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Indian Giant Gokaldas Expands to Africa as US Tariffs Bite

By Erewunmi Peace

Indian apparel exporter Gokaldas Exports Ltd. has announced plans to expand production into Africa, particularly in Kenya and Ethiopia, as part of its strategy to counter the impact of steep U.S. tariffs on Indian-made garments.

The move comes after the United States imposed tariffs of up to 50% on certain Indian textile and apparel products, squeezing margins for exporters. By shifting part of its manufacturing base to Africa, Gokaldas will benefit from significantly lower tariffs of about 10%, giving the company a competitive edge in the American market.> “The high tariffs have made it increasingly difficult to remain competitive from India alone. Expanding into Africa allows us to diversify our footprint, reduce costs, and continue serving our U.S. clients effectively,” said Gokaldas Exports Managing Director Rahul Agarwal.

Beyond Africa, the company is also increasing exports to the European Union and the United Kingdom, where demand for Indian apparel remains strong. Analysts say the shift highlights how Indian exporters are adapting supply chains to protect profitability amid global trade tensions.

The expansion into Africa is expected to create jobs locally while also strengthening Gokaldas’ resilience in the global market. However, industry experts caution that challenges such as logistics, regulatory frameworks, and local infrastructure could affect how quickly the company reaps benefits from its new strategy.

Founded in 1979, Gokaldas Exports is one of India’s largest apparel manufacturers, supplying global brands like H&M, Zara, and Gap. The company currently employs over 25,000 workers in India and operates dozens of factories across the country.

With this African move, Gokaldas joins a growing number of Indian exporters looking to bypass trade barriers by establishing overseas production hubs.

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