India, Mexico sign terms of reference to kickstart trade pact negotiations

India and Mexico signed the Terms of Reference for negotiations on a Preferential Trade Agreement (PTA) on Wednesday to kickstart the establishment of a framework, scope, modalities and roadmap for negotiations aimed at creating new economic opportunities for both partner nations.The signing formally launches negotiations for a mutually beneficial and balanced PTA, with the potential to expand bilateral trade, create business opportunities, enhance investment flows and contribute to resilient and diversified supply chains, according to the Ministry of Commerce & Industry.The proposed PTA seeks to leverage the complementarities between the two economies and expand opportunities for Mexican products and businesses in the Indian market.Live EventsUS border enforcement has undergone a major transformation under American President Donald Trump as the administration has restricted access to asylum procedures, deployed troops and increased pressure on Mexico to limit northbound migration.

Mexico's trade negotiations with India come amid Trump's crack down on the U.S.-Mexico border movement.In a statement published on Wednesday, the Commerce ministry highlighted that Mexico is an important market for Indian exporters and investors due to its strong linkages to global value chains.Automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing are among the key sectors which hold significant potential for cooperation.The Mexican delegation also discussed various aspects of the bilateral economic agenda with the Indian counterpart, identifying opportunities to deepen trade and investment relations, strengthen cooperation and foster closer ties between the productive sectors of both countries.The commencement of trade pact negotiations follows the understanding reached between Prime Minister Narendra Modi and President Dr.

Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025. The two leaders had agreed to further strengthen and deepen the India-Mexico partnership.(You can now subscribe to our Economic Times WhatsApp channel)