India and Saudi Arabia are on the verge of finalising a landmark agreement to double their bilateral textile trade, with officials indicating that Riyadh is keen to increase imports of India’s high-quality fabrics. This development is expected to significantly boost India’s textile exports to Saudi Arabia, solidifying its position as a key player in the region’s textile market.
## Bilateral Textile Trade Agreement
The proposed pact, which is in its final stages, involves duty reductions and several other proposals currently under negotiation, according to sources in the Textile Ministry. India’s textile industry is poised to benefit greatly from this agreement, as Saudi Arabia is looking to diversify its textile imports and reduce its dependence on a single supplier. With India’s textile sector being one of the largest in the world, the country is well-positioned to meet Saudi Arabia’s growing demands for high-quality fabrics.
### Duty Reductions and Collaborative Programmes
Both sides are exploring ways to raise India’s share in Saudi Arabia’s textile market through collaborative programmes, duty reductions, and product-specific partnerships. The Memorandum of Understanding (MoU) is expected to facilitate a deeper collaboration between the two countries, with plans for joint initiatives such as fashion shows, exhibitions, and separate fairs. A Saudi delegation is also scheduled to attend Bharat Tex, a prominent textile exhibition in India, further highlighting the growing cooperation between the two nations.
## Growing Demand for Indian Textiles
In 2024, Saudi Arabia imported USD 6.27 billion worth of textiles and apparel from across the world, with significant imports including apparel (65%), fabrics (15%), carpets (8%), and made-ups (6%), 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% share. However, Saudi Arabia is keen to increase its trade share with India due to the country’s high-quality fabric production.
### Opportunities for Investment and Cooperation
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 to advance cooperation in the sector. The meeting explored Saudi investments in India’s ready-made garment sector and opportunities in handloom, handicrafts, and carpets, with both sides stressing sustainability. The potential for deeper collaboration in man-made fibre (MMF) and technical textiles was also highlighted, as India is expanding rapidly in these areas and Saudi Arabia has an advantage as a petrochemical hub.
## Key Takeaways and Future Prospects
The impending bilateral textile trade agreement between India and Saudi Arabia is expected to have a significant impact on the textile industry in both countries. With India’s high-quality fabric production and Saudi Arabia’s growing demand for textiles, the stage is set for a mutually beneficial partnership. As the negotiations near completion, industry stakeholders are eagerly awaiting the finalisation of the agreement, which is expected to boost India’s textile exports to Saudi Arabia and strengthen the economic ties between the two nations.
In conclusion, the proposed agreement to double bilateral textile trade between India and Saudi Arabia marks a significant milestone in the economic cooperation between the two countries. As the pact nears finalisation, it is expected to unlock new opportunities for Indian textile exporters and strengthen the trade relationship between India and Saudi Arabia. With the potential for duty reductions, collaborative programmes, and investments in the textile sector, this development is poised to have a positive impact on the industry. As the agreement is finalised and implemented, it will be interesting to see how it shapes the future of the textile trade between India and Saudi Arabia.
