Category: GARMENTS
Country: Bangladesh
Region: South Asia
It is worth noting that, the garment industry in Bangladesh is the second largest in the world after China.
By Joy Pillai
10th December, 2024 8:20 AM IST
Bangladesh is currently heading toward a bankruptcy crisis similar to Pakistan, as the situation in the country remains unstable following the resignation and exile of former Prime Minister Sheikh Hasina. Among all sectors, the garment industry, a cornerstone of Bangladesh’s economy, has been hit the hardest. Rising attacks on minorities, especially on the Hindu community, have further escalated concerns within the industry, with several companies on the verge of shutting down.
Impact On Garment Industry
It is worth noting that, the garment industry in Bangladesh is the second largest in the world after China. Several big global brands manufacture or source clothing from the country. These clothing then sold in big showrooms across the country. However, the ongoing turmoil in the country is affecting the business of these brands. To mitigate losses, many are now shifting their focus to Indian manufacturers to meet their demands.
A Major Contributor to Bangladesh’s GDP
The garment industry contributes significantly to Bangladesh’s GDP, accounting for 11 percent as of 2024. Around 80 percent of the sector’s revenue comes from exports.
The garment industry is a major contributor to Bangladesh’s GDP, accounting for 11 percent (2024). Around 80 percent of the revenue comes from the export. If the garment industry faces further decline it could lead to major job losses, forcing the country to take on heavy debts. Such situation could bring Bangladesh closer to Pakistan’s economic collapse/
With global brands looking for a new place to manufacture or source their products, India’s Surat city could emerge as an alternative. Interestingly, the Economic Times reported that brands’ interest in Surat’s garment industry has increased. According to industry insiders, global brands are inquiring about ready-to-wear clothing production and supply. If these inquiries turn into orders, Surat’s garment industry growth rate could rise from the current 12 percent per year to 20-25 percent.
Benefit For Other Indian Cities
Former president of the South Gujarat Chamber of Commerce Ashish Gujarati said that new orders are expected to benefit not just Surat but also other Indian cities with textile hubs. Cities such as Tirupur and Coimbatore in Tamil Nadu, Ludhiana in Punjab, and Noida in Uttar Pradesh are the preferred choices.
Courtesy: india.com
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