Bajio Targets Automotive, Agriculture IndustriesBy MBN Staff | Thu, 08/05/2021 - 13:11
Following the creation of business platform “MAS México” by the governments of Queretaro, San Luis Potosi, Guanajuato, Aguascalientes and Jalisco, the states have announced plans to capitalize on the automotive and agriculture industries in the region.
The Bajio, a region in central Mexico renowned for its safety, quality of life and attractiveness for companies, has been one of Mexico’s vital extraction and manufacturing axes since the 16th century. Between 2013 and 2018, the Bajio had a 4.4 percent growth rate in GDP, against the 2.4 percent Mexico had as a whole, according to INEGI. However, besides the effects of COVID-19, the Bajio and Jalisco have suffered from rising violence caused by crime and drug cartels, which hurt the business activities in the region. Despite being the most thriving state in the last decade, Guanajuato also became the state with most homicides in 2019 nationwide, according to BBC.
During the launching of the new module “Por Más Hecho en México,” Manuel Alejandro González Martínez, Aguascalientes’ Minister of Economic Development, explained that the alliance wants to exploit the automotive and agricultural industries, which altogether represent 17.6 percent of the region’s GDP. Also, both industries generate annual exports over US$50 million and employ about 600,000 people.
“During the first half of the year, 755,789 cars have been assembled in the nine plants in the region. This means virtually 50 percent of all the cars produced in the country,” González asserted.
The first action to exploit agriculture and automotive industries in the region, explained González, is focused on taking advantage of the digital platform built months ago and utilizing the new module “Por Más Hecho en México.” He invited more companies to join the initiative.
Gustavo Puente Orozco, San Luis Potosi’s Minister of Economic Development, also discussed the impact the Bajio has in Mexican economy. “Between the five states, we hold 25 percent of Mexico’s formal employment, roughly 22-23 percent of the total exports are in these states.”
Regarding agriculture, Puente Orozco assured that “almost 25 percent of the agro-industrial GDP” is also located in those states, and added: “This invites investors to keep standing up for the region and keep growing.”
Ernesto Sánchez Proal, Jalisco’s Minister of Economic Development, highlighted that the platform built by the five governments two months ago is not only useful for networking, but it also works to attract local and foreign investors. According to the Minister and his colleagues, the Bajio-Center-West region recollected US$1.8 billion of foreign direct investment, 15 percent of the national total.