India Experiences Its Own Nearshoring, But Also Wants to Join Mexico’s

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In recent years, some Indian companies have arrived or expanded their presence in Mexico. This is no coincidence, as businesses from that country see Mexico as an important investment destination with access to the USMCA and Latin America.

A Reuters study in association with Maersk points out that India, along with Vietnam, leads the most popular post-COVID-19 pandemic near-sourcing, nearshoring, and reshoring locations globally, with 21% of the preferences of surveyed supply chain professionals. Mexico ranks seventh, with 9%.

Global X ETFs, a New York-based exchange-traded funds provider, notes that as China’s export dominance wanes, a huge opportunity opens up for other emerging market countries to fill the void, with India and Mexico standing out.

BlackRock also includes India among the top three countries most benefited by nearshoring, along with Mexico.

India is not only playing at home by taking advantage of the relocation of companies primarily leaving China, but it also wants to be a guest on Mexico’s field.

Presence of Indian Companies in Mexico

Several Indian companies have already invested in Mexico in recent years to take advantage of the nearshoring phenomenon,” acknowledges the Embassy of India in its document on trade relations between the two nations.

According to the Embassy of India in Mexico, the three areas of greatest performance for Indian investments in the country are the information technology, pharmaceutical, and automotive sectors.

Their data indicates that Indian investments in Mexico, as of March 2024, are around 4 billion dollars, with the presence of more than 200 companies.

Although the Embassy counts those 4 billion dollars of Indian investment in Mexico, the Foreign Direct Investment registered by the Ministry of Economy amounts to only 292.3 million dollars between 2006 and the first quarter of 2024.

Almost all major Indian IT and ICT companies have operations in Mexico, such as TCS, HCL, Infosys, Tech Mahindra, NIIT, Aptech, Hexaware, Cognizant, Wipro, BirlaSoft, and Zoho.

Within the pharmaceutical sector, companies like Lupin, Dr. Reddy’s Laboratories, Zydus, Claris, Life Sciences, Hetero Drugs, Sun Pharma, and Solara stand out.

In the food processing sector, Parle-G is present, with its only manufacturing plant in all of America.

Source: Expansion