Wednesday, October 04, 2017

India’s exports to Mexico continue its steady increase

India’s exports to Mexico have increased by 17 percent to 2.84 billion dollars in the period January-July 2017 from 2.43 billion in the same period in 2016. 

The main drivers of this steady increase are the engineering products. Vehicle (mostly cars) exports have gone up by 23.5% in 2017 reaching 1.15 billion dollars from 929 million in 2016.  In fact, the vehicle exports have doubled from 2015. 
Export of other engineering products ( equipments, machinery, products of iron, steel and aluminium) have also showed an impressive jump of 21.7% reaching 689 million dollars in 2017 from 566 m in 2016.
Mexico has overtaken Brazil as the largest destination of India’s exports to Latin America in the last two years. 
Mexico’s exports to India have almost doubled from 743 million dollars in 2016 to 1.35 billion dollars in 2017. Crude oil is the main export accounting for 69% of the exports.
The total trade of India with Mexico has reached 4.19 billion dollars in 2017 (Jan-July) from 3.17 billion in the same period in 2016.
Despite Trump’s NAFTA threats, Mexico’s economy has been growing and has attracted new investments. Mexico’s global imports and exports have shown increase in 2017. 
The Trump factor has made Mexico to focus more on diversification of its trade partnership. As part of this strategy, Mexico is keen to engage India, which is its tenth largest export market and 12th ranked global import source.
Indian companies continue to invest in Mexico. The latest investor is Indian autoparts company Sakthi which has set up a plant in Durango in Mexico to make suspension and break systems. The initial investment is 30 million dollars.
Mexican companies are upbeat about India's growth story and continue to invest in India.