India and Mexico have formally begun talks on a preferential trade pact, setting out the framework, scope and roadmap for negotiations across goods and trade rules.

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• India and Mexico formally launched negotiations for a Preferential Trade Agreement, with the Commerce Ministry announcing the move on October 28, 2026.
• The Terms of Reference were signed in Mexico City during a two-day visit by Commerce Secretary Rajesh Agrawal.
• Agrawal signed with Luis Rosendo Gutiérrez Romano, Mexico's Undersecretary of Foreign Trade.
• The Terms of Reference set the framework, scope, modalities and roadmap for negotiating a balanced and mutually beneficial agreement.
• Negotiating areas include market access for goods, rules of origin, customs procedures, trade facilitation and dispute settlement.
• They also cover sanitary and phytosanitary measures, technical barriers to trade and trade remedies.
• Priority sectors include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
• India's merchandise exports to Mexico totalled US$5.73 billion in 2025-26.
• The talks come amid new tariffs imposed by Mexico on imports, which had prompted earlier discussions between the two sides.
• Signing the Terms of Reference does not conclude the agreement or change existing tariffs, and the final scope depends on negotiations.
• A Mexican business mission to India has been proposed for early 2027.