India and Mexico, bound by the ties of trade and mutual cooperation, have emerged as key partners in each other’s economic growth. In 2022, the trade between these two nations recorded a remarkable 28 percent growth, reaching an impressive $8,106 million.
This growing trade volume already mirrors pre-pandemic levels and underscores the potential for further growth through initiatives such as mutual trade delegation visits, economic cooperation mechanisms, and high-level meetings, as highlighted by Federico Salas, Ambassador of Mexico to India.
The bilateral relationship between India and Mexico holds great significance, as both countries work diligently to elevate it to a Strategic Partnership. To achieve this, they have jointly explored new avenues for cooperation, focusing on energy security, minerals and metals, and other areas that can enhance trade and investments.
For India, Mexico stands as a vital trading partner, and the two nations have identified promising new areas of collaboration, including defence, emerging technologies, innovations, cyber security, aerospace, and space cooperation. With Mexico’s participation in the Pacific Alliance and India’s role as an observer in the alliance, the potential for enhanced collaboration becomes even more promising.
Mexico’s allure as a preferred investment destination for Indian companies lies in its access to NAFTA and the wider Latin American market. Indian investors have shown a keen interest in sectors such as Pharmaceuticals, Information Technology, and Automotive, thereby contributing to Mexico’s economic growth while also strengthening India’s presence in the region.
Vehicles and auto parts have emerged as the biggest export items from India to Mexico since 2012, positioning India as the second-largest supplier of motorcars and transport vehicles after the United States. Additionally, prominent Indian IT companies, including TCS, Infosys, and Wipro, have established their presence in Mexico, fostering job creation and bolstering the skill sets of local IT students.
The dynamic relationship between India and Mexico exemplifies the potential for countries with shared values and aspirations to collaborate for mutual benefit. Their growing trade and strategic engagements are a testament to the success that can be achieved through nurturing such partnerships.
By fostering economic ties, encouraging investments, and seeking synergy in key sectors, the two nations are charting a path towards a Strategic Partnership that promises to bring prosperity and progress for their citizens and the broader region.
As India gears up for the two day CII-LAC Conclave in the first week of August, Ambassador Federico Salas anticipates meaningful deliberations and outcomes that will further enrich the bilateral cooperation between India and Mexico. With a focus on diverse sectors, the conclave aims to facilitate discussions that will lead to collaborative projects and initiatives, forging stronger ties between the two nations.
Following are excerpts of an exclusive interaction with Financial Express Online:
What is Mexico expecting out of this conclave?
We expect to see the formation of new cross-border partnerships between India and Latin America. Also, as other editions have shown, B2G and B2B meetings around strategic industries are of particular importance for taking the relationship between our regions to a new level.
Which sectors have been identified by both countries to enhance cooperation?
Financing and joint research. An Agreement with CSIR on water resources, lithium, the aerospace sector, biotechnology and vaccines.
IT industry: More than 500 startups in Mexico are dedicated to fintech, e-commerce, aggrotech, health and transport. So there could be significant complementarities between these startups and the IT ecosystem in India.
Promotion of Mexico and India as tourist destinations: We both have sites recognized as wonders of the world (Mexico: Chichén Itzá; India: Taj Mahal. India is the sixth country with the highest number of UNESCO world heritage sites and Mexico the seventh.
How can India and Mexico work together in food and energy security?
As big agri-producers, India and Mexico share a common responsibility to implement agricultural practices that preserve and promote food and energy security. In the G20 framework, under the Indian presidency, the outcome document of the Agriculture Working Group included a climate smart approach for achieving a sustainable agriculture industry. Mexico supports this approach.
What about the pharma sector?
India has been an important supplier of medicines, vaccines and medical devices for the health sector in Mexico. Of the international public tenders that the health sector has published, approximately 40 percent has been allocated to Indian companies.
Agriculture and agro products- how can the two countries work together in this sector?
Both countries are big producers and exporters of relevant agriproducts. There are opportunities for the import of millets and machinery for agro production. On the other hand, Mexican beer, red fruits, avocado and tequila could be present in the local markets of India.
Auto is another sector where the two countries are working together. Any updates?
Several Indian companies have established in the traditional clusters, as well as in the new clusters to produce auto parts in Mexico. With the benefits of the rules of origin that the USMCA provides to the auto industry, more Indian enterprises have shown a greater interest to expand operations in Mexico to have better access to the North American market.