India-Mexico Launch Preferential Trade Agreement Talks, Eye Stronger Investment And Market Access

India and Mexico have formally initiated negotiations for a Preferential Trade Agreement (PTA) after signing the Terms of Reference (ToR), marking a step towards expanding bilateral trade and investment.

India's Commerce Secretary Rajesh Agrawal and Mexico's Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano signed the document during Agrawal's official visit to Mexico.

The framework outlines the scope, procedures and roadmap for negotiations.

The proposed agreement will address market access for goods, rules of origin, customs procedures, trade facilitation and dispute settlement.

Negotiations will also cover sanitary and phytosanitary measures, technical trade barriers and trade remedies.

India's Department of Commerce said both countries were seeking a balanced agreement to increase trade, encourage investment and develop diversified supply chains.

The initiative follows discussions between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum during the G7 Summit in Canada in June 2025.

Both leaders had agreed to deepen bilateral economic cooperation.

During the latest discussions, Gutiérrez Romano represented Mexico's Secretary of Economy Marcelo Ebrard Casaubon.

The two delegations explored opportunities to strengthen commercial engagement.

Bilateral Trade Reaches $8.74 Billion

India considers Mexico an important export and investment destination because of its integration with global value chains.

Priority sectors include automobiles, chemicals, electronics, pharmaceuticals, agricultural products, energy, critical minerals, medical devices and advanced manufacturing.

Both countries also discussed organising a Mexican business delegation to India during the first quarter of 2027 to facilitate business meetings and identify investment opportunities.

According to the Directorate General of Commercial Intelligence and Statistics (DGCI&S), bilateral merchandise trade reached $8.74 billion in 2024.

India's exports totalled $5.73 billion, while imports stood at $3.01 billion, resulting in a trade surplus of $2.72 billion.

Major Indian exports included light vehicles worth $880 million, motorcycles worth $390 million, base metals worth $760 million and automobile components worth $740 million.