Gokaldas Exports, a leading Indian garment manufacturer, has announced it will indefinitely postpone plans to construct a new factory in Bangladesh. The decision comes in light of the ongoing political instability and violence that has gripped the country in recent weeks.
Sivaramakrishnan Ganapathi, vice chairman and managing director of Gokaldas Exports, explained that the company had been closely monitoring the situation in Bangladesh and felt that the current climate was not conducive to a significant investment. While contract manufacturing will continue, the company is now focusing on expanding its operations within India.
The decision comes as Bangladesh grapples with a political crisis that has seen Prime Minister Sheikh Hasina forced to flee to neighbouring India. Student-led protests against a government jobs quota have escalated into violent clashes with pro-government supporters, resulting in hundreds of deaths.
According to the UN Human Rights Office, more than 600 people have lost their lives during the weeks-long unrest. The escalating violence has raised concerns about the safety and security of foreign investors operating in the country.
