India and Mexico Forge Stronger Economic Ties with New Trade Agreement
Strengthening Economic Relations
File image of Commerce secretary of India, Rajesh Agarwal and Mr Luis Rosendo Gutiérrez Romano, Mexico’s Undersecretary of Foreign Trade(Photo: @DoC_GoI/X)
New Delhi, Oct 28: On Wednesday, the Indian government announced a significant advancement in its economic collaboration with Mexico by signing the Terms of Reference (ToR) for a Preferential Trade Agreement (PTA).
Commerce Secretary Rajesh Agrawal and Luis Rosendo Gutierrez Romano, Mexico’s Undersecretary of Foreign Trade, officially initiated the trade discussions.
According to a statement from the Department of Commerce on X, the goal is to enhance trade, stimulate investment, fortify supply chains, and create new business opportunities for both nations.
The two countries aim to transform their untapped potential into real economic benefits through balanced and mutually advantageous negotiations.
This proposed trade agreement is set to include major Indian exports such as automobiles, textiles, footwear, plastics, steel, chemicals, and toys, which currently face tariffs as high as 50% under Mexico’s new tariff structure.
Official trade statistics indicate that India’s merchandise exports to Mexico reached $1.73 billion in the fiscal year 2025-26, with automobiles making up the largest portion at $1.92 billion.
During his two-day official visit to Mexico City, the Commerce Secretary engaged in productive discussions with Fernando Gonzalez Saiffe, Director General for Asia-Pacific at the Secretaria de Relaciones Exteriores (SRE), focusing on enhancing India-Mexico relations and exploring mutual cooperation.
He acknowledged Mexico’s strong interest in enhancing political exchanges and reiterated India’s commitment to shared growth and prosperity.
Agrawal emphasized the strong synergies between the two economies, noting India’s impressive growth rate of approximately 7% and the significant untapped potential for trade, investment, and business collaborations. The PTA is seen as a pathway to unlock new economic cooperation opportunities and strengthen business connections across the Pacific.
Additionally, the Commerce Secretary met with business leaders from both India and Mexico to discuss opportunities, tackle challenges, and deepen trade and investment relations.