India, Saudi Arabia eye doubling textile trade; MoU likely soon

New Delhi [India], November 14 (ANI) India and Saudi Arabia are "close" to finalising an agreement to double the bilateral textile trade, with officials saying Riyadh is looking to scale up imports of India's high-quality fabrics.
The pact is in its final stages, with duty reductions and several other proposals currently under negotiation, sources in the Textile Ministry told ANI.
India is the second-largest supplier (USD 517.5 million) to Saudi Arabia's textile and apparel sector, capturing an 11.2 per cent share of Saudi Arabia's total textile and apparel imports in 2024.
"We are trying to collaborate in such a way that trade goes beyond 20-25 percentage points. Riyadh wants to increase the import share from India. Mou will have a different type of collaboration," sources said.
Both sides are exploring ways to raise India's share through by collaborative programmes, duty reductions and product-specific partnerships.
"The MoU is almost in the last leg, and will be on a larger level with fashion shows, exhibitions and separate fairs. A Saudi delegation will also attend Bharat Tex," sources added.
In 2024, Saudi Arabia imported USD 6.27 billion worth of textiles and apparel from across the world, with significant imports including apparel (65 per cent), fabrics (15 per cent), carpets (8 per cent) and made-ups (6 per cent), according to ITC Trade Map data. India, the second-largest supplier, exported USD 517.5 million worth of textiles to the Kingdom in 2024, while China remains its dominant supplier with a 46 per cent share.
"Saudi Arabia wants to increase its trade share with India because our fabric quality is very good," sources added. When asked about the timeline, the official said discussions are being streamlined "very fast".
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 cooperation in the sector. The meeting also explored Saudi investments in India's ready-made garment sector and opportunities in handloom, handicrafts, and carpets, with both sides stressing sustainability, as per a statement by the Ministry of Textiles..
The ministry highlighted the potential for deeper collaboration in man-made fibre (MMF) and technical textiles, areas where India is expanding rapidly and Saudi Arabia has an advantage as a petrochemical hub. (ANI)