Indian Exporters Turn to Africa Amid US Tariffs
US tariffs have sent shockwaves through Indian exports, with a 50% penalty on goods taking effect on 27 August. This has led companies to explore new manufacturing bases in Africa to maintain access to the US market.
The US move, sparked by India's purchase of Russian oil and weapons, has forced Indian exporters to reconsider their strategies. Dharmanandan Diamonds, a Mumbai-based manufacturer, is eyeing Botswana for increased production. Meanwhile, garment suppliers like Gokaldas Exports and Raymond Lifestyle are expanding their African footprint to circumvent the tariffs. Gokaldas already has operations in Kenya and Ethiopia, while Raymond plans to shift some production to its Ethiopian plant.
The shift is not without challenges. While Africa offers lower tariffs and established manufacturing infrastructures, a sudden redirection of exports may not happen overnight. Moreover, the specific African countries Indian exporters might target remain unclear, as no public information is currently available.
The US tariffs, imposed by President Donald Trump, have opened a new chapter in global trade dynamics. Indian companies are adapting, with Africa emerging as a key alternative to the US market. However, the full extent and impact of these changes remain to be seen.
