India, Mexico Explore Expanded Trade and Tech Partnership

India has launched high-level talks with Mexico aimed at deepening trade and boosting investment in science and technology—highlighting both countries’ burgeoning interest in nearshoring initiatives.

According to the Indian government’s Press Information Bureau, Prime Minister Narendra Modi met Mexico’s President Claudia Sheinbaum on the sidelines of the G7 summit in Kananaskis, Canada. Modi “underscored that the two countries should explore collaboration in the fields of semiconductors, AI, Quantum and critical minerals,” and they discussed leveraging Mexico’s nearshoring potential to strengthen manufacturing and pharmaceutical supply chains.

The ministry highlighted mutual aims to expand cooperation across trade, investment, start-ups, innovation, science and technology, and particularly in the automotive sector — with a view to increasing people-to-people ties.

They also acknowledged ongoing joint efforts by think tanks, and emphasized cultural and tourism exchanges.

Bilateral trade between India and Mexico reached $8.6 billion in 2023.

India, already the world’s largest exporter of medicines to the U.S., is reportedly exploring Mexico as a nearshore manufacturing base for pharmaceuticals to cut costs and reduce lead times.

Modi’s discussions also included India sourcing critical minerals and rare-earth elements from Mexico — essential for electronics supply chains — and plans to ramp up collaboration on semiconductors, AI and quantum technologies.

Growing Indian auto investment in Mexico, including by Maruti Suzuki, reflects another strategic move. Mexico’s access to the USMCA market makes it an attractive location for Indian companies to set up plants targeting the North American market.

Meanwhile, the launch of platforms such as India–Mexico Connect — backed by Moglix and Credlix—facilitates industrial supply sourcing and digital trade financing. These tools aim to narrow Mexico’s $11 billion trade gap with India and position Indian suppliers as viable alternatives to Chinese imports.