India and Mexico have taken a significant step towards strengthening bilateral economic and trade ties by signing the Terms of Reference (ToR) for negotiations on a Preferential Trade Agreement (PTA). The framework outlines the scope, modalities and roadmap for negotiations aimed at creating new economic opportunities for both countries.
The agreement formally initiates discussions on a mutually beneficial and balanced PTA, which is expected to support bilateral trade expansion, create business opportunities, boost investment flows and strengthen resilient and diversified supply chains.
The initiative 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. Both leaders had agreed to deepen and strengthen the India-Mexico partnership.
During the visit of Commerce Secretary Rajesh Agrawal, the two delegations discussed bilateral relations and opportunities to enhance trade and investment. The discussions involved Mexico’s Undersecretary of Foreign Trade, Luis Rosendo Guti‚rrez Romano, who represented Secretary of Economy Marcelo Ebrard Casaubon.
The Terms of Reference cover key areas of negotiation, including market access for goods, rules of origin, customs procedures and trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade and trade remedies.
The proposed agreement aims to leverage complementarities between the two economies and expand market opportunities for Mexican products and businesses in India. Given Mexico’s integration into global value chains, the country also represents an important market for Indian exporters and investors.
Key sectors identified for potential cooperation include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing, among others.
The delegations also reviewed various aspects of the bilateral economic agenda, identifying opportunities to deepen trade and investment relations, strengthen cooperation and foster closer engagement between businesses and productive sectors in both countries.
Additionally, both sides discussed the possibility of organising a Mexican business mission to India during the first quarter of 2027. The proposed visit is expected to facilitate business-to-business meetings, identify commercial opportunities and strengthen business ties between the two countries.