New Delhi, October 28: In a significant move to further strengthen their economic ties, India and Mexico have formally commenced negotiations for a Preferential Trade Agreement (PTA). Both nations have signed the Terms of Reference (ToR) for this purpose, paving the way for formal discussions on a trade agreement.
The negotiation process was jointly launched by India’s Commerce Secretary, Rajesh Agrawal, and Mexico’s Deputy Minister for Foreign Trade, Luis Rosendo Gutiérrez Romano. The Department of Commerce stated that the shared objective of both countries is to expand trade, promote investment, strengthen supply chains, and create new opportunities for businesses in both nations.
According to the government, India and Mexico will now work toward transforming their untapped economic potential into tangible business opportunities and prosperity. The proposed agreement will be designed to be balanced, ambitious, and mutually beneficial.
The proposed India-Mexico trade agreement is expected to provide significant advantages to Indian exporters, particularly in sectors such as automobiles, textiles, footwear, plastics, steel, chemicals, and toys. Currently, under Mexico’s existing tariff regime, these products face import duties of up to 50 percent; the potential reduction or elimination of these duties could present a major opportunity for Indian companies.
According to official data, India’s merchandise exports to Mexico in the 2025-26 fiscal year stood at $5.73 billion. The automobile sector was the largest contributor, accounting for $1.92 billion—a figure that underscores the growing potential for trade relations between the two countries. Rajesh Agrawal, who arrived in Mexico City for a two-day official visit, held a meeting with Fernando González Saiffe, Director General for Asia-Pacific Affairs at the Mexican Ministry of Foreign Affairs. During the meeting, both sides discussed ways to strengthen India-Mexico relations, enhance economic cooperation, and explore opportunities to learn from each other’s expertise and achievements.
Agrawal noted that the economies of India and Mexico possess significant complementarities. Pointing to India’s robust economic growth of approximately 7 percent, he highlighted the immense potential that exists for trade, investment, and business partnerships. He stated that the proposed Preferential Trade Agreement (PTA) would open new avenues for economic cooperation, bolster business ties, and play a pivotal role in fostering shared prosperity within the Pacific region.
During his visit, the Commerce Secretary also engaged with representatives from the Indian and Mexican business communities. The discussions focused on opportunities and challenges related to trade and investment, as well as potential future partnerships.
