New Delhi: India and Mexico have formally launched negotiations for a preferential trade agreement (PTA), signing the terms of reference that define the scope and framework for talks aimed at expanding bilateral trade and investment, according to a press statement from the commerce ministry.
The move is part of India’s broader efforts to forge bilateral trade deals to bolster exports at a time when geopolitical conflicts have forced a realignment of global supply chains.
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’s exports to Mexico were $5.73 billion, down 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 important categories included auto components, , engineering goods and chemicals. accounted for about three-fourths of Mexico’s shipments to India.
The terms of reference 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 commerce ministry said.
The proposed agreement aims to create new business opportunities, enhance investment flows and strengthen supply chains by leveraging complementarities between the two economies.
The initiative follows an understanding 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.
During a visit to Mexico by commerce secretary Rajesh Agrawal, Indian and Mexican officials met to discuss expanding trade and investment. Agrawal held talks with Mexico’s undersecretary of foreign trade Luis Rosendo Gutiérrez Romano, who represented economy secretary Marcelo Ebrard Casaubon.
Mexico is an important market for and investors because of its links to global value chains. Sectors identified for potential cooperation include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
The two sides also discussed the possibility of organising a Mexican business mission 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 businesses in the two countries.
The negotiations mark a step towards a broader economic partnership, with both sides seeking to expand market opportunities and strengthen commercial engagement.
