India, Mexico launch negotiations for preferential trade agreement
Bilateral merchandise trade between the two countries stood at about $7.83 billion in FY26, with India recording a trade surplus of around $3.62 billion.
India and Mexico have commenced negotiations for a preferential trade agreement (PTA), aiming to bolster bilateral trade and investment, according to a commerce ministry press statement. The discussions, which form part of India's strategy to diversify trade amid geopolitical shifts, will explore market access, rules of origin, customs procedures, and other trade aspects.
Bilateral trade in goods reached $7.83 billion in FY26, with India exporting $5.73 billion and importing $2.11 billion. Automobiles, auto components, pharmaceuticals, and chemicals are key export categories for India, while crude oil makes up most of Mexico's exports to India. The proposed PTA seeks to create new business opportunities, boost investment flows, and enhance supply chains by leveraging the economies' synergies.
The talks follow a June 2025 G7 Summit meeting between Indian Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum, where both leaders agreed to deepen bilateral relations. Sectors like automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices, and advanced manufacturing are being explored for cooperation.
The negotiations also explore the possibility of a Mexican business mission to India in Q1 2027. Both countries aim to strengthen commercial engagement and market opportunities through this initiative.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- India, Mexico sign terms of reference to kickstart trade pact negotiations economictimes.indiatimes.com
