Gokaldas Exports Targets Higher European Sales to Reduce US Reliance
Indian apparel manufacturer Gokaldas Exports plans to nearly double Europe’s share of its exports over the next three to five years as it seeks to reduce dependence on the United States. Europe currently accounts for around 15% of the company’s exports, but the Bengaluru-based supplier aims to increase this to approximately 25%–30%, according to Vice-Chairman and Managing Director Sivaramakrishnan Ganapathi.
The company expects to benefit from a proposed India-European Union trade agreement, which could reduce import tariffs and improve the competitiveness of Indian garments in European markets. Gokaldas is holding discussions with major European retailers ahead of the anticipated trade deal and plans to expand its manufacturing capacity in India rather than shift production overseas. The company, which supplies brands including Gap, Carhartt and JCPenney, plans to invest ₹1.25 billion ($13.2 million) in fiscal 2027 to expand capacity and upgrade its facilities.
Meanwhile, Gokaldas aims to reduce the share of its exports going to the US from the current 69% to limit exposure to tariffs and policy uncertainty. Despite these concerns, the company reported stronger US orders for the spring and summer 2027 seasons compared with the 2026 holiday season. Industry analysts believe the India-EU trade agreement could create medium-term growth opportunities, depending on its implementation, product coverage and rules of origin.
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