Kolkata is witnessing transformative changes as the Garden Reach Shipbuilders and Engineers (GRSE) sets ambitious goals to double its export component within the next year.
Currently, only 4% of GRSE's order book consists of export contracts, translating to approximately Rs 970 crore of its total Rs 23,877 crore order book. Retired Commodore and GRSE's chairman, PR Hari, pointed out during the earnings call for the December quarter, "Our immediate target is to push this figure to 10% as we explore additional export orders and invest in revitalizing our facilities."
European nations are increasingly viewing India as a new hub for commercial shipbuilding. GRSE is not only focusing on exports but also on ship repair services, which promise greater margins. The company aims to double its revenue from the ship repair segment within the next year, adapting to the rising demand for refitting and repair orders.
With 40 naval platforms currently under contract, GRSE has increased its annual shipbuilding capacity to 24 vessels. To meet the anticipated global demand, plans for establishing a greenfield shipyard are being explored, possibly becoming operational within the next 3-5 years.
PR Hari emphasized, "If we want to upscale to meet global shipbuilding standards – let’s say for commercial vessels reaching 300 meters – we need larger areas to operate. Discussions are still preliminary, but we’re optimistic." This intent coincides with the pending Request for Proposal (RFP) for the P-17 Bravo class of stealth frigates, expected to be released later this year.
Meanwhile, Indonesia faces its own challenges as evident from recent remarks by Luhut Binsar Pandjaitan, Chairman of the National Economic Council (DEN). He stressed the importance of safeguarding the textile industry from the flood of Chinese exports. The textile sector, which employs around 4 million workers, continues to be central to Indonesia's economy.
Despite the hurdles posed by layoffs and increasing competition from foreign firms, including Adidas and Nike pledging to expand their operations, Indonesia saw foreign direct investment (FDI) soar to $903 million—marking over 100% increase over the previous year. The National Economic Council highlights investments between $20 million to $30 million can potentially generate thousands of jobs, showcasing the sector's resilience amid economic pressures.
Yet, the influx of cheaper imports from China, exacerbated by US tariffs redirecting Chinese goods to developing countries, poses threats to local production. Luhut acknowledged, "We must monitor China's export surges to protect our domestic market from illegal imports."
Further highlighting the seriousness of the situation, the Indonesian Filament Yarn and Fiber Producers Association (Apsyfi) reported significant factory closures resulting in job losses. Approximately 30 textile factories shut down between January and May 2024. Concerns are rising about drastic layoffs potentially tripling, indicating the distressing reality of the industry.
Overseas, Pakistan's Citi Pharma Limited has successfully completed its first export to the MENA region, achieving remarkable milestones with its FDA accreditation. Generative $560,000 worth of medical exports is just the first phase, with estimated total annual exports expected to reach between EUR 8 million to EUR 10 million.
Citi Pharma, which commenced operations as a private limited company on October 8, 2012, is rapidly positioning itself within the international market and hopes to expand its presence significantly, anticipating future growth opportunities. Their success aligns with the global trend of businesses seeking to increase their exports as demand fluctuates internationally.
On another end of the spectrum, cross-border e-commerce is set to revolutionize Vietnam's export dynamics as observed by the Department of E-Commerce and Digital Economy (DEDE). Vietnam’s e-commerce market saw impressive growth, surpassing $25 billion last year. This remarkable expansion established the country as one of the top 10 fastest-growing e-commerce markets globally.
Experts project the e-commerce export value could reach $5.8 billion by 2028, significantly enhancing the national economy. "Micro, small, and medium-sized enterprises are increasingly using e-commerce to penetrate international markets," stated Tran Van Trong, General Secretary of the Vietnam E-commerce Association.
Coffee exports are especially noteworthy, with Vietnam achieving $763 million even amid rising demands for processed coffee products, marking significant revenue growth. Nguyen Nguyen, deputy CEO of Trung Nguyen Legend, shared insights on how e-commerce facilitates cultural storytelling alongside sales, enabling Vietnamese coffee culture to reach global consumers.
These developments underline the complex interplay of local and international dynamics affecting trade and export activities across regions. Countries like India, Indonesia, Pakistan, and Vietnam are not only identifying their challenges but also seizing opportunities to solidify their positions within the global trading arena. The path forward hinges on effective policy measures, strategic investments, and the relentless pursuit of innovation to thrive in the ever-evolving global commerce.