Bangladesh regime change spells challenges for textile industry

Bangladesh’s textile industry is facing significant challenges amid friction with the interim political regime, leading some industry players to fear economic collapse. 

The textile sector is the largest foreign exchange earner in Bangladesh and it is in its most precarious position in recent years, ET Bureau reported. Bangladesh-based, readymade garment focused entrepreneur Ananta Jalil addressed a public form and stated that Bangladesh’s chief adviser MD Yunus is actively shutting down the country’s clothing industry and that fears of economic collapse are prevalent in the sector, the Economic Times reported. Industry incentives have been eliminated, according to Jalil, which has exacerbated current problems. 

Bangladesh’s textile industry has seen rising levels of unemployment as numerous export-oriented businesses in the country have lost out to global trade. While this poses a threat to the country’s garment sector, a range of Indian textile and clothing businesses are seeking to harness this opportunity to expand their own global export reach. 

Over four million people are directly employed in Bangladesh’s garment industry and over 15 million individuals’ work is indirectly tied to the sector. This includes high levels of women workers, many of whom are facing job insecurity amid the current climate.