Bangladesh Could Go Bankrupt Like Pakistan - Many Big Brands Are Moving To India
Following the resignation and exile of former prime minister Sheikh Hasina, the situation in bangladesh is still unsettled, and the country is presently on the verge of a bankruptcy catastrophe like that of Pakistan.
The garment industry, a vital component of Bangladesh's economy, has been the most severely affected of all the industries. Concerns within the sector have increased due to an increase in attacks on minorities, particularly the Hindu population, and numerous businesses are considering closing.
Impact On the Garment Industry
It is important to note that, behind China, bangladesh has the second-largest apparel sector globally. The nation produces or sources apparel for several well-known international brands. Then, these garments were offered for sale in large showrooms throughout the nation. However, these firms' operations are being impacted by the nation's continuous unrest. Many are increasingly focusing on indian manufacturers to satisfy their requests to reduce losses.
A Major Contributor to Bangladesh's GDP
As of 2024, the apparel sector accounted for 11% of Bangladesh's GDP, making it a substantial contributor. Exports account for almost 80% of the sector's income.
With 11% of Bangladesh's GDP coming from the clothing sector, it is a significant contribution (2024). The export accounts for almost 80 percent of the total earnings. Significant employment losses might result from future declines in the apparel business, which would force the nation to incur significant debt. bangladesh may become closer to Pakistan's economic collapse in such a scenario.
Gujarat's surat Could Reap Benefits
India's surat city may become a viable option for multinational corporations searching for a new location to source or manufacture their goods. It's interesting to note that Surat's apparel business has drawn more attention from companies, according to the Economic Times. industry sources claim that international brands are asking about the supply and manufacturing of ready-to-wear apparel. The growth rate of Surat's garment sector might increase from the present 12 percent annually to 20–25 percent if these inquiries result in orders.
Benefits for Other indian Cities
Ashish Gujarati, a former president of the South gujarat Chamber of Commerce, stated that the new orders are anticipated to help other indian towns that have textile centers in addition to Surat. The favored options include cities like noida in Uttar Pradesh, ludhiana in Punjab, and Tirupur and coimbatore in tamil Nadu.
The garment industry, a vital component of Bangladesh's economy, has been the most severely affected of all the industries. Concerns within the sector have increased due to an increase in attacks on minorities, particularly the Hindu population, and numerous businesses are considering closing.
Impact On the Garment Industry
It is important to note that, behind China, bangladesh has the second-largest apparel sector globally. The nation produces or sources apparel for several well-known international brands. Then, these garments were offered for sale in large showrooms throughout the nation. However, these firms' operations are being impacted by the nation's continuous unrest. Many are increasingly focusing on indian manufacturers to satisfy their requests to reduce losses.
A Major Contributor to Bangladesh's GDP
As of 2024, the apparel sector accounted for 11% of Bangladesh's GDP, making it a substantial contributor. Exports account for almost 80% of the sector's income.
With 11% of Bangladesh's GDP coming from the clothing sector, it is a significant contribution (2024). The export accounts for almost 80 percent of the total earnings. Significant employment losses might result from future declines in the apparel business, which would force the nation to incur significant debt. bangladesh may become closer to Pakistan's economic collapse in such a scenario.
Gujarat's surat Could Reap Benefits
India's surat city may become a viable option for multinational corporations searching for a new location to source or manufacture their goods. It's interesting to note that Surat's apparel business has drawn more attention from companies, according to the Economic Times. industry sources claim that international brands are asking about the supply and manufacturing of ready-to-wear apparel. The growth rate of Surat's garment sector might increase from the present 12 percent annually to 20–25 percent if these inquiries result in orders.
Benefits for Other indian Cities
Ashish Gujarati, a former president of the South gujarat Chamber of Commerce, stated that the new orders are anticipated to help other indian towns that have textile centers in addition to Surat. The favored options include cities like noida in Uttar Pradesh, ludhiana in Punjab, and Tirupur and coimbatore in tamil Nadu.