India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA), marking an important step towards strengthening economic ties, expanding bilateral trade and encouraging investment between the two countries.
The negotiations began with the signing of the Terms of Reference, which establish the framework, scope and roadmap for discussions.
According to the Ministry of Commerce and Industry, the Terms of Reference outline the modalities and key areas that will guide the proposed agreement.
The initiative aims to create new business opportunities, increase investment flows, expand bilateral trade and develop more resilient and diversified supply chains.
The move follows an understanding reached between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025.
The proposed PTA will focus on several important aspects of international trade, including:
- Market access for goods
- Rules of origin
- Customs procedures and trade facilitation
- Dispute settlement
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Trade remedies
These areas are expected to provide a structured basis for improving trade cooperation and addressing challenges faced by businesses and exporters.
The two countries aim to use the complementary strengths of their economies to expand commercial opportunities.
According to the ministry, sectors with significant potential include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
Commerce Secretary Rajesh Agrawal held discussions with the Mexican delegation during his visit. Mexico was represented by Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano on behalf of Economy Secretary Marcelo Ebrard Casaubon.
Both sides also discussed strengthening cooperation between their productive sectors.
They explored the possibility of organising a Mexican business mission to India in the first quarter of 2027. The proposed visit could facilitate business-to-business meetings, help identify commercial opportunities and encourage stronger connections between companies in both countries.
