India and Saudi Arabia are reportedly close to finalising an agreement aimed at doubling bilateral textile trade, with officials indicating that Riyadh is seeking to significantly expand its imports of high-quality Indian fabrics.
According to sources in the Ministry of Textiles, the pact has entered its final stages, with duty reductions and several other proposals currently under negotiation. India is already the second-largest supplier to Saudi Arabia’s textile and apparel sector, exporting goods worth US $ 517.5 million in 2024 and holding an 11.2% share of the Kingdom’s total textile and apparel imports.
Sources said the two countries were working towards a collaboration that would raise India’s share by 20–25 percentage points. They noted that Riyadh was keen to increase its import share from India and that the forthcoming memorandum of understanding would involve a broader form of cooperation.
Both sides are discussing a mix of collaborative programmes, tariff concessions and product-specific partnerships to boost India’s presence in the Saudi market. Sources added that the MoU was in its “final leg” and would operate on a larger scale, including fashion shows, exhibitions and dedicated fairs. A Saudi delegation is also expected to attend Bharat Tex.
In 2024, Saudi Arabia imported US $ 6.27 billion worth of textiles and apparel from global suppliers, comprising apparel (65%), fabrics (15%), carpets (8%) and made-ups (6%), according to ITC Trade Map data. India remained the Kingdom’s second-largest supplier, while China retained a dominant 46% share. Officials said Saudi Arabia’s interest in expanding trade with India stemmed from the strong quality of Indian fabrics. Discussions on the agreement are progressing “very fast”, they added.
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. Talks also explored potential Saudi investments in India’s ready-made garment segment, as well as opportunities in handloom, handicrafts and carpets, with both sides emphasising sustainability, according to a statement from the Ministry of Textiles.
The ministry highlighted considerable potential for deeper collaboration in man-made fibre and technical textiles, sectors in which India is expanding rapidly and Saudi Arabia holds a strategic advantage as a petrochemical hub.
