Apparel manufacturer Gokaldas Exports expects Europe’s share of its exports to increase from around 15% to 25%-30% over the next three to five years, as it prepares for improved market access under a proposed India-European Union (EU) trade agreement.
The company is looking to diversify its export markets amid uncertainty over US tariffs and expects Europe to become a larger contributor to its business. The EU is expected to sign a trade agreement with India by the end of 2026, which could reduce tariffs on Indian apparel exports.
Sivaramakrishnan Ganapathi, Vice-Chairman and Managing Director of Gokaldas Exports stated that Europe accounts for around 15% of our exports. Over the next three to five years, we expect Europe’s share to increase to approximately 25% to 30%.
Ganapathi added that the company is holding discussions with major European retailers in preparation for potential duty-free trade. It is also expanding manufacturing capacity in India rather than shifting production to other countries.
Gokaldas Exports, whose customers include Gap, Carhartt and JCPenney, plans to invest Rs. 1.25 billion (US $13.2 million) in fiscal 2027 to expand its overall capacity and upgrade existing facilities.
Meanwhile, the company expects the US to account for a smaller share of its exports over time, down from the current 69%, as it seeks to reduce its exposure to tariff-related disruptions and policy uncertainty. However, it has not specified a target for reducing its dependence on the US market.
Demand conditions in the US remain mixed. US apparel imports from across the world declined 7% to US $49.08 billion during January-August, according to government data.
However, Gokaldas Exports reported stronger US orders for the spring-summer 2027 season compared with the 2026 holiday season. Its shipments from India to the US increased 3%-4% year-on-year during the 2026 holiday season.
