Bangladesh Garment Industry Faces Crisis: Until some time ago, Bangladesh was a leader in the readymade garments sector. But after the overthrow of former Prime Minister Sheikh Hasina’s government, the situation in the neighboring country kept deteriorating. At present, fundamentalist forces are gaining dominance in Bangladesh, which has caused a severe setback to the business environment in the country. Bangladesh’s economy has started collapsing. Global players of readymade garments have started avoiding it. This political crisis has dealt a severe blow to the readymade garments industry.
The biggest feature of Bangladesh’s readymade garments industry was its low cost. That is why readymade garments of super brands like Walmart, Tommy Hilfiger, Puma and Gap were made in Bangladesh. After this, those clothes were sold in the markets of India, Europe and America. You can’t even imagine how much money the artisans who make these branded garments cost thousands of rupees in India. In reality, the artisans who make them do not even get Rs 10 per hour. In such a situation, the wages for making a shirt or T-shirt barely come to around 80 paise. That is, a shirt which costs just 80 paise to make was sold for at least Rs 3000 in the Indian market.
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Sheikh Hasina’s contribution
Due to this quality, Bangladesh achieved unprecedented success in the readymade garments sector. It had earned a reputation worldwide, but the current political crisis has ruined all these achievements in one go. Sheikh Hasina is forced to live in exile in India. It was due to the efforts of the former Prime Minister that Bangladesh’s economy started shining on the world stage. Especially the readymade garment industry had reached great heights.
Bangladesh has the cheapest labour in the world. This reduces the cost of brands a lot.
1.25 lakh T-shirts were made every day
This has been written about in Jeremy Seabrook’s book ‘The Song of Shirt’. This small country, which once faced problems due to floods and storms every year, had once become the world’s second largest readymade garments exporter after China. The T-shirts, sweaters, trousers, men’s and women’s shirts made here were supplied to every corner of the world. More than 5,500 factories here make 1.25 lakh T-shirts every day. These factories are located in Dhaka, Chittagong and surrounding areas. But now after the situation has changed there, the functioning of the factories has also been affected. The big brands of the world have started avoiding it.
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Big brands used to do outsourcing
Most of the big brands of the world used to outsource their garments from Bangladesh. Actually, Bangladesh has the cheapest labour in the world. This reduces the cost of brands a lot. There is a lot of finishing in their work. Still, the Bangladeshi artisans and workers who make these garments which are sold abroad for thousands of rupees do not get even one rupee for making a shirt. Half of the work of Europe’s largest readymade retailer Hans & Mauritz i.e. H&M was done in Bangladesh. The world’s largest retail brands Walmart, Britain’s Primark, Italy’s Ralph Lauren were continuously increasing the orders given to Bangladesh. But now this has been stopped.
A garment factory in India.
Offers coming to India
But it is said that one’s loss becomes another’s gain. The same is happening in the case of Bangladesh. The chaos prevailing there is becoming a big opportunity for India’s textile industry. The Indian garment industry is constantly receiving offers from abroad. According to a report, Gautam Hari Singhania, Chairman and MD of Raymond, a leading textile company, said that offers are constantly coming from the world’s big companies and they are ready to take advantage of this opportunity. Raymond has invested extensively to become the third largest suit making company in the world. On the question of garment business coming to India from Bangladesh, he said that we are hoping so. We are looking at the proposals being received. Singhania said that it will take some time, but we are getting positive signals on this.
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What did Gautam Singhania of Raymond say?
Gautam Singhania said, “India’s position is much better than Bangladesh. Companies like Raymond have a presence in both textile and readymade garment business. This will also save a lot of time for international brands.” Singhania said, “The supply of clothes in Bangladesh has been affected. India has a great opportunity to take advantage, because we have a base of clothes here. They only have a base for making garments. We are lucky that we have these capabilities.”
India has a chance to strengthen its position
The ongoing political turmoil and violence in Bangladesh has given India an opportunity to strengthen its position in the world textile market. Currently, India is among the top five countries in the global readymade garments industry. However, China dominates the global market due to low cost of production, better machinery, maximum production of cotton and good quality raw material. After China, Germany, Bangladesh and Vietnam come next. India comes in fifth place, but it has an opportunity to improve its position. According to statistics, India’s textile industry is worth $150 billion, while Bangladesh’s industry is much smaller in size. But India’s exports are worth about $40 billion, while Bangladesh’s are worth $45 billion.
Tags: Bangladesh, Designer clothes, Manufacturing and exports, Sheikh hasina
FIRST PUBLISHED : September 10, 2024, 16:41 IST