Big garment businesses may shift to India in case situation in Bangladesh fails to improve

The financial condition in neighboring Bangladesh sees no signs of improvement due to escalating attacks on Hindu minorities.

This has hit the garment industry in this country which is the second largest in the world after China.

The garment industry in Bangladesh is the cornerstone of its economy. But this has been severely hit following the ouster of Sheikh Hasina government.

The new government is very unstable and sources say this country is heading towards a bankruptcy crisis similar to that of Pakistan.

 Several big global brands manufacture or source clothing from the country. This clothing was 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. Sah sa 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.

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 choice