Mexico, India Solidify 75-Year Alliance as Global South Leaders

Building on a 400-year history of exchange and 75 years of formal diplomatic ties, the Mexico-India partnership is defined by a modern focus on fostering innovation and a shared call for multilateralism, with bilateral trade reaching a record US$11.71 billion in 2024.

Interaction between the territories now known as Mexico and India dates back centuries. Between the 17th and 19th centuries, early trade routes were established across the Indian and Pacific oceans, creating foundational commercial and cultural links that continue to be navigated and reinforced today. 

The modern Mexico-India relationship is built on two key historical moments. Following India's independence from the British Empire on Aug. 15, 1947, Mexico became the first Latin American country to recognize its sovereignty. Formal diplomatic relations were then established between the two nations on Aug. 1, 1950. These foundational ties continued to strengthen over the decades, culminating in both countries elevating their relationship to a Privileged Partnership in 2007, which was after elevated to the status of Strategic Partnership during Indian Prime Minister Narendra Modi’s visit to Mexico in 2016. 

The two countries have deepened their collaboration in major multilateral forums like the G20, where they often align on key issues such as global governance, climate change, and sustainable development, reinforcing their shared role as influential voices for the Global South.

Mexico-India Trade Continues to Grow

According to Banxico, India ranks as the ninth destination for Mexican exports, underscoring its growing importance as a trade partner. In 2024, total bilateral trade between the two nations reached a record US$11.71 billion. This figure was composed of US$2.72 billion in Mexican exports to India and US$8.99 billion in imports from India, resulting in a trade deficit of US$6.26 billion in favor of India, according to the Ministry of Economy (SE).

In 2024, Mexico's principal exports to India were telephones and mobile devices, with sales totaling US$242 million. The primary states of origin for these sales were Mexico City, Jalisco, and Nuevo Leon. In the other direction, Mexico's main imports from India in 2024 were motor cars and other passenger vehicles, with purchases valued at US$1.32 billion. The top destinations for these Indian goods within Mexico were Mexico City, the State of Mexico, and Nuevo Leon. 

In 2024, FDI from India into Mexico reached a total of US$72.6 million. This investment was primarily composed of US$58 million in inter-company debts, followed by US$13.9 million in the reinvestment of earnings, and US$744,000 in new equity capital. Geographically, the main recipient states for this FDI were Mexico City, which received US$42.4 million, and the State of Mexico, with US$11.6 million.

In an interview with MBN, Indian Ambassador to Mexico Pankaj Sharma noted that automobiles, information technology (IT), and pharmaceuticals are the sectors where Indian firms have excelled, with companies like HCLTech, Bajaj, and Dr. Reddys having investments in the country. “Mexican companies have reciprocated this investment, with well-known brands like Bimbo, Cinepolis, Kidzania, and Nemak making their mark in India. Mexican investments in India amount to about US$810 million, while Indian investments in Mexico have surged to about US$3 billion,” he added.

India’s Path to High-Income Status

The Republic of India is a federal parliamentary republic located in South Asia, sharing land borders with Pakistan, China, Nepal, Bhutan, Bangladesh, and Myanmar. With an estimated population of 1.45 billion people it disputes the position as the world’s most-populated country with China. Its capital is New Delhi. The official languages of the Union Government are Hindi and English, though 22 other languages are officially recognized at the state level. 

In 2024, India's nominal GDP was approximately US$3.91 trillion, a 6.5% growth rate, ranking it as the fifth-largest economy in the world. The country is one of the fastest growing economies globally, with an average growth rate of 6.3% between 2000 and 2024, and has the ambition to reach high-income status by 2047, its 100th anniversary. However, to achieve such ambition, the country must grow by 7.8% over the next 22 years, according to the World Bank. 

The World Bank notes that for India to achieve high-income status within a generation, a specific scenario requiring progress on four key fronts must be realized. This includes achieving faster and more inclusive growth across all its states and increasing the total investment rate from the current 33.5% of GDP to 40% by 2035. Furthermore, the country would need to increase its overall labor force participation rate from 56.4% to above 65% and accelerate its overall productivity growth.

Deloitte estimates that India will grow between 6.4% and 6.7% in 2025 and 2026, with geopolitical factors being the main challenges. “India’s growth projections in the current fiscal year will likely be tied to broader global trends, including rising geopolitical uncertainties and a delayed synchronous recovery in the West than previously anticipated. Disruptions to global trade and supply chains due to intensifying geopolitical uncertainties will also affect demand for exports,” reads Deloitte report.