Bangladesh’s garment industry embraces AI, raising concerns of job loss
AI technology has also allowed the fashion supplier, which employs about 10,000 workers, to dismiss dozens of human quality inspectors
Bangladesh is the
world’s second-biggest garment exporter
By Eastern EyeNov 14, 2024
IN THE industrial town of Rupganj outside Dhaka, clothing manufacturer Fakir Fashions is using artificial intelligence to automatically pause production and avoid waste when something goes wrong in its knitting operations.
AI technology has also allowed the fashion supplier, which employs about 10,000 workers, to dismiss dozens of human quality inspectors, said managing director Fakir Kamruzzaman Nahid.
Suppliers and brands across the $1.7 trillion (£1.3t) global fashion industry are beginning to use AI technology, such as in cameras and sensors that detect defects, to boost production and to reduce their environmental impact, including by monitoring emissions and water use.
The sector is responsible for between two per cent to eight per cent of global greenhouse gas emissions that cause climate change. It is also one of the world’s major polluters of water sources and produces vast amounts of waste that wind up in landfills.
While AI could help improve the apparel business’ environmental track record, it also poses a threat to some of the 75 million jobs in the labour-intensive industry worldwide, already under pressure from other forms of automation.
“We know what is coming on fashion’s AI front - and if workers do not get to have a say about how it impacts them, they are at a disadvantage as a class,” said Christina Hajagos-Clausen, textile and garment industry director at IndustriALL Global Union, a Geneva-based global federation of unions.
Most global fashion brands are looking at how generative AI can improve their businesses, with 73 per cent of executives saying in a survey by consulting firm McKinsey that they consider AI a priority in the coming years.
While there is no comprehensive research into AI’s potential to reduce the industry’s emissions, a few studies offer clues at how it might help. For example, using digital samples of clothes before going into production could cut carbon dioxide emissions by 30 per cent in the design and development of clothes.
In Bangladesh, the world’s second-biggest garment exporter, about 60 per cent of apparel workers, or 2.7 million people, risk losing their jobs due to automation including AI, according to the International Labour Organization.
But some experts believe the textile industry will still need human labour, especially for complex, high-skilled work.
“The influence of AI on jobs is a million-dollar question that we are all pondering, and my wager is that AI in fashion will complement rather than replace humans,” said Shahriar Akter, professor of analytics and innovation at Australia’s University of Wollongong. While Fakir Fashions reduced its quality control workforce after bringing in AI, Nahid said the money it saved on those wages and on the hundreds of kgs of waste the tools prevented will enable it to expand operations – and add new jobs.
“To stay competitive, we need to cut costs and adopt new innovations. But better tools also will bring us business and make up for the job losses,” he told the Thomson Reuters Foundation.
Sweden’s H&M Group, the world’s second-largest clothing retailer, has said it is investing in AI tools to recycle post-consumer waste and reduce deforestation by fashion manufacturers.
The pace of AI adoption, and automation in general, varies across the textile industry.
In Bangladesh, companies still largely rely on manual labour to sew and stitch clothes, but fully automated machines that knit sweaters have already drastically cut jobs.
Yousuf Jamil, who works at a sweater factory in the town of Gazipur, said he oversees six machines and accomplishes what a dozen people could do manually. But he receives the same pay as a worker weaving a T-shirt.
“The fashion industry needs a comprehensive plan for reskilling workers, either for keeping their jobs within the industry or transitioning to other jobs in the coming years,” said Amirul Amin, president of the National Garment Workers Federation (NGWF) of Bangladesh.
The US-based startup Shimmy Technologies works with brands and nonprofit organisations, including H&M and the development organisation Asia Foundation, to provide workers with gamebased training apps that teach them how to operate new machines at factories in Bangladesh and Central America.
“In this world of AI, there will be a need for constant upskilling, and you cannot meet that need at scale by providing classroom-based training alone,” said Sarah Krasley, who founded Shimmy Technologies in 2016.
While low-skilled jobs are most at risk, the growing use of AI in the textile industry will create demand for better paid engineers and technicians, said AI engineer Zahid Hasan, who works with local fashion suppliers in Bangladesh.
As apparel workers in Bangladesh and else where brace for the impact of AI on their livelihoods, Akter of the University of Wollongong said now is the critical time to prepare for the inevitable disruption ahead.
“We are still on the cusp of the AI revolution in the fashion industry, and we need strategies to harness the power of AI to benefit workers and the environment,” said Akter. (Thomson Reuters Foundation)
THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.
Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.
Growth for March was revised up to 0.4 per cent from a previous reading of 0.2 per cent, according to the ONS.
The increase followed growth of just 0.1 per cent in the fourth quarter of 2024. However, GDP fell by 0.3 per cent in April from March, a decline affected by one-off factors.
Outlook for Q2 and pressure on budget targets
The Bank of England expects the economy to grow by about 0.25 per cent in the second quarter of 2025.
Finance minister Rachel Reeves is hoping for stronger growth to reduce pressure to raise taxes again later this year in order to meet her budget goals.
Thomas Pugh, chief economist at RSM UK, said weak consumer spending and hiring data in recent weeks likely reflected a short-term reaction to an employer tax increase and the US tariffs, many of which have now been suspended.
"Now that uncertainty has started to recede, consumer confidence is rebounding, and business surveys point to the worst of the labour market pain being behind us," Pugh said.
A separate survey published on Monday showed employer confidence in Britain had reached a nine-year high, with businesses more optimistic about the economy.
Interest rate cuts expected; energy prices a risk
The Bank of England is expected to cut interest rates two more times in 2025, which could support household spending.
However, a renewed rise in energy prices caused by further conflict in the Middle East could add pressure to the already slow-growing economy.
According to Monday’s ONS data, household expenditure grew by 0.4 per cent in the first quarter, revised up from an initial estimate of 0.2 per cent. The increase was led by spending on housing, household goods and services, and transport.
The UK property market saw increased activity ahead of the 31 March expiry of a tax break for some homebuyers.
Savings fall, manufacturing rises
Households drew from their reserves to support spending, with the saving ratio falling for the first time in two years. However, at 10.9 per cent, it remained high.
Manufacturing output rose by 1.1 per cent in the first quarter, ahead of the US tariff increase in April, compared with the final quarter of 2024.
The ONS also reported that the UK’s current account deficit widened to 23.46 billion pounds in the January-to-March period, up from just over 21 billion pounds in the previous quarter.
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Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.
Here are the key issues at play:
HURDLES TO A TRADE DEAL
India's dependence on agriculture – a major source of rural jobs – has made it politically difficult for New Delhi to accept US demands for steep tariff cuts on corn, soybean, wheat and ethanol, amid risks from subsidised US farm products.
Domestic auto, pharmaceutical, and small-scale firms are lobbying for only a gradual opening of the protected sectors, fearing competition from US firms.
The US is pushing for greater access to agricultural goods and ethanol, citing a significant trade imbalance, along with expanded market access for dairy, alcoholic beverages, automobiles, pharmaceuticals, and medical devices.
"LACK OF RECIPROCITY"
Despite India offering to cut tariffs on a range of farm products, give preferential treatment to US firms, and increase energy and defence purchases, Indian officials say they are still awaiting substantive proposals from Washington amid Trump's erratic trade policies.
Indian exporters remain concerned about US tariff hikes, including a 10 per cent average base tariff, 50 per cent on steel and aluminium, and 25 per cent on auto imports, as well as a proposed 26 per cent reciprocal duty that remains on hold.
STRATEGIC ALIGNMENT
Indian policymakers see the US as a preferred partner over China but remain cautious about compromising policy autonomy in global affairs.
The US is India’s largest trading partner and a major source of investment, technology, energy, and defence equipment.
TENSIONS OVER PAKISTAN
India remains wary of deeper strategic ties after Trump’s perceived tilt toward Pakistan during a recent conflict between the neighbours, which raised doubts about US reliability.
GROWING INDIAN EXPORTS TO US
New Delhi is confident exports will continue to grow, especially in pharmaceuticals, garments, engineering goods and electronics, helped by tariff advantage over Vietnam and China.
India's goods exports to the US rose to over $87 billion in 2024, including pearls, gems and jewellery worth $8.5 billion, pharmaceuticals at $8 billion, and petrochemicals around $4 billion.
Services exports – led by IT, professional and financial services – were valued at $33 billion in 2024.
The US is also India's third-largest investor, with over $68 billion in cumulative FDI between 2002 and 2024.
US EXPORTS TO INDIA
US manufacturing exports to India, valued at nearly $42 billion in 2024, face high tariffs, ranging from 7 per cent on wood products and machinery to as much as 15 to 20 per cent on footwear and transport equipment, and nearly 68 per cent on food.
According to a recent White House fact sheet, the US average applied Most Favoured Nation (MFN) tariff on farm goods was 5 per cent compared to India’s 39 per cent.
(With inputs from Reuters)
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Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)
VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.
The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.
According to Vedanta's exchange filing on Thursday, the lenders involved in the deal include Standard Chartered Bank and its Mauritius unit, First Abu Dhabi Bank, Mashreqbank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt.
The company lowered its net debt by £876m, bringing it down to £8.1 billion in fiscal 2025.
(With inputs from Reuters)
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Trump said that while deals are being made with some countries, others may face tariffs.
US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.
“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.
The president also mentioned a trade agreement with China but did not provide details. "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals," he said.
‘Some we are just gonna send a letter’
Trump said that while deals are being made with some countries, others may face tariffs. "We're not gonna make deals with everybody. Some we are just gonna send a letter saying thank you very much, you are gonna pay 25, 35, 45 per cent. That's an easier way to do it," he said.
Trump's comments come as an Indian delegation led by chief negotiator Rajesh Agarwal arrived in Washington on Thursday for the next round of trade talks with the US.
Talks ahead of July 9 deadline
Both countries are working on an interim trade agreement and are aiming to conclude it before July 9. The US had announced high tariffs on April 2, but the Trump administration suspended them until July 9.
Agriculture and dairy remain sensitive areas for India, which has not included dairy in any of its free trade agreements so far. India is cautious about offering duty concessions in these sectors.
The US is seeking duty reductions on items such as industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, dairy products, and agricultural goods like apples, tree nuts, and genetically modified crops.
India, on the other hand, wants duty concessions for sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.
The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.
The main blow to Asda’s finances has come from its heavy debt load, a legacy of its £6.8bn buyout by the Issa brothers and private equity firm TDR Capital in 2021.
According to the report, the company’s debt pile, now close to £5bn, has become much more expensive to service as interest rates have risen. Last year, finance costs jumped by 38 per cent to £611 million, up from £441 million the previous year
Asda said it was forced to pay higher rates after refinancing part of its debt, putting further pressure on its bottom line.
Another major factor behind the loss is the ongoing “Project Future” – Asda’s multi-year plan to separate its computer systems from former owner Walmart. The project has been beset by delays and cost overruns, with total spending now approaching £1bn, far above its original budget
Last year alone, Asda spent £310m on the IT transition, which has included job cuts and outsourcing as the company tries to control costs. Problems with the new systems have also led to pay errors for thousands of staff.
While overall revenue rose thanks to new store openings, underlying sales have slipped. Like-for-like sales, excluding fuel, fell by 3.4 per cent to £21.7bn, with food sales down 3.7 per cent.
Meanwhile, Asda’s share in the UK grocery market has dropped to a record low of 12.1 per cent, with the retailer losing ground to rivals such as Tesco, Aldi, and Lidl
Despite efforts to win back shoppers with price cuts and a new convenience store push, Asda was the only major supermarket to report a sales decline in recent months, analysts said.
The company’s results were also hit by a £378m impairment charge, reflecting a drop in the value of its stores and assets. These one-off costs, combined with the IT spending, were singled out by Asda as the main reasons for the headline loss.
“The reported overall loss is the result of two significant one-off costs,” an Asda spokesman said, pointing to the impairment and Project Future costs. “These are not recurring costs and do not reflect the underlying performance of the business”
Allan Leighton, who returned as chairman last year, has launched a price war and cost-cutting drive to try to restore Asda’s fortunes. He has described many of the company’s problems as “self-inflicted” and is aiming to “turn it into what it was”. However, he has warned that a full recovery could take several years.
Despite the bleak headline numbers, Asda insists its core business remains profitable, with a pre-tax profit of £115m before exceptional items. Adjusted earnings before rent also rose slightly to £1.14bn.