India-Mexico bilateral trade to double by 2010

India-Mexico bilateral trade to double by 2010

New Delhi: Trade between India and Mexico is expected to double in next three years from the existing figure of $1.8 billion (Rs 7200 crore) in 2006, said Felipe Calderon Hinojosa, President of Mexico at a meeting on “India-Mexico: Opportunities for Business ", organized jointly by CII, Assocham and Ficci.

He said Mexico can offer to Indian companies, preferential access to 1 bllion customers through trade agreements with 44 countries including the US. Also present at the interaction were Kamal Nath, union minister of commerce and industry, Government of India, Eduardo Sojo, minister of economy, Mexico, Rajkumar Dhoot, member of parliament and senior managing committee member, Assocham and Subodh Bhargava, past president, CII.

Clear advantages

* Pro- Mexico (Investment Promotion Organization of Mexico) to open special office in Mumbai by early 2008 to promote bi-lateral trade and facilitate trade enquiries.

* Mexico and India fast growing economies but bilateral trade represents only 2.6% of Asia-Mexico trade. Untapped opportunities exist and Indian investors can gain by setting up manufacturing base in Mexico.

* Mexico’s policies are directed towards economic stability, public safety and increasing competitiveness, making the country a natural platform for investment by 2012.

* Mexico invites private sector investment in infrastructure sector.

* According to Goldman Sachs report, India and Mexico will be 3rd and 5th largest economies of the world respectively.

* Emergence of EU, ASEAN and NAFTA have created a new economic architecture where Mexico and India can contribute a lot more to each other’s growth.

* Both countries have high manufacturing capacities, abundant natural resources and highly skilled human resources in service sector. Both countries should focus on education and development of youth. Also cooperate in areas of automobile, aerospace and electronics, IT, bio-technology and pharmaceuticals.

Investments made by Indian companies in Mexico are around $3 billion with a potential of manifold growth in the years ahead/