Gokaldas Exports, headquartered in Bengaluru, has long been a major supplier of apparel to the U.S. market, with nearly 75% of its exports routed to American buyers. However, following Washington’s decision to impose tariffs of up to 50% on select apparel imports, the company has announced a significant shift in its international growth strategy.
According to company executives, the new plan involves aggressively expanding into the European Union, the UK, and Africa. Africa in particular offers unique advantages: under trade agreements such as AGOA (African Growth and Opportunity Act), Indian companies operating out of nations like Kenya and Ethiopia can secure preferential access to U.S. and EU buyers.
CEO Rahul Agarwal highlighted that this strategy not only insulates Gokaldas from tariff volatility but also positions the company closer to European retail hubs. “The concentration risk of being overly dependent on the U.S. is evident. Our Africa strategy is designed to make us resilient and globally competitive,” he said.
Industry experts believe this move will have ripple effects across India’s textile supply chain. Fabric suppliers, dye manufacturers, packaging firms, and machinery providers will all benefit as Gokaldas increases capacity in new markets. Additionally, joint ventures in Africa may invite participation from Indian textile machinery manufacturers and service providers, creating a new India-Africa textile corridor.
The strategic shift also highlights a broader lesson for Indian exporters: diversification is key. With global trade increasingly influenced by geopolitical tensions and tariff wars, relying on one major market is a risky proposition.
Analysts predict that Gokaldas’ entry into Africa could inspire other mid- to large-sized Indian textile companies to explore partnerships and capacity building in emerging markets. Africa’s low-cost labor, combined with India’s expertise in manufacturing and compliance, may provide the perfect synergy for expansion.
For buyers in Europe, this move translates into more reliable sourcing options. With ESG and compliance standards tightening, India’s strong reputation for sustainable practices could strengthen its foothold in global textile supply chains.
As the global apparel trade faces uncertainty, Gokaldas’ bold pivot sends a message to the wider industry: adaptability and diversification are essential for long-term competitiveness.