The garments sector of Bangladesh is labour intensive and enjoys considerable competitive advantage built on abundant supply of cheap labour. The Ready Made Garment (‘RMG’) sector of Bangladesh is the biggest earner of foreign currency. In RMG sector, there are more than 5000 garment factories employing more than 12 Lac labourers out of which around 85 per cent labourers are women. The RMG sector in Bangladesh accounts for more than 75% of total exports of the country. Bangladesh is a preferred region in Asia for manufacture of textiles and garments because of low cost labour, preferential trade status and advantageous global market access. The Government of Bangladesh provides incentives for spinning and weaving industries which interalia include a 15% cash subsidy of fabric cost to exporters sourcing fabrics locally. In addition, incentives from the Government of Bangladesh in the form of duty free imports of raw materials and other policy measures attract domestic and foreign investors in this sector. This sector has grown strongly over the last two decades and, indeed, the export performance of Bangladesh is solely driven by the garments sector. Consequently, the development of garment industry has contributed substantially to the economic and social development of the country.