India: Garment sector expands in Africa to mitigate impact of US tariffs
“Indian exporters turn to Africa as US tariffs come into effect,” 29 August 2025
Indian exporters are looking to expand production in Africa to continue supplying their US customers after US tariffs of 50% on Indian exports went into effect on Wednesday 27 August.
Indian garment suppliers such as Gokaldas Exports and Raymond Lifestyle, which sell to US clothing companies such as GAP, are looking to capitalise on tariffs as low as 10% in some African countries, Bloomberg reports.
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US tariffs on India grew to 50% after US President Donald Trump imposed a 25% penalty for the country’s purchases of Russian oil and weapons. In 2023, India exported more than $20bn (Rs1.76trn) of textiles, jewellery and diamonds to the US. According to Bloomberg, the volume of trade is expected to drop dramatically, in some cases by up to 90%.
A shift to manufacturing in Africa for Indian exporters would not happen overnight. Exporters have also underlined that any shift is contingent on the tariffs staying high, which is a possibility given the whirlwind nature with which they have been imposed and retracted since April.