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Indian textile giant Gokaldas Exports is reworking its global strategy as steep US tariffs threaten profitability. The company, which earns about 75% of its sales from the United States and supplies retailers like Walmart and Gap, expects profit margins to shrink sharply from recent highs due to recent US trade policies. To cushion the blow, Gokaldas is expanding production in Africa, particularly Kenya and Ethiopia, where tariffs are lower. It is also shifting exports toward the United Kingdom and the European Union, markets set to benefit from the UK-India Free Trade Agreement. Executives warn that US tariffs could make long-term business operations unviable, leaving Africa and Europe as increasingly vital growth frontiers for India’s $38 billion textile export industry.
Business Standard