India-Mexico trade talks are set to formally begin in the week of October 27, 2026, as the countries pursue a preferential agreement covering a limited range of goods. The negotiations follow Mexican tariff increases affecting countries without trade agreements, including India.

India-Mexico trade talks to establish a framework

India’s Commerce Secretary Rajesh Agrawal is in Mexico City for a two-day visit during which the countries plan to sign terms of reference for the negotiations. Agrawal said the visit would also include meetings with the Mexican government and business community.

The proposed preferential trade agreement would offer tariff concessions on selected products rather than cover trade as broadly as a comprehensive free trade agreement. Negotiations have not yet produced an agreement.

Higher duties affect Indian exports

Mexico’s tariff increases took effect on January 1, 2026, with duties ranging from 5% to 50% across 1,463 tariff classifications. Affected sectors include automobiles, textiles, plastics, steel, chemicals and engineering goods. Passenger vehicle import duties have risen to as much as 50%.

India exported $5.73 billion in merchandise to Mexico in 2025–26, including about $1.92 billion in automobiles. Total bilateral merchandise trade was around $7.83 billion.

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