BS EDIT: Reckoning in Dhaka

By Business StandardPublished On Aug 7, 2025

One year after Sheikh Hasina’s ouster, Bangladesh has shifted from economic success to political instability under Islamist influence

The garment sector, 83% of exports, has collapsed—140 factories shut, 100,000 jobs lost, and major brands shifting orders abroad

Economic growth has slowed to 3.9% from over 6%, as the Jamaat-i-Islami exploits unrest, backed by Pakistan’s military and US tensions with Hasina

Hasina’s failure to diversify the economy left youth unemployment at 83%, fuelling radicalisation and mass protests

India has lost a key ally; Dhaka now leans toward China, with anti-India sentiment reshaping South Asia’s geopolitical balance

Elections are promised for February, but with Islamists in no rush, India may have to rely on patient diplomacy as in Sri Lanka and the Maldives