With 64 international airports, 63 border crossings, 68 ports for domestic traffic, hassle-free procedures and FTAs with 45 countries, which give privileged access to 1.2 billion consumers, Mexico is a reliable and attractive destination for investment, according to Ms Melba Pria, Ambassador of Mexico to India.
“Mexico is one of the largest, sophisticated and open economies in the world. It is also an example of macroeconomic stability. The country is full of young, talented and highly-skilled people. All I can say Mexico is an easy and exciting place to do business in,” Ms Pria told industry leaders said during a Luncheon Session organised by CII Eastern Region.
“We are committed to free trade. We are a leader in advanced manufacturing and the next global logistics high value added hub. Here get a world within a country,” she said, adding that we are the 6th supplier to the American aerospace industry, 3rd largest IT exporter in the world, a leading flat television screen exporter in the world and 8th producer and 4th exporter globally of new light vehicles in the world.
Mexico’s exports were worth 397 billions in exports in 2014 – 50% of which in medium and high-tech manufactures. “It is the largest exporter of two-door refrigerators with freezer. “We are also the 4th auto parts exporter, 5th exporter of computers, 10th largest exporter of cellphones and a key exporter of medical devices in Latin America,” she said, adding that Mexico is the largest Latin American investor in India.
In her view, the current slump in oil prices may tilt trade balance between the two countries to India’s favour. The fall in global oil prices has presented India with an opportunity to increase its oil trade with Mexico, said.
Mr Sumit Mazumder, President, CII, said this is an opportune time to harness each other’s complimentary capabilities and derive reciprocal benefits, and highlighted three areas opportunities where India and Mexico can further deepen the economic engagement between India and Mexico:
· Make in India: Mexico can be a great partner in manufacturing in India. With the new government rapidly simplifying the bureaucratic procedures, instituting long-overdue market reforms and implementing fair, effective, and transparent processes to attract foreign investments, Mexican companies can seek to invest in sectors such as automobiles & auto parts, textiles & garments, chemicals and pharmaceuticals, gems & jewellery among others.
· Energy: There is a huge potential for India and Mexico to collaborate in the energy sector especially in the area of oil and gas exploration.
· IT and ITeS: Given India’s prowess in the IT and ITeS space, the two countries can seek to step up their collaboration in this sector to cater to not only the Mexican market but also to other markets within the LAC region.
RAdm A K Verma (Retd), Chairman, CII Eastern Region, sought to put a historical context, saying Sonora, a Mexican wheat variety, was instrumental in India’s Green Revolution. “Mexico's main exports to India include petroleum, machinery, fertilizers and chemicals, India exports to Mexico include textiles, gems, jewellery, leather and software. Most major Indian IT companies, several pharmaceutical companies, and engineering companies in tyres, packaging, and electrical equipment have a growing Indian presence in Mexico, whereas Mexican investments in India are in multiplexes, housing & infrastructure, auto parts, cement, and food processing,” he said.
Ms Pallavi Kaul, Chairperson, CII West Bengal State Council, said Mexico’s said Mining & Minerals, Agribusiness, Pharmaceuticals, IT-BPO, Energy, Textiles are among the areas where Eastern Region Indian companies can invest in Mexico.
India's trade with Mexico is around US$ 8 billion. India is the eighth largest export destination of Mexico today. Though the economic engagement is on an upward trajectory it is well below potential.
While Indian companies such as Tata Consultancy Services, Infosys, Wipro, Uflex, Aditya Birla Group, Aptech have invested around $1.51 billion between January 2003 and July 2015, few Mexican companies, namely Homex & Cinepolis, have ventured into Indian market. “This is not commensurate with the size and potential of our respective economies,” the CII President said.
KOLKATA,
September 17, 2015