India and Mexico have started formal talks for a Preferential Trade Agreement (PTA). Both countries have signed the terms of negotiations. The proposed agreement may provide new business opportunities in automobile, pharma, electronics, agriculture and chemical sectors.
Business News: Amid discussions of a possible trade deal with America, India has taken steps towards increasing trade with Mexico. Both countries have signed the Terms of Reference to begin negotiations on a Preferential Trade Agreement (PTA). This initiative taken on October 28 is expected to open new opportunities for Indian companies in the Mexican market. However, the final trade agreement has not been reached yet. Both countries will negotiate on import duties, market access and trade related rules.
What was decided regarding trade between India and Mexico?
India and Mexico are now preparing to increase trade with each other. For this, talks have taken place between the officials of both the countries. It was decided in the meeting what things would be included in the trade agreement and how further discussions would take place. This is called Terms of Reference (ToR).
According to the Ministry of Commerce and Industry, both the countries are working on Preferential Trade Agreement (PTA). Under this agreement, import duty on some goods can be reduced. This means that some products going from India to Mexico may get tax exemption. Similarly, relief can also be given on goods coming to India from Mexico.
However, it has not been decided yet on which items the tax will be reduced. At present the method of talks has been decided between the two countries. Only after agreeing on the terms of the agreement will it be known how much discount will be available on which goods.
Business of vehicles, medicines and agricultural goods may increase
Special attention is being given to the trade of vehicles, medicines, electronic goods, agricultural products and chemicals between India and Mexico. Both countries are exploring possibilities of increasing buying and selling in these areas. There is a big industry of making vehicles in Mexico. There are factories of many foreign companies there. Many companies manufacturing vehicle parts operate in India also. In such a situation, Indian companies may get new opportunities to sell their goods in Mexico.
This agreement is also considered important for pharmaceutical companies. Medicines made in India are already sent to many countries. If trade terms become easier with Mexico, it could help Indian pharmaceutical companies expand their business there. New avenues may also open for companies manufacturing medical equipment.
Apart from this, there will also be discussion on trade of mobiles and other electronic goods, agricultural products and food items. Along with the chemical industry, both the countries are also looking at the possibilities of working together on electricity, fuel and essential minerals used in industries.
There will be talk on simplifying the rules for sending goods abroad
Traders sending goods from India to Mexico have to follow many rules. One has to go through the process of baggage checking, customs papers and other necessary documents. Officials of both the countries will also discuss ways to make these tasks easier. The meeting also included the issue of whether a product would be considered made in India or Mexico. There are separate rules for this, which are called Rules of Origin. These rules will also play an important role in the trade agreement.
There will also be discussions on health and safety rules for farming and food items. Apart from this, if any dispute arises during business, efforts will also be made to reach a consensus on how it will be resolved.
If both the countries agree on these things, then businessmen may face less problems in sending and ordering goods. However, what exactly will change in the rules will become clear only after the agreement.
There was also a conversation between Modi and the President of Mexico
The issue of increasing trade between India and Mexico is not new. Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum met during the G-7 summit held in Canada in June 2025. At that time both the leaders had discussed strengthening trade and economic relations. Now further talks in this direction have taken place during the visit of India’s Commerce Secretary Rajesh Aggarwal to Mexico. On behalf of Mexico, Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano attended the meeting.
The officials discussed providing opportunities to companies from both countries to work with each other. Apart from this, there was also talk of increasing investment and increasing cooperation in the work ranging from manufacturing of goods to its supply.
Mexican businessmen can come to India in 2027
India and Mexico want the companies of both the countries to come in direct contact with each other. In view of this, a group of businessmen from Mexico may come to India in the first three months of 2027. During this tour, Mexican businessmen will be able to meet Indian companies and discuss business possibilities. They will get information about what kind of goods are in demand in India and in which areas we can work together. Indian businessmen will also get an opportunity to increase contacts with Mexican companies.