The Indian government highlighted 27 Indian companies in Mexico, whose investments give them access to sell products and services in the Americas.
Overall, Indian companies consider Mexico as an important investment destination with access to the USMCA region and Latin America.
With dynamic growth leading its local economy, the most populous in the world, Indian companies have internationalized primarily in the pharmaceutical, automotive, telecommunications and technology sectors.
Indian companies in Mexico
The India Fund believes that India‘s economy is in the early stages of a cyclical recovery: it is one of the fastest growing countries in the world, supported by a resilient domestic macroeconomic environment and favorable government policy with sufficient fiscal discipline.
According to this investment fund’s view of India, inflation is under control, the real estate sector is experiencing a strong rebound and there is a public sector capital spending push around infrastructure development and manufacturing to support growth, create more jobs and ultimately stimulate private capital spending.
Several Indian companies have already invested in Mexico in recent years to take advantage of the nearshoring phenomenon.
From the point of view of the Embassy of India in Mexico, the top three areas of return for Indian investments in Mexico are information technology, pharmaceuticals and automotive sectors.
Most of the major Indian information technology (IT) and information and communication technology (ICT) companies, such as TCS, HCL, Infosys, Tech Mahindra, NIIT, Aptech, Hexaware, Wipro, BirlaSoft, Zoho, among others, have a presence in Mexico. In addition, several Indian pharmaceutical companies, such as Lupin, Dr. Reddy’s Laboratories, Zydus, Claris, Life Sciences, Hetero Drugs, Sun Pharma and Solara, have also made investments and are operating in the country. This demonstrates the growing interest of Indian companies in the Mexican market.
Success stories
In the automotive industry, Motherson Technical Precision Mexico operates 15 plants in the country. Hero Motocorp, India’s largest two-wheeler manufacturer, has also announced plans to start operations in Mexico. This decision was finalized after signing a distribution agreement with Grupo Salinas in January 2021. These strategic moves reflect the growing interest and expansion of Indian companies in the Mexican automotive market.
Automotive industry
Oyo Rooms entered the Mexican market in 2019 and has continued to successfully expand its operations. Recently, Flex Americas, a subsidiary of UFLEX Ltd. announced a $100 million investment to expand its operations in northern Mexico. On the other hand, India’s UPL Ltd. has also unveiled an investment of US$11 million for the construction of a new Research and Development Center as well as a manufacturing plant in Saltillo, Mexico.
On the technology front, Zoho Corp, a leading Indian IT company, opened its first office in Mexico in February 2024. This move marks an important milestone in its international expansion. Furthermore, the Tata Group, under the Titan X brand, inaugurated an automotive refrigeration parts manufacturing plant in Mexico in April 2024.
Overall, Indian investments in Mexico have far exceeded Mexican investments in India. As of March 2024, Indian investments in Mexico reached approximately US$4 billion. Currently, more than 200 Indian companies are operating in Mexico. This highlights the growing Indian business presence in the country.