Indian Garment Exporters Eye Africa and Beyond to Bypass US Tariffs
Indian garment exporters are exploring production expansion in Africa and beyond to circumvent high USA tariffs. The move comes after USA tariffs on Indian exports surged to 50% on Wednesday, 27 August.
Gokaldas Exports, with factories in Kenya and Ethiopia, and Raymond Lifestyle, with a plant in Ethiopia, are considering shifting production to these African nations. This strategy aims to continue supplying USA customers while avoiding the steep tariffs.
Indian exporters are also looking further afield. They are eyeing Central American countries like Mexico, Costa Rica, and Nicaragua, drawn by lower USA tariffs. Additionally, they are exploring opportunities in regions such as Taiwan and Southeast Asia for production and export expansion.
The 50% USA tariffs on Indian exports have significant implications, with Indian garment suppliers like Gokaldas Exports and Raymond Lifestyle considering production shifts. The long-term impact on USA-India trade volumes, currently over $20bn, remains to be seen. Meanwhile, countries with established manufacturing infrastructures and lower tariffs stand to gain from this business opportunity.
