India has proposed a preferential trade agreement (PTA) with Mexico to shield exporters from steep import tariffs of 5-50% on over 1,450 product lines, effective January 1, 2026, targeting non-FTA nations like India to bolster local industries against Chinese dominance. Key developments include Mexico’s Senate approval in early December 2025, India’s embassy raising concerns on September 30, a virtual ministerial meeting on December 2, and technical talks starting December 12, led by Commerce Secretary Rajesh Agrawal. Impacting $5.7 billion in FY25 exports—particularly automobiles (India’s third-largest market), auto parts, textiles, plastics, steel, and footwear—with a $2.8 billion surplus at risk, the move threatens supply chain disruptions. From India’s strategic lens, a swift PTA de-risks trade amid USMCA shifts, counters China’s Latin American inroads, and secures export competitiveness without WTO violations.