Competitive wage rate together with easily trainable workforce, entrepreneurial skill, expanding supply side capacity, and government policy support helped to translate the comparative advantages into competitive advantages.

The core strength of the knitwear sector is its backward linkage. The entrepreneurs of the sector not only increased their stitching capacity overtime but also invested in the allied industry to augment the overall capacity of the total sector with the same pace. Over the period of time knitwear sector gradually became almost self sufficient in fabric and yarn. This improvement has become possible because of the integrated growth of spinning factories in line of the growth of country's stitching capacity and increased need of the yarn and fabric.

As the export increased in the knitwear sector, the capacity of backward linkage also gradually increased accordingly. The result is local suppliers can provide 90% of the total fabric requirement of the sector. The growth of spinning mills also stepped with the growth of knitwear exports. In 1993-94 total number of spindles was 1.38 million that supplied 10.70 million KG yarn. In 2003-04 the number almost tripled and it became 3.77 million that supplies 239.00 million KG yarn. As of now the total investment in the backward linkage industry is more than US$ 2.00 billion.

Though woven is the highest contributor (41.58%) in terms of gross export, but knit becomes the most significant component if we consider net export with a share of 32%. This has resulted because of the backward linkage industry that has grown over time which helped the knitwear sector to have the higher value addition and there fore a much higher net retention rate.