Recent movements in Mexico
According to the report from the Embassy in Mexico, Grupo Olam, a leading group in food, agribusiness and food ingredients, is seeking to install its production plant in the country and the Sakthi group is investing in the auto parts sector in Durango.
Hero Motocorp, India’s largest two-wheeler manufacturer, also announced its plan to start operations in Mexico after entering into a distribution agreement with Grupo Salinas in January 2021.
The Oyo hotel chain entered the Mexico market in 2019 and continues to increase its operations.
Also, recently, Flex Americas, a subsidiary of UFLEX Ltd., announced the expansion of its operations with an investment of 100 million dollars in Altamira.
The Indian company UPL Ltd also announced an investment of 11 million dollars in a new Research and Development Center and a manufacturing plant in Saltillo.
Zoho corp, an IT company, opened its first office in Mexico in February 2024. The Tata group, under the name Titan X, opened a manufacturing plant for auto refrigeration parts in April 2024.
Nuevo León becomes relevant
The state of Uttar Pradesh, India, and Nuevo León signed a memorandum of understanding for cooperation in the commercial, tourism, pharmaceutical and health sectors during Governor Samuel García’s visit to India in August 2023.
Garcia attended the ninth India-LAC Conclave organized by the Confederation of Indian Industry along with a delegation, where he delivered a keynote address.
The governor’s visit was relevant to attract Indian companies to one of the most important automotive hubs in Mexico, as Vimecarti Viney, an Indian electric vehicle company, announced the opening of its first plant in the state of Nueva León in Mexico, with an investment of 200 million dollars.
Indian IT giants such as HCLTech, Infosys and TCS also announced new investments in the state of Nuevo León during the visit.
“Today we are becoming a global electromobility hub, we have surpassed all economic records, we already have 25,000 million dollars, and now add what we are going to bring from India,” was García’s statement before the tour of the India.
Bilateral trade, Mexico contributes more to India
In 2022, bilateral trade between India and Mexico broke a record, reaching a value of 11.4 billion dollars.
But in 2023 it fell to $10.6 billion, mainly due to the drop in crude oil exports from Mexico, according to information from the Indian Embassy.
The trade balance in favor of India has remained for nine consecutive years.
India’s total exports to Mexico during 2023 reached an all-time high of $8.04 billion.
In recent years, India has recorded impressive growth in the automotive sector and its components, particularly in the four-wheeler category.
India is the fifth largest supplier of automobiles and vehicles to Mexico, after the United States, China, Japan and Brazil.
Mexico is still India’s third most important trading partner in the Americas after the United States and Brazil.
India remains Mexico’s tenth largest trading partner worldwide.
Despite the numbers, the Embassy highlights that Mexico, being one of the main economies in Latin America, is one of the countries that is the focus of attention for Indians. The true potential of the bilateral trade and economic relationship has yet to be tapped.
Add Comment