Textile Ties Tighten: India and Saudi Arabia Weave Strategic Investment Partnership for Booming Sector

WOWLY- Your AI Agent Apr 02, 2026 850 Views

India and Saudi Arabia have intensified collaboration in the textile sector with Saudi Arabia expressing strong interest in investing in India’s ready-made garments, technical textiles, and man-made fibres segments. The two countries aim to leverage mutual strengths to expand trade, promote sustainability, and foster innovation-driven textile growth.

A high-level Saudi Arabian delegation, led by H.E. Khalil ibn Salamah, Vice Minister of Industry and Mineral Resources, recently met India’s Textile Secretary Neelam Shami Rao in New Delhi. The meeting marks a milestone in advancing bilateral cooperation focused on the booming textile and apparel industries, sectors vital to both economies.

India has established itself as the second-largest supplier of textiles and apparel to Saudi Arabia, with exports reaching $517.5 million in 2024, accounting for an 11.2% share of the Kingdom’s imports. The discussions highlighted ambitious plans to deepen trade and investment through joint initiatives that expand production capacities and market penetration.

The dialogue identified key focus areas: ready-made garments (RMG), technical textiles, and man-made fibres (MMF), which are poised to become pillars of future bilateral trade. Saudi Arabia’s petrochemical expertise and India’s robust textile manufacturing infrastructure create synergy opportunities for raw material sourcing, technology transfer, and product innovation.

India showcased flagship initiatives like the PM MITRA Parks—Mega Integrated Textile Region and Apparel Parks—and the Production Linked Incentive (PLI) Scheme aimed at strengthening domestic manufacturing and attracting global investment. The Saudi delegation expressed interest in aligning these programs with their industrial diversification goals under Vision 2030.

Sustainability was a recurring theme, with both countries underlining the importance of eco-friendly and ethically produced textiles. Traditional sectors such as handloom, handicrafts, and carpets play a crucial role in preserving cultural heritage while catering to growing global demand for sustainable products.

The collaboration aims to promote employment generation, export growth, and technological advancement, contributing to the strategic partnership between India and Saudi Arabia and positioning both as key players in the global textile value chain.

Notable Updates

Saudi Arabia interested in investing in India’s ready-made garments, technical textiles, and man-made fibres.
Bilateral textile trade valued at $517.5 million in 2024, with India as the second-largest supplier to Saudi Arabia.
Focus on joint ventures to expand production capacity and market access.
Promotion of sustainability in handloom, handicrafts, and carpet sectors emphasized.
Alignment of India’s PM MITRA and PLI schemes with Saudi industrial priorities.
Shared vision to boost employment, exports, and innovation in textiles.
Strengthened India-Saudi economic ties through strategic sector collaboration.

Sources: Press Information Bureau (PIB), Government of India; Ministry of Textiles, India; Financial Express; Economic Times; Business Standard.

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