India and Mexico have officially begun negotiations for a Preferential Trade Agreement (PTA), opening a new chapter in their economic relationship. The process follows the signing of the Terms of Reference, which outlines the negotiations’ framework, scope, procedures, and roadmap. According to India’s Ministry of Commerce and Industry, the proposed agreement aims to increase bilateral trade, encourage investment, generate commercial opportunities, and develop more diversified and resilient supply chains.
The initiative builds on an understanding reached between Indian Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025. Both leaders had expressed an interest in expanding cooperation between their countries.
During Commerce Secretary Rajesh Agrawal’s visit, Indian and Mexican representatives discussed ways to strengthen economic ties and identify opportunities for greater trade and investment. Mexico was represented by Luis Rosendo Gutiérrez Romano, Undersecretary of Foreign Trade, on behalf of Economy Secretary Marcelo Ebrard Casaubon.
The proposed agreement will address several important trade-related areas, including market access for goods, rules of origin, customs procedures, trade facilitation, dispute resolution, sanitary and phytosanitary standards, technical barriers, and trade remedies. These negotiations are intended to capitalize on the complementary strengths of both economies and improve opportunities for exporters and businesses.
Potential areas for deeper collaboration include automobiles, chemicals, electronics, pharmaceuticals, agricultural and food products, energy, critical minerals, medical devices, and advanced manufacturing. Officials also explored closer cooperation between industries in both countries.
Additionally, the two sides discussed the possibility of organizing a Mexican business delegation to India during the first quarter of 2027. The proposed visit would facilitate business-to-business meetings, help companies identify commercial opportunities, and encourage stronger investment and trade connections. The negotiations represent a step toward building a broader and more diversified India-Mexico economic partnership.
