India, Saudi Arabia Close To Finalising Pact To Double Textile Trade
India and Saudi Arabia are nearing the finalisation of a major agreement aimed at doubling bilateral textile trade, with Riyadh expressing strong interest in increasing imports of high-quality Indian fabrics.
According to senior officials in the Ministry of Textiles, the proposed pact is in its “last leg” of negotiations and includes discussions on duty reductions and expanded collaboration across key segments of the textile value chain. Saudi Arabia’s growing demand for premium textiles and India’s expanding capabilities have created a strong foundation for the upcoming memorandum of understanding (MoU).
In 2024, Saudi Arabia imported US$ 6.27 billion worth of textiles and apparel from global markets, with apparel accounting for 65% of its purchases, followed by fabrics (15%), carpets (8%) and made-ups (6%).
India currently exports US$ 517.5 million worth of textiles to the Kingdom, capturing an 11.2% import share and positioning itself as the second-largest supplier after China, which holds a dominant 46% share. Officials said the upcoming MoU aims to significantly boost India’s share, potentially increasing it by 20-25% points through joint initiatives, product-specific tie-ups and tariff reforms.
As part of the deeper partnership, both nations are exploring collaborative programmes such as fashion shows, exhibitions and curated trade fairs to promote Indian textile excellence in the Saudi market. A high-level Saudi delegation led by Vice Minister of Industry and Mineral Resources, Khalil ibn Salamah, met India’s Textile Secretary at Udyog Bhawan on Wednesday to advance discussions.
The meeting also highlighted opportunities for Saudi investments in India’s ready-made garment sector and explored potential cooperation in handloom, handicrafts and carpets, with sustainability emerging as a shared priority.
The Ministry of Textiles noted that man-made fibre (MMF) and technical textiles will be central to the forthcoming collaboration. India is rapidly expanding its capabilities in both segments, while Saudi Arabia enjoys a strategic advantage as a global petrochemical hub, creating a complementary synergy for joint growth.
With negotiations moving very fast, as per officials, the India–Saudi textile MoU is expected to be formalised soon, marking a significant step forward in strengthening trade ties between the two nations.
