Dhaka, Aug. 28 -- The government has decided to extend special cash incentives to ready-made garment (RMG) exporters who subcontract production to smaller factories, finance ministry officials confirmed. Until now, only exporters operating their own factories were eligible for this benefit.
Under the new scheme, exporters who engage subcontractors will be able to pass on part of the 0.3percent cash incentive to these units, strengthening an industry that accounts for more than 80percent of Bangladesh's exports.
Officials said the decision aims to increase production capacity at a time when Bangladesh is gaining competitiveness in the US market due to lower tariffs compared to rivals such as China and India.
The move follows an applicatio...