In a proactive move to safeguard its business from potential high U.S. tariffs, Gokaldas Exports, a major Indian textile manufacturer, is strategically expanding its presence in Europe and Africa. The company, which currently relies on the U.S. for a significant portion of its sales, is adapting its long-term strategy to ensure continued growth and stability in the global textile industry.

Facing the prospect of a 50% reciprocal tariff under a potential new U.S. administration, Gokaldas has already seen its profit margins shrink. While short-term measures like absorbing costs and offering discounts to major U.S. retailers have helped maintain client relationships, this approach is not sustainable. The company’s managing director, Sivaramakrishnan Ganapathi, stated that such high tariffs would pose a serious barrier to business in the long run.

In response, the Indian textile manufacturer is accelerating its production operations in Africa, specifically in countries like Kenya and Ethiopia, where tariffs are significantly lower. This expansion not only reduces the company's dependency on the U.S. but also meets requests from clients who are seeking products from Africa.

Simultaneously, Gokaldas Exports is aggressively increasing its exports to the European Union and the United Kingdom. By leveraging new trade agreements, the company aims to double the revenue share from these markets within the next two years. This dual-pronged strategy ensures that Gokaldas is prepared for future economic shifts, securing its position as a global leader in the textile industry.