Indian apparel supplier Gokaldas Exports expects Europe to nearly double its share of exports as it benefits from a proposed trade deal, while diversifying beyond the US, a top executive told Reuters.
Domestic garment exporters are looking beyond the United States as uncertainty over tariffs persists, while anticipating stronger demand from Europe as India secures better trade access.
“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%,” said Sivaramakrishnan Ganapathi, Gokaldas’ vice-chairman and managing director.
The European Union is expected to sign a landmark trade deal with India by the end of 2026, cutting tariffs on imports.
Gokaldas is “actively holding discussions with major European retailers in preparation for duty-free trade,” Ganapathi said without naming them, adding it is boosting capacity in India instead of moving production elsewhere.
The exporter, whose top customers include brands such as Gap, Carhartt, and JCPenney, is investing 1.25 billion rupees ($13.2 million) in fiscal 2027 to expand overall capacity and upgrade facilities.
US apparel imports from across the globe fell 7% to $49.08 billion in January-August, government data showed. But Gokaldas’ US spring and summer orders for 2027 were stronger than the 2026 holiday season, when its shipments from India rose 3%-4% from a year earlier, Ganapathi said. He added that holiday sales would provide an early indication of demand for next year.
