Impact of Cash Subsidy on the RMG Sector of Bangladesh

Abstract

This internship report titled “Impact of Cash Subsidy on the RMG Sector of Bangladesh” is completed based on the experience gained through working as an intern for 3 months in Howlader Yunus & Co. Chartered Accountants. This report being part of the internship program demonstrates that it is an amalgamation of the knowledge of undergraduate program and brimful of experience achieved through practically working in a workplace. This report aims to reflect the impact of the cash subsidy provided by the government of Bangladesh to the exporters of RMG sector. The report is segmented into five various chapters where I have tried to reveal and discuss how cash incentives impact the readymade garments industry in various ways. In order to explain the impact of cash subsidy, I have used positivism and interpretivism approaches. I have interpreted the statistical data through qualitative data analysis method. Though most of the data is collected through primary sources, I read online articles, newspapers, circulars provided by Bangladesh Bank to gain proper knowledge of the exact scenario of reasons behind the impact of cash incentives on sector RMG export. Through the analysis, I have tried to show the essential role of cash stipend in the development of Bangladesh and also the difficulties faced by the exporters while following the procedures to receive cash subsidy. The production of the yarn should be increased while reducing the price and procedures of gaining subsidy should be ease while increasing the percentage of cash subsidy. The corruption has to be eliminated in order to increase export of RMG goods.