The Bangladesh model

India needs many more low-skill manufacturing jobs

India’s eastern neighbour, Bangladesh, has experienced burgeoning economic growth in recent years. The readymade garments (RMG) industry of Bangladesh, which began to thrive in the 1970s as a result of the international Multi Fibre Arrangement, is an important driver. The country’s RMG exports make up the majority of its overall exports, contributing 84.5 per cent in 2022-23. The sector also accounts for 10.35 per cent of the country’s gross domestic product and employs millions of workers. According to the recent data released by Eurostat, Bangladesh, for the first time, overtook China to become the top knitwear exporter to the European