India and Mexico have formally launched negotiations for a preferential trade agreement.
Bilateral merchandise trade stood at around $7.83 billion in FY26, with India recording a surplus of approximately $3.62 billion.
The two countries are exploring cooperation in automobiles, pharmaceuticals, electronics, chemicals, critical minerals and other sectors.
India and Mexico have formally launched negotiations for a preferential trade agreement (PTA), signing the terms of reference that set out the scope and framework for discussions aimed at expanding bilateral trade and investment. The move comes as India steps up efforts to secure trade agreements and diversify export markets amid geopolitical tensions and shifts in global supply chains, according to a Commerce Ministry statement.
Bilateral merchandise trade between the two countries stood at around $7.83 billion in FY26, with India recording a trade surplus of approximately $3.62 billion. The proposed agreement aims to improve market access, create business opportunities and strengthen supply chains by building on complementarities between the two economies.
Automobiles Lead India’s Exports To Mexico
India’s exports to Mexico stood at $5.73 billion in FY26, a decline of 0.38% from the previous year, while imports fell 26.59% to $2.11 billion, according to official Indian trade data.
Automobiles were India’s largest export category to Mexico, accounting for around $1.92 billion. Other key exports included auto components, pharmaceuticals, engineering goods and chemicals. Crude oil accounted for approximately three-fourths of Mexico’s shipments to India.
The terms of reference signed by the two countries cover market access for goods, rules of origin, customs procedures and trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade, and trade remedies.
The proposed PTA is intended to expand commercial opportunities, encourage investment flows and improve supply-chain links between the two countries. The negotiations follow an understanding reached between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum on the sidelines of the G7 Summit in Canada in June 2025 to deepen bilateral ties.
India, Mexico Explore Cooperation Across Key Sectors
During a visit to Mexico by Commerce Secretary Rajesh Agrawal, Indian and Mexican officials held discussions on expanding trade and investment. Agrawal met Mexico’s Undersecretary for Foreign Trade Luis Rosendo Gutiérrez Romano, who represented Economy Secretary Marcelo Ebrard Casaubon.
Mexico is considered an important market for Indian exporters and investors because of its integration with global value chains. The two sides identified automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing as potential areas for cooperation.
Officials also discussed the possibility of organising a Mexican business delegation’s visit to India in the first quarter of 2027. The proposed visit would facilitate business-to-business meetings, help identify commercial opportunities and strengthen ties between companies in the two countries.
The launch of PTA negotiations marks a step towards a broader economic partnership. The outcome will depend on the terms agreed by both sides, including the extent of market access and the trade rules incorporated into the final agreement.
