Bangladesh will go bankrupt like Pakistan! Many huge businesses may migrate to India, and this city might…

News Mania Desk / Piyal Chatterjee / 14th December 2024

Bangladesh is currently on the verge of a bankruptcy catastrophe comparable to Pakistan, as the country remains unstable following former Prime Minister Sheikh Hasina’s resignation and exile. Among all industries, the garment industry, a pillar of Bangladesh’s economy, has been struck the hardest. Rising attacks on minorities, particularly the Hindu population, have heightened fears within the industry, with numerous companies on the point of closure.

It is worth noting that Bangladesh’s garment industry is the world’s second largest, after China. Several major global brands produce or source apparel from the nation. These clothes were then sold in large showrooms throughout the country. However, the country’s continued turmoil has an impact on these brands’ businesses.

To save losses, many businesses are moving their focus to Indian manufacturers to satisfy their needs.
The garment sector contributes significantly to Bangladesh’s GDP, accounting for 11% as of 2024. Exports account for around 80 percent of the sector’s revenue.

The garment sector contributes significantly to Bangladesh’s GDP, accounting approximately 11% (2024). Exports account for around 80 percent of total revenue. If the clothing sector continues to shrink, the country may face significant job losses, leading it to incur large debts. Such a circumstance could push Bangladesh closer to Pakistan’s economic collapse.

With global firms looking for new manufacturing or sourcing locations, Surat, India, could emerge as an alternative. Interestingly, the Economic Times claimed that brands’ interest in Surat’s garment industry is growing. According to industry experts, big companies are looking into ready-to-wear clothes production and supply. If these inquiries result into orders, Surat’s garment sector growth rate might increase from 12 percent per year to 20-25 percent.

Former president of the South Gujarat Chamber of Commerce, Ashish Gujarati, stated that fresh orders are expected to help not only Surat, but also other Indian towns with textile hubs. Cities like Tirupur and Coimbatore in Tamil Nadu, Ludhiana in Punjab, and Noida in Uttar Pradesh are popular choices.