Gokaldas Exports, one of India’s leading apparel manufacturers and exporters, expects Europe’s share of its exports to increase from around 15% currently to 25–30% over the next three to five years, as it prepares to benefit from a proposed India-European Union (EU) trade agreement and diversify its markets beyond the United States.
Sivaramakrishnan Ganapathi, Vice-Chairman and Managing Director of Gokaldas Exports, told Reuters that the company anticipates stronger demand from Europe as improved trade access potentially makes Indian apparel more competitive in the region.
“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%-30%,” Ganapathi said.
The European Union is expected to sign a landmark trade agreement with India by the end of 2026. The proposed deal is expected to reduce tariffs on imports, potentially improving the competitiveness of Indian garment exporters in European markets.
Gokaldas Exports is already engaging with major European retailers in anticipation of improved market access. The company is “actively holding discussions with major European retailers in preparation for duty-free trade,” Ganapathi said, without disclosing the names of the retailers.
Rather than relocating production overseas, the company plans to strengthen its manufacturing capacity in India to support future growth.
₹125 Crore Investment Planned for FY27
Gokaldas Exports plans to invest ₹1.25 billion (₹125 crore) during the 2026–27 financial year to expand its overall production capacity and upgrade existing facilities.
The company serves international brands including Gap, Carhartt and JCPenney. Its planned investment is aimed at supporting customer demand while strengthening its manufacturing capabilities in India.
US Market Remains Important Amid Tariff Uncertainty
The company’s expansion into Europe comes as Indian garment exporters seek to diversify their markets amid continuing uncertainty over US tariffs.
US apparel imports from across the world declined 7% to $49.08 billion during January–August, according to government data cited in the report.
However, Gokaldas Exports has seen encouraging demand signals from the US market. Its orders for the spring and summer 2027 seasons were stronger than those for the 2026 holiday season, Ganapathi said.
The company’s shipments from India to the US increased by 3–4% year-on-year during the 2026 holiday season.
Ganapathi noted that holiday sales would provide an early indication of demand for the following year, making the upcoming retail season an important indicator for exporters planning production and capacity.
With its proposed capacity expansion and increased focus on Europe, Gokaldas Exports is positioning itself to capitalise on potential improvements in India’s trade access while reducing its dependence on a single major export market.