Aug 06, 2024 02:53 PM IST
Bangladesh’s garment industry, which contributes about 83% of Bangladesh’s total export earnings remain closed, hitting apparel chains H&M and Zara the worst
Bangladesh’s garments manufacturers body has called for a complete shutdown of all facilities causing a major disruption to the nation’s key industry, according to a BBC report. This comes a day after Prime Minister Sheikh Hasina stepped down and fled the country.
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Which companies will be affected because of Bangladesh’s political situation?
This shutdown of garment factories will hit global apparel giants like H&M and Zara as Bangladesh is a prime hub for producing clothing.
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H&M sources garments from more than 1,000 Bangladesh factories, while Zara’s key manufacturing clusters are based in Bangladesh.
How will the shutdown of garment factories affect Bangladesh’s economy?
Moreover, the ready-made garment industry contributes about 83% of Bangladesh’s total earnings, with Bangladesh exporting $38.4bn worth of clothes in 2023, as per World Trade Organisation (WTO) data.
Bangladesh also ranks number 3 after China and the European Union (EU) when it comes to apparel exports.
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The political situation in Bangladesh thus, creates a huge cloud of uncertainty, especially since multiple reports have mentioned cases of looting in Dhaka and other major cities.
When it came to Sheikh Hasina’s official residence itself, protestors looted anything and everything, with photos of cheerful protesters coming out of the official residence going viral on social media.
The country is currently in a transitional phase and the formation of an interim government is being waited for.