Uprising consumer class from Tier 2 & 3 cities | What is going to be the Reliance Jio for Bangladesh?

Reliance Jio is a telecom company. They took a revolutionary step in September 2016 and that not only changed the Indian telecom industry but also created a massive positive impact on the Indian economy.?

They lowered average prices per GB from Rs152 to Rs10. Immediately, India became the 2nd largest base of internet users just after China. This inclusion of crores of people in the digital medium unlocked opportunities for all sorts of internet-enabled businesses.?

This digital adaption boomed the Indian start-up ecosystem as well. From 34cr internet users, Jio boom immediately converted the number into 74cr. These new users were mostly coming from tier 2 & 3 cities. This internet adaption brought massive opportunities for start-ups offering products and services through digital channels. It was like discovering the sail of the iceberg for Indian startups. Suddenly the TAM got bigger, a new consumer class started its upsurge and start-ups enjoyed mammoth growth potential.?

An IFC report says, Jio’s disruptive entry would lead to $10 billion in annual savings for consumers and would expand India’s per capita GDP by about 5.65%. The point I am trying to establish is that a single move in a specific sector can bring an overall impact on the economy like a butterfly effect.?

The price of the internet is still high in Bangladesh and there is no sign that it will be lowered in near future, despite the government's mandate of “Digital Bangladesh”. But Bangladesh has somehow managed the magic touch of transforming its tier 2 & 3 city population into an uprising consumer class. This is not directly linked to the internet, Bangladesh managed to turn the Covid crisis into an opportunity for a major shift towards a manufacturing-friendly environment.

Over the past two years, Bangladesh focussed on the development of mega-economic zones and building infrastructure to woo global firms desperately looking for new production hubs as a hedge against future risks in the wake of a Covid-induced supply chain disruption in China.?

One of the flagship mega infrastructure projects, the Padma bridge is going to be inaugurated on June 25, 2022. According to World Bank, the distance between Dhaka and most of the south-western districts will be reduced to at least 100 km by road. With this road connectivity, an industrial and trading boom is expected in 21 districts in the southwest.? According to a Dhaka Tribune report, the launch of the Padma Multipurpose Bridge is expected to contribute about 1.3 to 2 percent per annum to the country’s GDP. At the same time, with the completion of the Padma Bridge Rail Link project, GDP will grow by another 1 percent.?

Policy support, infrastructure development, easing the connectivity of ports with the domestic manufacturing and export processing zones, simplification of the financial system, and development of backward linkage supply channels in line with the finished goods all help keep the country ahead of becoming a trusted manufacturing hub.?

All these specialized economic zones will create job opportunities for youths living in tier 2 & 3 cities. Already the best talents of the country started living in the sub-urban areas for working in these power plants and other mega projects. When they will finally come into shape, the sub-district towns will experience consumers with the need for e-commerce, food & grocery delivery, and even online education.?

The backbone of the Bangladeshi economy is the RMG industry. These RMG factories are situated in clusters in close geographical proximity with hundreds and thousands of workers. Similarly, all the specialized economic zones will host millions of emerging youth from the small towns. This youth generation is going to be the nucleus of the Bangladeshi economy. All of them will have smartphones, internet connections, and peer pressure to go digital.?So, what stops them from going digital?