📊Executive Summary

India is proposing a preferential trade agreement (PTA) with Mexico to counteract steep import tariffs imposed by Mexico on a wide range of goods, including electronics. The tariffs, which can reach up to 50%, affect Indian exports worth approximately USD 2 billion, particularly in sectors such as automobiles, auto parts, and electronics. This move aims to protect Indian exporters and maintain competitiveness in the face of increased costs. The PTA is seen as a quicker alternative to a full free trade agreement, which would take longer to negotiate. The situation underscores the importance of monitoring tariff changes and their impact on supply chains, especially for sectors heavily reliant on exports to Mexico....