Indian Garment Suppliers Eye African Expansion Amid US Tariffs
US President Donald Trump's recent tariffs on Indian exports have prompted Indian garment suppliers to explore manufacturing expansion in Africa. The 50% tariffs on Indian garments, effective since Wednesday 27 August, and a 25% tariff on Indian purchases of Russian oil and weapons have led companies like Raymond Lifestyle and Gokaldas Exports to consider African countries with lower tariffs.
Raymond Lifestyle, with an existing plant in Ethiopia, plans to shift some production there due to the US tariffs. The company joins other Indian exporters, such as Dharmanandan Diamonds, in considering African countries for expansion. The Mumbai-based diamond manufacturer is exploring increased production in Botswana. Gokaldas Exports, meanwhile, is set to expand in Africa with four factories in Kenya and one in Ethiopia, should US-India tensions persist.
These companies aim to maintain supply to US clothing companies like GAP, despite the expected dramatic drop in trade volume between India and the US. African countries like Kenya, Nigeria, Ghana, and South Africa are attractive due to their growing markets, improving infrastructure, and qualified labor force. However, any shift in manufacturing to Africa is contingent on the tariffs remaining high.
Indian garment suppliers are adapting to US tariffs by exploring production expansion in Africa. Raymond Lifestyle, Dharmanandan Diamonds, and Gokaldas Exports are among the companies considering this shift. The move could help maintain supply to US customers while mitigating the impact of the 50% tariffs on Indian exports, which took effect on August 27, 2025.
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