clothing Economic aspects:

Economic aspects:

The Textile & Clothing industries are very important for a handful of countries, in terms of trade, GDP and the employment and have contributed  significantly in several other countries. The Textile & Clothing industries provide opportunities for export diversification and expansion of manufactured exports for low-income countries that can exploit their labour costadvantages and fill emerging niches and meet buyer demands. There are also dynamiceffects of T&C industries and these dynamic effects are greater, the more linkages have been built up between the garment industry and local textile suppliers. At the macro level there are a number of ways in which the T&C industries affect

economic development.  

• Textile & Clothing industries are a major contributor to incomes for selected countries. The contribution of T&C production to GDP differs by country but is up to 5% in Sri Lanka, 12% in Cambodia and 15% in Pakistan; 

• Textile & Clothing are the dominant source of exports and foreign exchange in several countries. Low income and developing countries such as Cambodia, Bangladesh, Pakistan and Sri Lanka depend on T&C exports for more than 50% of total manufacturing exports (e.g. 80% in Cambodia, 83.5% in Bangladesh); 

  • The employment gets effects are also significant. Employment in T&C production for least developed and low income countries as a share of total employment in manufacturing ranges from 35% in selected low income countries, 75% in Bangladesh and  90% in other selected LDCs (e.g. Lesotho, Cambodia).