Mexico

• Basic Information
• Overview of the Market
• India - Mexico Business
• Trade and Industry Contacts

website of Indian Embassy http://www.indembassy.org

Basic Information

• Map : http://worldatlas.com/webimage/countrys/namerica/mx.htm
• Capital: Mexico City
• International Airports: Mexico City, Cancun, Monterrey, Guadalajara
• Seaports: TampicoVeracruzAcapulcoMazatlánAltamira, Coatzacoalcos, Ensenada, Guaymas, La Paz, Lázaro Cárdenas, Manzanillo, Progreso, Salina Cruz, Topolobampo, Tuxpan.
• Language: Spanish
• Electric Current: 110/220 Voltage
• Main Exports: petroleum, silver,copper, zinc,lead,manganese,fruits and vegetables,cocoa, coffee,sugar,cotton,textiles, footwear,automobiles, autoparts and equipments and machinery.
• Main Cities: Guadalajara , Monterrey , Veracruz , Tijuana , Cancun
• Mexican Culture, an Overview: Presentation by Sanjiv Ghai MBA student of IIFT and his supervisor Ravi Kumar.

Overview of the Market

• Population : 107 million
• GDP : 1.1 trillion dollars (2008)
• Currency : peso

• Mexico is the second largest economy, in terms of GDP and population in Latin America.
• Mexico is the Latin American giant in foreign trade, accounting for almost 40 per cent of the total trade of the region.

• After having gone through various crises, Mexico's economy has now stabilised and is healthy with strong fundamentals.

• Inflation and primary lending rates are in single-digit. The Government has been following fiscal discipline and has kept current account deficit below 2 per cent.

• Mexico is a member of the Organisation for Economic Cooperation and Development (OECD). That means its investment practices and business regulations are generally the same as those of the developed OECD countries.

• Mexico is an energy-surplus country; it is one of the largest producers and exporters of crude oil. Mexico produces 3.25 million bpd (barrels per day) and is among the top four oil exporters to the US. Mexico also has rich deposits of gold, silver, copper, iron and zinc.

• Manufactured products account for 89 per cent of total exports, petroleum 8 per cent and agro-products 2.4 per cent. This makes Mexico different from the rest of Latin American countries, which mainly export raw materials and commodities. Mexico exports more than one million vehicles annually. It is the main maker of television sets in North America with an annual production of 25 million units. It is a major supplier of textiles to the US.

• After Canada, Mexico was the largest trading partner of the US until China replaced it in 2006. US accounts for 91 per cent of Mexico's exports and 62 per cent of its imports.

• Mexico is a member of NAFTA , which includes USA and Canada.

• 30% of GDP of mexico is dependent on USA through exports and remittances. There are 12 million Mexicans in USA sending back 23 billion dollars a year.

• Mexico has signed the maximum number of free trade agreements (FTAs). It has FTAs with 33 countries and has preferential market access to 850 million consumers, including European Union, Latin American countries, Israel, Korea and Japan.
• There are a number of assembly units, called as maquilladoras,in the border with USA. Taking advantage of the NAFTA, these units assemble products for exports to USA.

Business with India

Bilateral Trade (US $ million)

Economical Bilateral Relation India in Mexico

Indian Investment in Mexico

Mexico has received the largest investment from India. The total investment is 3 billion dollars.

A Bilateral Investment Promotion and Protection Agreement was signed on 21 May 2007.

Mittal group has a steel plant and is acquiring two more from Villacero for 1.6 billion dollars in 2007.

TCS wins $200million dollar deal in Mexico

Infosys sets up IT operations in Monterry, Mexico

Infosys announced on 22 August 2007, the creation of its first Latin American subsidiary, and the opening of the development center and office for the region based in Monterrey, Mexico.
The subsidiary, Infosys Technologies S. De RL De CV, provides the company’s full range of business consulting and information technology services for clients in all industries including banking, financial services, retail, consumer packaged goods, resource, energy and utilities.

The Monterrey facility provides Infosys with the dedicated resources to service clients in North America, Latin America and Europe with bi-lingual talent.

Infosys Technologies Limited today opened the company’s second Latin American Development Center in Monterrey, Mexico, offering global, near-shore, and Latin American clients a full range of information technology (I.T.) services including Business and I.T. Consulting, Business Process Outsourcing (BPO), Packaged Solutions Implementation and Infrastructure Management.

"From our first development center opening with a few clients and a dozen employees, we now have some 30 clients and 330 professionals and the future looks muy brillante," said Ashok Vemuri, Senior Vice President and member of Executive Council, Infosys Technologies. "Our public-private partnership with the city of Monterrey and the government of Nuevo Leon, Mexico demonstrates that such unions create opportunities for the city’s very talented new graduates from local universities. And it clearly creates tremendous value for clients around the world who increasingly look to our centers in Latin America for the solutions they need."

WIPRO enters Mexico

During the visit of President of Mexico on 11 September 2007, WIPRO announced it would start a Global Delivery Centre in Mexico, with about 100 professionals.

Patni Computer Systems Opens New IT Delivery Center in Queretaro, Mexico on 12 March 2010

Vijai electricals of Hyderabad setting up transformer plant in Mexico

Vijai Electricals is now putting up a Green Field Project for the manufacture of Energy Efficient Amorphous Metal Distribution Transformers (AMDTs) in Mexico.  About 8.7 hectares of Land has been given by H E Ismael Hernandez Deras, Governor of the State of Durango in Gomez Palacio City in a ceremony organized by him on April 12, 2007 at Durango.  The construction of the Plant started on 31st August, 2007 and is proposed to be completed by April, 2008.  The production would also commence around the same time.  This Plant would cater to the needs of Mexico, US and Canada at full capacity the plant’s revenues would cross US $ 100 Mn/annum

Sasken sets up tech support centre in Mexico

Sasken communication Technologies Ltd has set up this centre in Monterry with 100 engineers for support their north American customers in the area of embedded system software. Dr Reddy Labs invest 59 million US$ in Mexico

Dr Reddy Labs invest 59 million dollars

Dr Reddys have aquired in 2006 the Mexico unit of Roche in the API business involving manufacture and sale. The unit employs 340 people and is FDA approved. This will generate annual business of 100 million dollars.

Hexaware Technologies entry into Mexico

TCS opens Global Technological development centre in Mexico

This was inagurated on 29 May at Gudalajara by the President of Mexico. TCS has invested 10 million $ to start with. They will employ 2000 Mexicans.

Aditya Birla Group setting up a Carbon Black plant in Mexico

This will be the first venture of the Birla group in Latin America. This greenfield plant will have a capacity of 50000 tons per year. part of the production will be exported to North America

UFLEX India commissioned its polyester films manufacturing plant in 2009 in Altamira in the State of Tamaulipas, under the name Flex Americas. 

Gruma Group of Mexico interested in investment in india

The CEO of the group Roberto Gonsalez visited India in the second week of October 2005 and showed interest in investment of 200 million dollars to start with in food processing such as ready-made Chappatis, snacks and tortillas. This is the third largest mexican group with turnover of over 3 billion dollars with operations in China, Australia, Europe, USA and Latin America besides Mexico

Contact Juan Gonzalez, President of the group

phone : 972-232-5207

fax: 972-232-5807

Trade and Industry Contacts