"Industries grow better in a challenging environment. The competitiveness of an industrial unit erodes whenever it is given subsidy," Saifur said at the inaugural ceremony of the Knitwear Complex at Chashara in Narayanganj.

He said industries perform better without subsidy and entrepreneurs should proceed with the spirit of competition to sustain in the global market.

Referring to the quota facility for woven garments prior to 2005, the finance minister said the woven garment sector would have performed better had there been no quota for them.

"The knitwear sector has witnessed spectacular growth in the last couple of years as the entrepreneurs strived to attain global competitiveness fearing a setback in the quota-free regime," Saifur said.

He expected the sector will fetch US$ 4.0 billion in exports in the current fiscal as against $ 2.81 billion the previous year.

The minister said ensuring workers' welfare is important for attracting buyers. "You should take care of the welfare of the workers to make them the partners of your growth," he told the entrepreneurs.

He said his ministry will sanction funds for constructing alternative link roads and bridges for easier communication of the workers working at the BSCIC Industrial Park, where over 100 knitwear factories are operating.

"We are facing competition with Indian exporters and a 15 percent cash subsidy is required to remain in the race," Md Fazlul Hoque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, referring to the fact that the Indian government has announced 25 percent cash subsidy for its knitwear exporters.