India Seeks Limited Trade Pact with Mexico to Mitigate High Tariffs

India has initiated discussions with Mexico to explore a limited trade agreement as a faster route to protect Indian exporters from proposed tariff hikes by the Mexican government, as per news reports.  

The move comes amid concerns that higher import duties could hurt key Indian export segments. 

Key Development 

The commerce ministry said on December 15 that India is pursuing a Preferential Trade Agreement (PTA) with Mexico instead of a full-fledged free trade agreement, which would take significantly longer to negotiate. 

“The quicker way is to get a Preferential Trade Agreement because a free trade agreement will take longer. So, we have started discussions with Mexico on this,” Commerce Secretary Rajesh Agarwal said. The proposal follows Mexico’s decision to move ahead with higher import duties on a wide range of products sourced from India and other Asian economies. 

Tariff Decision and Trade Exposure 

On December 11, the Mexican Senate approved a plan to raise import tariffs of up to 50% on more than 1,400 goods imported from countries that do not have trade agreements with Mexico.  

These include India, China and several other Asian economies. According to the commerce ministry, Indian exports worth around $2 billion to Mexico could be impacted if the tariff increases are implemented. Automobiles, two wheelers, auto components and textiles are among the sectors expected to face the most pressure. 

Read More: Mexico to Slap Up to 50% Tariffs on India and Other Asian Nations Imports from 2026! 

Conclusion 

India’s push for a limited trade pact reflects an effort to safeguard exports and maintain market access amid rising protectionist measures, while avoiding the longer timelines associated with a comprehensive trade agreement. 

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