India and Mexico begin talks on Preferential Trade Agreement

New Delhi: India and Mexico have formally opened negotiations on a Preferential Trade Agreement (PTA) and signed terms that define the scope and framework for talks aimed at expanding bilateral trade and investment, a commerce ministry press release said.

The move is part of India’s broader efforts to forge bilateral trade deals to boost exports at a time when geopolitical conflicts have forced a realignment of global supply chains.

Bilateral merchandise trade between the two countries stood at around $7.83 billion in FY26, with India posting a trade surplus of around $3.62 billion. India’s exports to Mexico were $5.73 billion, down 0.38% from a year earlier, 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 approximately $1.92 billion. Other important categories included auto components, pharmaceuticals, engineering goods and chemicals. Crude oil accounted for about three-quarters of Mexico’s supplies to India.

The terms of reference include 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 trade opportunities, boost investment flows and strengthen supply chains by leveraging complementarities between the two economies.

The initiative follows an agreement 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.

Expanding trade ties

During Commerce Minister Rajesh Agrawal’s visit to Mexico, Indian and Mexican officials met to discuss expanding trade and investment. Agrawal held talks with Mexican Foreign Trade Undersecretary Luis Rosendo Gutiérrez Roman, who represented Economy Minister Marcelo Ebrard Casaubon.

Mexico is an important market for Indian exporters and investors because of its connectivity to global value chains. Industries identified for potential collaboration include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.

The two sides also discussed the possibility of organizing a Mexican trade mission to India in the first quarter of 2027. The proposed visit would facilitate business-to-business negotiations and help identify commonbusiness opportunities and strengthen ties between businesses in both countries.

The talks mark a step towards a broader economic partnership, with both sides seeking to expand market opportunities and strengthen trade engagement.