Indian Exports to Mexico

Indian Exports to Mexico: A Rising Trade Story

🚚 Overview

Bilateral goods trade between India and Mexico rose from USD 7.9 billion in FY 2019–20 to over USD 8.4 billion in FY 2023–24, reflecting a compound annual growth rate (CAGR) of 1.6%. While total growth has been modest, the composition of trade has shifted significantly in India’s favor.

Over the last five years:

• 🇮🇳 Indian exports nearly doubled, jumping from USD 3.6 billion to USD 5.3 billion (CAGR of 10.1%).
• 🇲🇽 Mexican exports to India declined slightly, tipping the balance from a -USD 0.7B deficit in 2019–20 to a +USD 2.2B surplus for India in 2023–24.

This turnaround highlights India’s growing relevance as a competitive supplier to the Latin American market, and Mexico’s role as a key gateway.

🔝 Top Export Categories from India to Mexico (FY 2023–24)

1. Vehicles (HS Code 87):

• Export value: ~USD 1.7 billion
• Includes passenger cars, commercial vehicles, and auto components.

2. Machinery and Mechanical Appliances (HS 84):

• Export value: USD 521 million
• Covers a wide range of industrial machines used in manufacturing and energy.

3. Electrical Machinery and Equipment (HS 85):

• Used in electronics, power systems, and communication networks.

4. Organic Chemicals (HS 29):

• Primarily inputs for pharmaceuticals and agrochemicals.

5. Aluminum and Articles Thereof (HS 76):

• Includes semi-finished goods and industrial inputs.

These five categories collectively account for over 70% of India’s exports to Mexico and continue to show strong year-over-year growth.

🌎 Trade Positioning

While Mexico ranks as India’s 31st-largest trading partner, the relationship is strategically significant due to:

• High-value exports such as fully built vehicles and industrial inputs
• A rising trend in energy and technology-sector collaboration

Mexico’s position as a logistics hub for North America, making it an attractive export destination

📈 Future Outlook

India’s export momentum is expected to continue, driven by:

• Expansion of electric vehicle and renewable energy components
• India’s FTAs and investment promotion efforts
• Nearshoring trends shifting Mexican demand from Asia to India

As bilateral trade matures, there is strong potential for diversification into sectors like pharmaceuticals, textiles, specialty chemicals, and digital services.