India and Saudi Arabia are nearing the conclusion of a major Memorandum of Understanding (MoU) aimed at doubling bilateral trade in textiles and apparel.

Officials from India’s Ministry of Textiles confirmed that the agreement is in its final stages, with negotiations focused on duty concessions, collaborative manufacturing programmes, and product-specific partnerships.

The pact is expected to deepen trade integration across apparel, fabrics, and technical textiles.

According to ministry sources, both sides are working to push India’s export share in Saudi Arabia’s textile market beyond the current 11.2 per cent. Riyadh, which imports over 6.27 billion USD worth of textiles annually, sourced 517.5 million USD from India in 2024—making India its second-largest supplier after China.

The upcoming MoU seeks to expand this share by an additional 20–25 percentage points through market access facilitation and promotional alliances.

Senior officials revealed that the collaboration will include institutional linkages through exhibitions, joint fairs, and participation in flagship events such as Bharat Tex. A Saudi delegation led by Vice Minister of Industry and Mineral Resources Khalil ibn Salamah recently met with India’s Textile Secretary at Udyog Bhawan, New Delhi, to fine-tune the framework for cooperation.

The visiting team also explored potential investments in India’s ready-made garment, handloom, and handicrafts sectors.

The proposed partnership aligns with Saudi Arabia’s Vision 2030 objectives to diversify non-oil imports and strengthen domestic textile capacities. Indian officials underscored that the Kingdom’s preference for Indian fabrics stems from their high quality and competitive pricing. Discussions are reportedly “progressing very fast” as both governments aim to formalise the deal within the next quarter.

A core focus of the planned cooperation is the expansion of trade in man-made fibre (MMF) and technical textiles. India, a rising force in these fast-growing segments, views Saudi Arabia as a strategic partner due to its petrochemical base, which provides essential raw materials for synthetic fibre production. Sector experts note that joint ventures in this field could significantly boost value-chain integration and manufacturing efficiency on both sides.

Beyond trade, the pact is expected to create opportunities in design innovation, sustainable production methods, and workforce skill development.

Both sides have emphasised sustainability in textile production, including the adoption of eco-friendly fibres and resource-efficient manufacturing processes. The partnership will also support small and medium enterprises (SMEs) and strengthen supply-chain resilience across the Gulf and South Asia.

Government officials indicate that once formalised, the MoU could serve as a model for India’s future bilateral engagements in niche industrial sectors, combining trade liberalisation with technology collaboration.

With this agreement, India and Saudi Arabia aim to reframe their textile partnership into a long-term strategic relationship that supports growth, sustainability, and regional industrial integration.

Based On ANI Report