India and Mexico Strengthen Ties in Construction Trade

On Feb. 12, the Embassy of India in Mexico City, in collaboration with the IndMex Council, Mexican Chamber of Construction Industry (CMIC), and National Association of Importers and Exporters of Mexico (ANIERM), organized the Vibrant Buildcon Roadshow. The event aimed to foster stronger business connections in the construction and building materials sector between India and Mexico, while also commemorating the 75th anniversary of diplomatic and economic ties between the two nations.

During his speech, His Excellency, Ambassador Dr. Pankaj Sharma, highlighted the deep-rooted ties between the two nations. “We celebrate 75 years of diplomatic relations. A journey characterized by mutual respect, shared aspirations, and collaborative road. Over the past seven and a half decades, India and Mexico have cultivated a partnership that transcends geographical distances and cultural diversities."

Economic collaboration has played a crucial role in this partnership, with India and Mexico witnessing remarkable trade growth in recent years, making India Mexico’s ninth-largest trading partner with a total trade volume of US$10.6 billion in 2023. Ambassador Sharma emphasized India's strategic investment in Mexico, noting that over 200 Indian companies have invested around US$4 billion in the country. In 2024 alone, Indian firms invested a record US$500 million in Mexico.

India’s total exports to Mexico reached an all-time high of US$8.04 billion in 2023, marking a 6.5% increase from the previous year. In addition to automotive and auto parts, high-demand Indian exports to Mexico include telephone sets and transmission equipment, electrical motors and equipment, chemicals and ceramic tiles.

Expanding Collaboration in the Construction Sector

The construction and building materials industry presents a promising area for enhanced cooperation between India and Mexico. “The construction industry is pivotal for both our nations, driving economic growth, infrastructure development, and urbanization. However, both India and Mexico are yet to forge a close collaboration to make the most of the construction and building materials sector,” Ambassador Sharma remarked.

Jagdish Nainwal, President, Trade & Commerce Council of India and Mexico (INDMEX), stressed that India’s construction market, valued at US$1.4 trillion and growing at 12.6% annually, could share its economies of scale, efficiency, and expertise with Mexico. “In India, the total construction market is valued at US$1.4 trillion. This translates to efficiency, cost-effectiveness, and expertise. There is an opportunity to share this economy of scale with Mexico to offer quality and competitive prices.”

Nainwal further noted the similarities in the construction growth sectors of both countries, particularly in government projects and industrial park development. “The growth of construction in India and Mexico is driven by major government infrastructure projects, such as the Mayan Train, and the expansion of industrial parks,” he added.

A key area of trade within this sector is ceramics. In 2020, Mexico imported ceramic products worth approximately US$127 million from India. The Morbi cluster in Gujarat has emerged as a global hub for ceramic production, known for high-quality, cost-competitive products. The industry has experienced a 39.6% export growth year-on-year, shared Ambassador Sharma.

Despite the robust trade relationship, challenges such as regulatory barriers and trade facilitation mechanisms must be addressed. Ambassador Sharma emphasized that continuous dialogue and policy alignment are essential for further strengthening economic ties. Additionally, the global shift toward sustainable development presents new opportunities for collaboration in renewable energy, eco-friendly infrastructure, and green building materials.

Investment Trends and Opportunities

According to the Ministry of External Affairs of the Government of India, Mexico remains India's third-largest trade partner in the Americas after the United States and Brazil. In 2023, bilateral trade reached US$10.6 billion, with India exporting US$8.04 billion worth of goods to Mexico and importing US$2.55 billion.

Luis Rafael Méndez, President, CMIC, emphasized the mutual benefits of collaboration, stating, “Mexico and India share a history of growth and resilience, as well as a vision for sustainable development and modernization in our industries.”

Vandit Chitalia, Senior Director, Chemical and Allied Export Promotion Council (CAPEXIL), pointed out the notable increase in India’s exports to Mexico in the construction and material sectors, including a 93.45% rise in ceramics and a 37.82% growth in cement products. “Here you can see the scope and the potential of bilateral trade and to advance the business interest between India and Mexico because it's a huge building and construction materials market,” he said.

Gerardo Tajonar, President, ANIERM, also underscored the ongoing opportunities linked to nearshoring. “Mexico continues to be a great opportunity for investment growth and the expansion of the construction sector.” 

The event served as a platform to promote the upcoming Vibrant Buildcon 2025, the largest building material expo in India, set to take place on April 13-16 at the Yashobhoomi Convention Center in New Delhi, India. This event will showcase advancements in sustainable materials, cutting-edge technology, and architectural solutions, further strengthening business relations between Indian and Mexican enterprises.