Water security: Bangladesh apparel’s next competitive edge
Water is withdrawn mainly for industrial use and agricultural irrigation, with unplanned industrial consumption a major contributor to excessive groundwater extraction
People across Bangladesh, once regarded as living in a water-abundant country, are increasingly experiencing water scarcity. Several factors are driving this shift, including reduced dry-season flows in major upstream rivers, salinity intrusion, excessive extraction and widespread pollution.
Water is withdrawn mainly for industrial use and agricultural irrigation, with unplanned industrial consumption a major contributor to excessive groundwater extraction. As a result, access to safe and essential water is steadily slipping beyond people's reach, becoming a serious national concern.
One recent example emerged about four months ago in Ibrahimpur, in Dhaka's Kafrul area. As groundwater levels declined, residents faced acute shortages, forcing many landlords to install submersible pumps and pass on the cost to tenants.
Keep updated, follow The Business Standard's Google news channel
Some tenants were charged an additional Tk1,000 a month to cover water expenses. The burden fell heavily on low-income households.
Tahmina Akter, a tenant in the area, told The Business Standard, "My husband earns a modest salary. When it is already difficult to survive after paying rent, bearing an extra thousand taka is extremely hard. But we have no choice."
She added that even moving elsewhere offered little relief, as water costs were rising across neighbourhoods, forcing families to cut back on essentials.
Similar situations are unfolding in other parts of Dhaka and beyond.
Md Yakub Hossain, a resident of the industrial hub Savar, said pollution and water stress were part of everyday life. "I grew up in Savar, right in the middle of the industrial belt, so pollution is not a theory to me. Our rivers around Hemayetpur and the EPZ area have deteriorated badly."
He said groundwater was drying up, with shallow tube wells no longer functioning due to over-extraction.
To remain competitive globally, factories must reduce their water footprint and prove it with credible data.
"People were promised jobs and development," he said. "Instead, the community is suffering from polluted water, failing effluent treatment plants and disappearing drinking sources."
These are not isolated cases. Similar patterns are now common across densely populated and industrial zones. Multiple studies show that alongside rapid industrialisation, river pollution and unplanned water use have driven a continuous decline in groundwater levels.
Bangladesh's industrial expansion, particularly in textiles and ready-made garments, has been a key driver of economic growth, employment and foreign exchange earnings. The sector generates around $40 billion in annual exports, accounting for nearly 85% of total exports over the past four decades.
Europe remains the largest export destination, receiving about half of all shipments, followed by the United States as the single largest country market.
However, this growth has come at a severe cost to water resources, ecosystems and surrounding communities.
The garment and textile sector is extremely water-intensive. Dyeing, washing and finishing processes consume vast volumes of water, with one kilogram of cotton-based fabric requiring, on average, more than 100 litres.
A study by the 2030 Water Resources Group, titled "Groundwater Sustainability Assessment for the Greater Dhaka Watershed Area", shows groundwater levels in industrial zones such as Gazipur, Savar and Narayanganj are falling by two to three metres annually.
A 2015 Oxford University study, Industrial Water Efficiency Financing Leading to Water Security in Bangladesh, estimates the textile sector consumes around 1,500 million cubic metres of groundwater each year, using nearly 980 million kilowatt-hours of electricity and spending about $4 billion annually on extraction.
Bangladesh Agricultural Development Corporation data indicate that groundwater levels in Dhaka dropped by around 40 metres between 1996 and 2009. The average depth is now about 78 metres below ground and could reach 132 metres by 2030.
Declining groundwater increases vulnerability for factories and urban utilities that rely on deep extraction, raising costs and operational risks, researchers warn.
Gazipur, one of the country's largest apparel hubs, has seen its built-up area expand from 13% to 30% between 2004 and 2024, sharply reducing natural groundwater recharge.
Without intervention, industrial water demand could reach nearly 7,000 million litres per day by 2030, while pollution hotspots continue to expand along canals and river channels.
Water insecurity now directly affects the apparel value chain. Shallow aquifers that once supported local communities are drying up, while deep aquifers are becoming increasingly expensive to access.
Rivers such as the Turag, Buriganga, Shitalakshya, Dhaleshwari and Balu have been heavily polluted by untreated industrial discharge, stripping them of biodiversity and rendering them unsafe for human use.
Untreated wastewater often contains synthetic dyes, chemical residues, heavy metals and toxic compounds, degrading water quality and turning rivers into foul-smelling channels devoid of aquatic life.
Water as a driver of global competitiveness
In recent years, the European Union has adopted stricter laws and reporting requirements focused on reducing water use, preventing pollution and protecting community access to water.
These rules require suppliers to track, disclose and share water data, aligning factories with buyers' water stewardship programmes.
Experts warn that water insecurity will increasingly affect Bangladesh's competitiveness, as global brands assess compliance with environmental, social and governance standards.
To enhance supply-chain transparency, the EU plans to introduce the Digital Product Passport by 2030, enabling tracking of environmental practices, including water use.
Monower Hossain, group head of sustainability at Team Group, told The Business Standard, "To remain competitive globally, factories must reduce their water footprint and prove it with credible data."
He said strong water management would significantly boost buyer confidence.
Experts stress the need for a coordinated water stewardship roadmap involving brands, factory owners, the government and development partners.
Towards solutions
At a strategic dialogue held at The Business Standard office in Dhaka on 29 November, speakers proposed measures to curb industrial water use and wastage.
Azman Ahmed Chowdhury, director of business development and quality assurance at WaterAid, outlined priority actions for 2025-2030, including establishing a national water stewardship platform and strengthening data sharing.
He identified efficiency and reuse, alternative water sources and improved governance as the core pillars of sustainable water management.
"Water security is a competitiveness driver, not a compliance burden," he said, adding that efficiency gains deliver significant cost savings.
Bangladesh has made progress. According to BGMEA, more than 250 USGBC-certified green garment factories now operate in the country, many equipped with effluent treatment plants.
WaterAid reports that between 2017 and 2024 it supported water-saving initiatives in 15 factories, installing rainwater harvesting systems that collected over 216 million litres of water and reduced energy use and emissions.
Yet coverage remains limited. In Gazipur alone, only about 556 of more than 2,200 factories reportedly have ETPs, raising questions about enforcement.
Factory owners say high investment costs, space constraints and rented facilities make water efficiency difficult for SMEs.
Nafis-Ud-Doula, a BGMEA director, said more than half of the association's 2,400 member factories are SMEs. "How will small factories implement this? It requires investment worth several crores of taka," he said.
Government initiatives are also evolving. WARPO has drafted a policy proposing differentiated pricing for industrial water use and wastewater, though implementation is still pending.
Bangladesh is also developing a national managed aquifer recharge strategy and aligning with international water governance frameworks.
Experts agree that unless water efficiency is scaled across the sector, Bangladesh's apparel industry risks losing its competitive edge in a world increasingly defined by sustainability.
