Background on India and Mexico’s Trade Relations
In 2024, Mexico recorded a trade deficit of $7,975 million with India, with exports amounting to $1,001 million and imports totaling $8,976 million, according to data from the World Trade Organization (WTO).
India’s Economic Standing
In 2024, India was the fifth-largest economy globally (nominal GDP) and the most populous nation. According to the World Bank, the services sector accounted for nearly half of India’s GDP in 2023, while agriculture remained the largest employer.
India’s Auto Exports to Mexico
In 2024, India exported automobiles to Mexico worth $1,330 million, making Mexico the third-largest destination for these sales after Saudi Arabia and South Africa. Mexico accounted for 19% of India’s total auto sales, which totaled $6,984 million.
India’s Proposal for a Preferential Trade Agreement
The Indian Secretary of Commerce, Rajesh Agrawal, proposed a preferential trade agreement with Mexico to soften the impact of tariffs that threaten Indian exports worth approximately $2,000 million.
Mexico’s Tariff Reforms
The Mexican Senate approved a decree to reform various customs fractions of the General Law of Imports and Exports Tariffs, establishing tariffs on 1,463 products from countries without trade agreements, including China, South Korea, India, Indonesia, and Brazil.
Key Export-Import Products
- India’s main exports to Mexico include automobiles, auto parts, telephones, raw aluminum, medicines, computers, and motorcycles.
- Mexico’s main exports to India consist of telephones, computers, integrated circuits, engine parts, auto parts, and aluminum scrap.
Key Questions and Answers
- What is the main objective of Mexico’s tariff reforms? The primary goal is not to harm Indian exports, according to Agrawal.
- What measures has the Indian government taken to boost its manufacturing sector? The government of Prime Minister Narendra Modi has implemented market opening measures, such as reducing foreign direct investment (FDI) limits, but also restrictive trade measures like tariff increases.
- How have India and Mexico’s trade relations evolved in 2024? Mexican exports to India grew at an annual interim rate of 5.3%, while Indian exports to Mexico increased by 11.7%.
