Gokaldas Exports whose global customer base features apparel brands like Gap, Carhartt and JCPenney has earmarked $13.2 million in fiscal 2026-27 to increase overall capacity and modernise its plants.
The company which is among India’s biggest garment exporters also anticipates that Europe’s weightage within its order book will almost double, as a prospective trade agreement improves market access and the company reduces its reliance on America.
Indian clothing manufacturers are increasingly casting their nets beyond the US while tariff uncertainty lingers and are banking on firmer European demand once New Delhi secures preferential terms.
“Europe currently contributes roughly 15% of what we ship. Across the coming three to five years, we foresee that proportion climbing to somewhere between 25% and 30%,” said Sivaramakrishnan Ganapathi, VC and MD at Gokaldas told Reuters.
The EU is widely expected to conclude a landmark accord with India before 2026 ends, slashing duties on goods entering the bloc.
Ganapathi said the firm is actively holding discussions with major European retailers in preparation for duty-free trade, though he declined to identify the buyers concerned. Rather than relocating output overseas, he added, Gokaldas is scaling up Indian capacity.
Gokaldas expects the American slice of its business, currently 69%, to shrink, a move intended to limit exposure to sudden tariff shocks and shifting policy.
Elsewhere, American apparel purchases from all global suppliers slid 7% to $49.08 billion over January to August, official statistics indicated.
Even so, Ganapathi reported that Gokaldas’ US spring and summer 2027 orders look healthier than those placed for the 2026 festive season, when its Indian shipments grew by 3%-4% year on year. Festive-period sales, he noted, would offer an early read on next year’s demand.
Image courtesy: The Hindu
