Stories
Canada, Mexico Could Absorb 63% of India's US-Bound Exports, Diversifying Market
M
Moneycontrol•28-09-2026, 16:27
Canada, Mexico Could Absorb 63% of India's US-Bound Exports, Diversifying Market
- •Canada and Mexico could absorb nearly two-thirds, or $58 billion, of India's current exports to the US, offering a significant alternative market.
- •India's overall exports to the US stood at $91.2 billion, making the potential market in Canada and Mexico equivalent to about 63.5% of US-bound exports.
- •India and Canada are negotiating a Comprehensive Economic Partnership Agreement (CEPA), aiming to conclude by the end of 2026.
- •India and Mexico may sign Terms of Reference for a proposed preferential trade agreement (PTA) soon.
- •The opportunity spans both labour-intensive and engineering exports, including precious-metal jewellery, cotton T-shirts, and automobile parts.
Key Questions Answered
Canada and Mexico together have the capacity to absorb nearly 63% of India's exports headed to the United States, which amounts to about $58 billion worth of Indian goods.
India and Canada formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) after signing the Terms of Reference in New Delhi on March 2, during Canadian Prime Minister Mark Carney's visit.
The two countries have set a target to conclude the Comprehensive Economic Partnership Agreement negotiations by the end of 2026.
