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Dhaka: <keyword id="19919639" type="General" weightage="20" keywordseo="bangladesh" source="keywords">Bangladesh</keyword>'s garment industry, a vital economic pillar, is facing a severe crisis due to a volatile mix of <keyword id="20444027" type="General" weightage="20" keywordseo="political-unrest" source="keywords">political unrest</keyword>, including violent protests, and catastrophic flooding, threatening to unravel years of rapid growth and global prominence. The textile and garment industry, which accounts for over 80 per cent of Bangladesh's total export earnings and contributes approximately 11 per cent to the nation's GDP, has been hit hard. This industry contributes significantly to export earnings and employs millions. Following the unprecedented anti-government protests, which reached a crescendo on August 5, Sheikh Hasina resigned as prime minister and fled the country. She landed in India on August 5 and is currently staying there. The two-month-long anti-quota protests have led to widespread demonstrations, curfews, and violence. This unrest has not only disrupted factory operations but has also caused significant economic losses. Factories were forced to close, and with the peak season for Christmas shipments and the booking of next season's orders upon us, the timing of the unrest has exacerbated the crisis. The Bangladesh Garment Manufacturers and Exporters Association (<keyword id="22930680" type="General" weightage="20" keywordseo="BGMEA" source="keywords">BGMEA</keyword>) recently has reported substantial financial losses, estimating a shortfall of Tk 6,400 crore (approx Rs 4,500 crore) due to the shutdowns and communication breakdowns. Khandoker Rafiqul Islam, the newly elected president of the BGMEA, mentioned that the goal of reaching nearly USD 45 billion in exports this year may not be achieved. He attributed this to disruptions in both export activities and production. "I think this is a temporary crisis and we will tide over it. The exact magnitude of the losses will be known later, but yes, there has been an impact," he told PTI. Echoing similar sentiments, former cabinet minister and president of BGMEA, Gholam Sarwar Milon, said the garment industry has been badly hit by both the political unrest and the floods, as both production and the supply chain of raw materials have been severely affected. "The crisis in the garment industry is unprecedented. Production is nearly 15-20 per cent less than the corresponding period last year. Several orders have dried up as investors and order suppliers are wary about investing. Several small factories have either closed down or are working on sub-contracts for big factories," he told PTI. According to BGMEA sources, out of 3,000 major and small garment factories in Bangladesh, nearly 800-900 have closed since last year. "The big factories have survived, but the small and medium factories have borne the brunt. If the situation persists, it will worsen further," he said. Milon suggested that the garment industry needs to diversify into making jute bags and other high-end clothing and also look for new markets. The Bangladesh Textile Mills Association has projected losses of around USD 58 million. The impact on the industry is compounded by the recent flooding, which has further disrupted logistics and exacerbated the economic fallout. Bangladesh's main port, Chattogram, through which more than 90 per cent of the country's international trade transits, has become a focal point of the chaos. The port's operations were paralysed during the political unrest, leading to significant delays in shipments. Factories have struggled to maintain production schedules, and backlogs at ports and airports have stretched to a month in some cases. To mitigate the damage, factories have turned to air freight and extended working hours, but these measures have not fully alleviated the delays. The president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Mohammad Hatem, said orders are down by 15-20 per cent. "The industry has incurred huge losses in the last few months. In 2014, during political unrest, we suffered a similar situation. It then took us three years to return to the previous state. We hope to tide over the situation soon as Chief Advisor <keyword id="20024384" type="General" weightage="20" keywordseo="muhammad-yunus" source="keywords">Muhammad Yunus</keyword> is taking several steps to restore normalcy," he told PTI. Hatem feels that if the situation is not overcome soon, there is a growing perception that foreign investors might look at new markets in other South Asian nations. "However, other South Asian markets don't have the infrastructure like Bangladesh, which has such huge production capacity," he said. The garment industry's workforce, which employs over 4 million people directly and nearly 15 million indirectly, with a significant proportion of women, faces mounting uncertainty. The sector's remarkable growth over the past two decades-from USD 5 billion in exports in 2001 to nearly USD 40 billion in 2023-now stands at risk. The floods have compounded the challenges, causing damage to infrastructure and further complicating logistics. Monsoon rainfall-triggered floods in deltaic Bangladesh and upstream Indian regions have killed several people and marooned or affected nearly 3 million others in Bangladesh, posing a huge administrative challenge to the newly installed interim government amid a political transition. "Due to the floods, the supply chain has been badly affected. We reached a high in 2023-24 where our garment exports touched around USD 46 billion. This time it is likely to be much less," said former army major and owner of a woollen garment factory, Mahfuzur Rehman. The sector's growth from a small-scale operation in the early 1980s to becoming the world's second-largest apparel exporter, after China, underscores its strength. In the financial year 2009, Bangladesh's apparel exports were valued at USD 12 billion. By the financial year 2023-24, this figure had surged to over USD 46 billion, reflecting the industry's capacity for recovery and growth even amid adversity. In response to the crisis, the interim government, now led by Nobel Peace Prize-winning economist Muhammad Yunus, has prioritised restoring order and stability. According to garment industry insiders, the path to recovery is fraught with challenges as the political instability has undermined investor confidence, and the recent flooding has further strained the already fragile infrastructure. "The sector's resilience will be tested as it attempts to regain its footing and restore its reputation as a reliable global supplier," a garment industry owner, who did not wish to be named, said. He added that despite the current crisis, Bangladesh's textile and garment industry has shown great strength and the ability to recover in the past.

Bangladesh garment industry faces crisis amid political unrest and floods

New Delhi: The Indian garment and knitted fabric sector is witnessing a bit of uncertainty due to the <keyword id="22498521" type="General" weightage="20" keywordseo="Bangladesh-crisis" source="keywords">Bangladesh crisis</keyword>, Finance Minister <keyword id="19916618" type="General" weightage="100" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> said on Saturday, expressing hope that the interim government there will settle things "sooner rather than later." Interacting with the media on the sidelines of customary post Budget address to the central board of <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>, she said efforts are being taken to ensure that borders with the neighbouring country are safe. With regard to Indian investments, she said, the textile industry particularly from Tamil Nadu has made investments there in good faith and they have done well having gone there. "The exports from <keyword id="19919639" type="General" weightage="20" keywordseo="bangladesh" source="keywords">Bangladesh</keyword> also increased because of the duty and quota liberal approach that we have towards low-income countries. They (Indian garment industry based in Bangladesh) could even export to India." Particularly, she said, the garment and knitted fabric sector is seeing a bit of uncertainty because of the crisis in the neighbouring country. "I hope that the investments are all safe... it's too early for me to see what kind of an impact this situation in Bangladesh will have on our economy. I hope that the interim government will settle things sooner rather than later so that both the people of Bangladesh and India can get back to normalcy," she said. Earlier this week, Bangladesh plunged into a political crisis when Sheikh Hasina resigned as the Prime Minister and fled the country. Soon after Parliament was dissolved leading to the creation of an interim government. The 84-year-old Nobel laureate Muhammad Yunus on Thursday took oath as the head of an interim government, replacing Sheikh Hasina who abruptly resigned and fled to India leaving the country in turmoil following deadly protests against her government over a controversial quota system in jobs. On Friday, Bangladesh's interim leader Yunus announced the portfolios of his 16-member council of advisors and named a former top diplomat to head the foreign ministry. The Nobel laureate's first task is to bring stability to Bangladesh after he responded to a call by student protesters for him to temporarily lead the country following weeks of deadly anti-government demonstrations against the government led by Sheikh Hasina.

Garment sector facing uncertainty due to Bangladesh crisis, normalcy may return soon: FM Nirmala Sitharaman

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Sarah Waiswa/Getty Images</div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/how-to-save-money-2019-2">Saving money</a> is important - whether in an <a href="https://www.businessinsider.com/how-much-money-to-save-in-emergency-fund-rules">emergency fund</a>, <a href="https://www.businessinsider.com/best-way-to-save-for-retirement">retirement accounts</a>, <a href="https://www.businessinsider.com/how-to-open-high-yield-savings-account-online-save-money">high-yield savings accounts</a>, or elsewhere.</li><li>But <a href="https://www.businessinsider.com/how-to-invest-money">investing your money</a> is more likely to yield higher returns. </li><li>If you're not sure how to get started and only have a small pot of money to work with, robo-advisers, microloans, and startups are great opportunities to invest.</li><li>Open an invesment account with <a href="https://betterment.evyy.net/BQXmJ">Betterment</a> or <a href="https://wealthfront.pxf.io/03JEN">Wealthfront</a> today and watch your money grow »</li></ul>We've all heard it: The best way to make money is to have money. 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There are theoretically infinite ways to "invest" your money, as all it takes is capital and a way to get return on that capital.However, for most individuals with a full-time job, investments are thought of as a passive, low-effort mechanism for seeing moderate gains. And when it comes to <a href="https://www.businessinsider.com/how-to-calculate-return-on-investment-earnings-roi">return on investment</a> relative to risk and effort, there are some clear winners.We outlined three of the best ways to invest with just $500 and little more than a laptop.<h2>1. 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Open a brokerage account with <a href="https://betterment.evyy.net/BQXmJ">Betterment</a> or <a href="https://wealthfront.pxf.io/03JEN">Wealthfront</a> today and watch your money grow »<h2>2. Invest in a startup </h2>Normally, to invest in a private company, you need to be an accredited investor, which the <a href="https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-bulletin-accredited-investors" target="_blank" rel="noopener">SEC defines</a> as an individual income of over $200,000 or a net worth of $1 million. However, with <a href="https://microventures.com/">MicroVentures</a>, you can start investing through crowdfunding for as little as $100.MicroVentures is a FINRA-registered marketplace that aggregates individual investments through the accredited First Democracy VC, which then allows for investment in early-stage companies in what's known as <a href="https://microventures.com/equity-crowdfunding" target="_blank" rel="noopener">equity crowdfunding</a>. Think Kickstarter, except you get to make profits (MicroVentures does have an <a href="https://equity.indiegogo.com/" target="_blank" rel="noopener">active partnership</a> with Indiegogo).MicroVentures tries to eliminate some of the risk by vetting early-stage startups to find primary and secondary investment opportunities that have funding needs ranging from $150,000 to over a $2 million, and their <a href="https://microventures.com/about/portfolio" target="_blank" rel="noopener">portfolio of companies</a> includes 23andMe, Bonobos, and HotelTonight. However, you should take note: This is not an option for those who need liquidity. 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Typically referring to loans of less than $50,000, microloans are a way for businesses to get capital outside of traditional banks.<a href="https://www.kiva.org/">Kiva</a> is probably the leading name in this field, however, it's a non-profit that primarily targets social impact in developing countries.If you want to loan out your money as a means of wealth generation, your best option with $500 or less to invest is <a href="https://www.prosper.com/">Prosper</a>. It's a peer-to-peer lending network that allow you to receive monthly payments with interest in exchange for a principal loan. (<a href="https://www.lendingclub.com/">Lending Club</a> is another option but requires a minimum of $1,000 to get started.)As far as performance goes, Prosper has seen an average of 3 to 8% in historical returns, with performance increasing the more diversified a portfolio becomes. However, one big thing to note is state availability. State regulations around microloans differ, and before you do anything, you need to check if investing in microloans is even a possibility for you. <h2>The bottom line</h2>Whether you want to invest in securities, startups, or microloans, you should always do so with liquid money. If you have money you're saving for a mortgage or student loans, this is not the place to invest it.The fundamental principle underlying investments is you're taking on higher risk for the chance of more gains, and that higher risk means you may lose your money (or, at the very least, see a short-term decrease in value).That being said, almost every wealthy individual has an array of investments increasing their wealth, and there's no reason you can't join in on the party.As long as you are disciplined and don't over-leverage yourself, it's not unrealistic to see gains of two to three times that of traditional savings instruments. Do your research, make a plan, and get started.<ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/personal-finance-insider">personal finance</a> coverage</li><li><a href="https://www.businessinsider.com/best-airline-credit-card-comparison-delta-united-american">What's the best airline credit card?</a></li><li><a href="https://www.businessinsider.com//best-cash-back-credit-cards">The best cash back credit cards</a></li><li><a href="https://www.businessinsider.com/are-cds-a-good-investment">Are CDs a good investment?</a></li><li><a href="https://www.businessinsider.com/when-to-save-money-in-high-yield-savings">When to save money in high-yield savings</a></li><li><a href="https://www.businessinsider.com/best-rewards-credit-cards">Best rewards credit cards</a></li></ul>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

3 ways to get started as an investor for as little as $500

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Bangladesh garment industry faces crisis amid political unrest and floods

PTI

Garment sector facing uncertainty due to Bangladesh crisis, normalcy may return soon: FM Nirmala Sitharaman

PTI

3 ways to get started as an investor for as little as $500

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