India and Mexico have signed Terms of Reference (ToR) to launch negotiations for a Preferential Trade Agreement (PTA), the Ministry of Commerce and Industry announced on 28 October 2026. The ministry said the talks aim at “a mutually beneficial and balanced agreement” covering goods market access, rules of origin and trade facilitation.
Commerce Secretary Rajesh Agrawal made a two-day visit to Mexico City, where he took part in the launch alongside Luis Rosendo Gutiérrez Romano, Mexico’s Undersecretary of Foreign Trade, who represented Economy Secretary Marcelo Ebrard Casaubon. The initiative follows an understanding between Prime Minister Narendra Modi and President Claudia Sheinbaum at the G7 Summit in Canada in June 2025.
What Will the India-Mexico Preferential Trade Agreement Cover?
The negotiating areas include 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. Sectors identified for cooperation are automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
How Big Is India-Mexico Trade Today?
According to figures cited by Upstox, bilateral trade fell by more than 9% to $7.83 billion in FY2025-26. India’s exports were $5.72 billion and imports $2.1 billion, which implies an Indian surplus of roughly $3.6 billion on those numbers. No tariff rates for the proposed PTA have been disclosed.
What Do Officials Say About Other Trade Talks?
Commerce and Industry Minister Piyush Goyal has said talks with Chile are at an advanced stage and with Canada are progressing well. On South African Customs Union (SACU) talks he said: “We have just started SACU negotiations, so it may take some time.” Negotiations with the GCC and Israel are moving slowly amid the West Asia crisis.
Market and Trade Reaction
No statements from exporter bodies such as FIEO or from Mexican industry groups were found in the coverage reviewed, and no market reaction was reported. A PTA, unlike a full free trade agreement, typically covers a limited list of products, though the product lists for this deal have not been published.
What Happens Next?
Both sides discussed a possible Mexican business mission to India in the first quarter of 2027 to facilitate business-to-business meetings. Negotiating rounds and a target date for concluding the PTA have not been announced.
Frequently Asked Questions
What did India and Mexico sign?
They signed Terms of Reference that formally launch negotiations for a Preferential Trade Agreement.
How much trade do India and Mexico have?
Bilateral trade was $7.83 billion in FY2025-26, down by more than 9%, with Indian exports at $5.72 billion and imports at $2.1 billion.
Which sectors could benefit?
Automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
Sources: Ministry of Commerce and Industry via PIB (28 Oct 2026), The Tribune (28 Oct 2026), Upstox (28 Oct 2026).
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