India’s Gokaldas Exports expects Europe’s share of its exports to rise from 15% to as much as 30% as it courts retailers and expands domestic production amid US tariff uncertainty.
Gokaldas Exports expects Europe to become a far more important market over the next three to five years as the Indian apparel maker tries to reduce its dependence on the United States and position itself for a possible trade breakthrough with the European Union.
Sivaramakrishnan Ganapathi, the company’s vice-chairman and managing director, told Reuters that Europe currently makes up about 15% of exports, but he sees that rising to roughly 25% to 30% as tariff barriers come down and the company builds ties with more European buyers. He said Gokaldas is already in talks with major retailers on the continent as it prepares for duty-free trade, while choosing to expand production in India rather than shift capacity abroad.
The strategy comes as Indian garment exporters look for ways to cushion themselves from tariff uncertainty in the US, which remains their largest market. Gokaldas, whose customers include Gap, Carhartt and JCPenney, expects the US share of its exports to ease from about 69%, though it did not specify a target. The company is also planning 1.25 billion rupees, or about $13.2 million, of investment in fiscal 2027 to raise capacity and modernise facilities.
The move to Europe is being shaped by the wider India-EU trade talks. The European Commission says negotiations for a free trade agreement concluded in January 2026, and the bloc has said the accord would give privileged access to a market of 1.45 billion people while reducing or removing tariffs on more than 96% of EU goods exports. But analysts caution that the benefits will depend on the final rules, including how the deal is implemented, which products are covered and what origin requirements apply.
For now, the US remains a crucial test case for the company. Reuters reported that US apparel imports fell 7% in the first eight months of the year to $49.08 billion, underlining the pressure facing exporters. Ganapathi said Gokaldas’ spring and summer orders for 2027 from the US were stronger than its 2026 holiday season, when shipments from India rose 3% to 4% from a year earlier, with holiday sales set to offer an early signal of demand for next year.
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