Indian apparel manufacturer Gokaldas Exports Ltd is accelerating its African growth strategy in response to mounting U.S. trade pressures. The company announced plans to expand production in Kenya and Ethiopia, aiming to take advantage of Africa’s comparatively lower tariff rates and diversify its export base.
Currently, the U.S. accounts for nearly 75% of Gokaldas’ sales, with global retailers such as Walmart, Gap, and JCPenney among its key clients. However, Washington’s imposition of a 50% levy on imports from India has forced the company to explore alternative routes. By shifting output to its African units, Gokaldas can benefit from a baseline 10% tariff when supplying to the European Union and the United Kingdom.
“If the reciprocal tariff of 50% continues in the long term, it would be difficult to do business with the United States,” Managing Director Sivaramakrishnan Ganapathi told Reuters, underlining the urgency of the company’s shift in strategy.
The move underscores the growing role of Africa as a production hub for global textile and apparel makers seeking tariff-friendly access to Western markets.
