Europe currently accounts for around 15% of Gokaldas’ exports. The company expects that proportion to rise to between 25% and 30%, according to vice-chairman and managing director Sivaramakrishnan Ganapathi. The strategy would reduce its dependence on the US market, which currently represents approximately 69% of exports.
The company’s plans reflect wider efforts by Indian garment exporters to manage trade-policy uncertainty while pursuing opportunities in markets where tariffs or market access conditions could improve. The European Union is expected to sign a trade agreement with India by the end of 2026, potentially reducing tariffs on imports. The final commercial benefits will depend on the agreement’s implementation, product coverage and rules of origin.
Gokaldas said it was already holding discussions with major European retailers in preparation for possible duty-free trade, although it did not identify the companies involved. Its customers include international brands such as Gap, Carhartt and JCPenney.
Rather than shifting production overseas, the manufacturer plans to expand capacity and upgrade its existing facilities in India. It is investing 1.25 billion rupees, equivalent to approximately $13.2 million, during the 2027 financial year. The investment is intended to strengthen production capabilities as the company pursues a broader customer base.
The strategy carries both opportunities and risks. A larger European business could reduce exposure to policy changes in the United States and give the company access to additional demand. However, securing new customers requires competitive pricing, reliable delivery, consistent quality, and compliance with the requirements of different markets.
Demand conditions also remain uneven. Gokaldas said US spring and summer orders for 2027 were stronger than those for the 2026 holiday season, when shipments from India increased by 3% to 4% year on year. That provides some support for its existing US business, even as management seeks to limit reliance on a single market.
The next stage will depend on whether the India–EU trade agreement is concluded on terms that improve competitiveness and whether negotiations with European retailers translate into firm orders. Investors will also monitor the company’s capacity expansion, export mix and demand trends in the United States. Gokaldas’ progress could offer an indication of how Indian apparel suppliers are adapting their supply chains to a more uncertain global trading environment.
