India-Saudi Arabia Poised for New Textile Deal: Impact of Quality and Investment on Both Nations

MoU to Double India-Saudi Textile Trade in Final Stages, Focus Now on Quality and Investment.

India Saudi Textile Deal: India and Saudi Arabia may soon sign a deal to double textile trade (India Saudi Textile). Officials from both countries are working to finalise this deal. Saudi Arabia wants to import more high-quality fabrics and garments from India. Sources from the Ministry of Textiles have indicated that this MoU is in its final stages. It discusses reducing tariffs, partnerships on special products, and various forms of cooperation. India is currently Saudi Arabia's second-largest textile supplier. In 2024, India exported $517.5 million worth of fabrics to Saudi Arabia, accounting for 11.2% of Saudi's total imports. Last year, Saudi Arabia purchased $6.27 billion worth of fabrics and garments from around the world, including 65% garments, 15% fabric, 8% carpets, and 6% finished goods. China holds the top position with a 46% share, but Saudi Arabia aims to increase India's share.

Both Countries Aim to Increase Trade by 20-25%

Sources suggest that both countries are striving to increase trade by 20-25% collectively. The MoU will involve specific collaborations, including fashion shows, exhibitions, and trade fairs. A significant delegation from Saudi Arabia is expected to participate in India's tax events. Saudi Arabia has a high regard for the quality of Indian textiles. Officials stated, "Discussions are progressing very rapidly."

Emphasis on Environmentally Friendly Products

Both parties are focusing on tariff concessions, product-specific partnerships, and collaborative programmes. Saudi Arabia is interested in investing in India's ready-made garments sector and is exploring opportunities in handlooms, handicrafts, and carpets. Both nations have placed a strong emphasis on sustainability, or environmentally friendly products.

Saudi Arabia's Petrochemical Hub Status Offers Significant Advantages

A high-level delegation, led by Saudi Arabia's Deputy Minister of Industry and Mineral Resources, H.E. Eng. Khalid Al-Salem, arrived in Delhi on Wednesday. They met with India's Secretary of Textiles at Udyog Bhawan. The meeting focused on deepening cooperation in Man-Made Fibre (MMF) and technical textiles. India is rapidly advancing in these areas, while Saudi Arabia, with its status as a petrochemical hub, can offer substantial benefits.

Fashion, Technology, and Investment to Elevate the Textile Sector

This agreement is poised to lay the foundation for a long-term partnership, extending beyond mere trade. Saudi Arabia seeks to reduce its reliance on China by increasing imports from India. India, in turn, will gain a strong market presence in the Middle East. Both nations aim to propel the textile sector to new heights through fashion, technology, and investment. If this deal materialises, the Indian textile industry will receive a significant boost, potentially creating thousands of new jobs. Indian brands may open stores in Saudi Arabia, and Saudi investment could lead to the establishment of new factories in India. Together, both countries will present a formidable challenge in the global market.

Boost for 'Make in India'

There is a wave of excitement within the Indian textile industry, with traders hailing the deal as a game-changer. The hashtag #IndiaSaudiTextileDeal is trending on social media, with many expressing that it will promote the 'Make in India' initiative. Indians residing in Saudi Arabia have lauded the development as a new example of friendship.

Indian Designers to Showcase at Fashion Shows in Saudi Arabia

Ultimately, this deal will foster not only trade but also cultural exchange. Indian designers will participate in fashion shows in Saudi Arabia, and there will be an infusion of Indian aesthetics into the abayas designed for Saudi women. Environmentally friendly fabrics will become a shared priority for both nations. (ANI)