India is exploring the possibility of a preferential trade agreement (PTA) with Mexico as part of its efforts to counter the impact of high tariffs imposed on select Indian exports. The proposed move is aimed at improving market access and strengthening bilateral trade ties between the two countries.

Key Highlights

• India proposes a preferential trade agreement with Mexico to mitigate impact of higher tariffs.
• Deal aims to boost export competitiveness and strengthen bilateral trade across key sectors.

According to officials, the proposed trade arrangement would allow both nations to offer reduced tariffs on specific goods, making Indian exports more competitive in the Mexican market. Sectors such as pharmaceuticals, auto components, textiles, chemicals, and engineering goods are expected to benefit if the agreement moves forward. Mexico, in turn, could gain improved access to the Indian market for products where it holds a comparative advantage.

The initiative comes amid rising trade barriers globally and follows Mexico’s recent tariff measures that have increased costs for Indian exporters. By pursuing a preferential deal rather than a full-fledged free trade agreement, India aims to adopt a more targeted and faster approach to trade liberalisation while safeguarding sensitive domestic sectors.

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Trade experts believe such an agreement could help diversify India’s export destinations and reduce dependence on traditional markets. Mexico’s strategic location and access to North American supply chains further enhance its importance as a trade partner.

While discussions are still at an exploratory stage, the proposal reflects India’s broader strategy of using flexible trade frameworks to protect export competitiveness and expand its global trade footprint amid evolving geopolitical and economic challenges.