India Economy Thread

Now Mexico imposes 50% tariffs on India. Why the heck?​


India tariffs: The tariff hike, which will come into effect on January 1, 2026, will see duties up to 50% on Indian imports. Experts have called it a bid to appease Trump ahead of the next review of the US-Mexico-Canada trade agreement.

After the US's sky-high 50% tariffs on Indian imports, another country has opened a new front against New Delhi amid the raging global trade war. On Wednesday, Mexico's Senate approved tariffs up to 50% on a wide range of imports from India, China and several other Asian nations, Reuters reported. All of this seemingly to please Trump.

The tariff hike, which will come into effect on January 1, 2026, will see duties up to 50% on goods like autos, auto parts, textiles, plastics and steel from countries that don't have a trade deal with Mexico. This means countries like India, South Korea, China, Thailand, and Indonesia will be impacted.

The move is intended to generate $3.76 billion (about Rs 33,910 crore) in additional revenue next year.

WHY MEXICO IMPOSED TARIFFS?
The development comes at a time when Mexican President Claudia Sheinbaum looks to boost domestic production. However, analysts said the move was seemingly a bid to appease Trump before a review by Washington of the US-Mexico-Canada trade agreement (USMCA). The US is Mexico's largest trading partner.

The fresh tariff move comes after Mexico stepped up levies on Chinese goods earlier this year. However, Trump has continued to raise concerns and has continuously, over the past few months, railed against the Sheinbaum government.

Over the past few weeks, Trump has threatened 50% duties on Mexican steel and aluminium, as well as an extra 25% levy for allegedly failing to stop the flow of the opioid fentanyl into the US.

Earlier this week, Trump issued another tariff warning of 5% to Mexico, accusing it of breaching a 1944 deal that gives American farmers access to water.

HOW MUCH WILL IT IMPACT INDIA?
Mexico's move to slap India with tariffs up to 50% is likely to impact bilateral trade, which hit an all-time high of $11.7 billion in 2024. India ranks as the ninth destination for Mexican exports.

Presently, India has a significant trade surplus with Mexico. According to a report, India's exports to Mexico were around $8.9 billion in 2024 as against imports of $2.8 billion, resulting in a significant trade balance in New Delhi's favour.

In 2024, Mexico's main imports from India were motor cars, auto parts and other passenger vehicles. Now, with Mexico imposing heavy duties on these items, imports may take a hit next year.

www.indiatoday.in

Now Mexico imposes 50% tariffs on India. Why the heck?

India tariffs: The tariff hike, which will come into effect on January 1, 2026, will see duties up to 50% on Indian imports. Experts have called it a bid to appease Trump ahead of the next review of the US-Mexico-Canada trade agreement.
www.indiatoday.in www.indiatoday.in
 
Thinking said:
Can some one explain what WTO even does?
Click to expand...
These organisations work on multi lateral co-operation by states. We are moving from Globalism to Regionalism again.

Post World War 2 "rules based order" is slowly dying.
 
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December 12, 20251:04 PM GMT+8Updated 14 mins ago
  • India to issue Chinese business visas within a month -officials
  • Curbs cost an estimated $15 billion in lost electronics output
  • India reworks China ties amid U.S. tariffs to lure foreign investors
NEW DELHI, Dec 12 (Reuters) - India has cut red tape to speed business visas for Chinese professionals, two officials said, a major step to boost ties between the Asian giants and end chronic delays that cost output worth billions of dollars because of scarce technicians.

As Prime Minister Narendra Modi cautiously rekindles ties with Beijing in the face of punishing U.S. tariffs, the officials said New Delhi dropped a layer of bureaucratic scrutiny and shortened visa approval times to less than a month.

Reuters is the first to report the development.

India had blocked virtually all Chinese visits after the nuclear-armed neighbours clashed on their Himalayan frontier in mid-2020, widening its vetting of business visas beyond the home and foreign ministries.

The issues around securing visas have now been completely resolved, said one of the officials with knowledge of the matter, who both spoke on condition of anonymity.

"We have removed the layer of administrative vetting and are processing the business visas within four weeks," the official added.

India's ministries of external affairs, home and trade, as well as the prime minister's office and the top think tank on policy, did not respond to e-mail requests for comment.

Think tank the Observer Research Foundation estimates the tougher scrutiny led to production losses of $15 billion over four years to Indian electronics makers, which import key machinery from China to make mobile telephones.

Major Chinese electronics companies, such as Xiaomi, struggled to get visas, Reuters reported last year.

Industry executives have said such curbs hit their plans to expand in India, while the solar industry was also hit by shortages of skilled labour.

The removal of red tape comes after Modi visited China this year for the first time in seven years, meeting Chinese President Xi Jinping and discussing ways to improve ties.
 
@r3alist @Dalit @hydrabadi_arab @vasanthm @Vkdindian1 @Thinking @CallSignMaverick

Narrender won't Surrender.

India will keep stealing American jobs.
India will keep conning American MNCs to invest in India.
India will keep importing Russian oil.


India's crude oil imports from Russia are on track to climb to a six-month high in December as the world's third-biggest buyer defies U.S. sanctions on Moscow's oil producers.

Crude arrivals from Russia are expected to rise to 1.85 million barrels per day (bpd) in December, from 1.83 million bpd in November, according to data compiled by commodity analysts Kpler.

India's December imports from Russia are likely to have risen for a third consecutive month and are the highest since June's 2.10 million bpd.

While the South Asian nation's appetite for Russian crude has not been diminished by the U.S. sanctions against top Russian producers Lukoil (LKOH.MM), opens new tab and Rosneft, what has changed is the mix of buyers.
The largest chunk of Russian oil being imported by India in December is being offloaded at Vadinar port, with Kpler estimating arrivals of about 658,000 bpd, up from 561,000 bpd in November and above the average for 2025 of 431,000 bpd.

Vadinar port serves the refinery of the same name, which is owned by Nayara Energy (ESRO.M3), opens new tab, in which Rosneft owns a 49.13% stake.

The refinery is capable of processing 405,000 bpd, meaning that its current level of imports from Russia is well in excess of its capacity.

This in turn suggests that Nayara is storing crude in the hope that the sanctions against Russian oil and refined products are eased, or that enough buyers will be prepared to ignore them.
It's likely that the current rate of imports from Russia to Vadinar cannot be sustained as the refinery will run out of storage space, given that it currently has capacity to hold about 20 million barrels of both crude and products.

RELIANCE CUTS​

While Nayara has ramped up imports from Russia, India's major privately-owned refiner Reliance Industries (RELI.NS), opens new tab has moved in the other direction.

It is on track to import about 293,000 bpd from Russia in December through its port at Sikka on India's west coast, which supplies the 1.24 million bpd Jamnagar refinery complex.

This is down from 552,000 bpd in November and is well below the 826,000 bpd in June, which was the highest this year, according to Kpler data.

Reliance, which has a 500,000 bpd long-term deal with Rosneft, has said it will comply with U.S. and European sanctions, a move viewed as protecting its export flows to Europe and minimising the risk of legal action against the company.

But it increasingly appears that Reliance is the exception among Indian refiners, with state-owned companies accounting for about 904,000 bpd of imports from Russia in December, according to Kpler.
It would seem that the new U.S. sanctions, announced in October, have failed to cut India's imports from Russia, with India likely making the calculation that the discounts on offer are enough to outweigh any political fallout.

China is the only other major buyer of Russian crude, and it also is continuing to import at the same pace it has done for most of the year.

Regards
 
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@Thinking

India is removing key textile bottlenecks: QCOs on 20+ synthetic inputs withdrawn, inverted GST fixed with fibres/yarns at 5%, and labour + trade frictions eased. After years of drag, the sector can finally scale globally.

When you read stuff like this, you wonder why didn't Modi do all of these in 2014 and 2015 itself and wait so long?

Why was the oil sector reforms done in 2024 along with opening up of Andaman Sea not done in 2014/15 itself?
Why was commercial coal mining not allowed in 2015 itself rather than wait till 2019?
Why wasn't 100% FDI allowed in Insurance in 2015 itself?
Why wasn't the PLI scheme started along with Make in India in 2014 itself?
Rare earth-critical minerals scheme? and so many others?

Regards
 
SoulSpokesman said:
@Thinking

India is removing key textile bottlenecks: QCOs on 20+ synthetic inputs withdrawn, inverted GST fixed with fibres/yarns at 5%, and labour + trade frictions eased. After years of drag, the sector can finally scale globally.

When you read stuff like this, you wonder why didn't Modi do all of these in 2014 and 2015 itself and wait so long?

Why was the oil sector reforms done in 2024 along with opening up of Andaman Sea not done in 2014/15 itself?
Why was commercial coal mining not allowed in 2015 itself rather than wait till 2019?
Why wasn't 100% FDI allowed in Insurance in 2015 itself?
Why wasn't the PLI scheme started along with Make in India in 2014 itself?
Rare earth-critical minerals scheme? and so many others?

Regards
Click to expand...

1) Incompetency.
2) Can't do everything on day one.

Indian politicians are always reactionary. PM mitra park were announced more than 6 years ago. Without judicial and babudom reform there is little hope.
 
Key Summary Points

Indian motorcycles dominate African markets over Chinese and American brands, especially in commuter and commercial segments.

Better quality than Chinese bikes: Indian brands (Bajaj, TVS, Hero) are seen as more durable, reliable, and better engineered for rough African roads. Chinese bikes are often cheaper upfront but fail faster.

Lower total cost of ownership: Indian bikes offer good mileage, fewer breakdowns, and affordable spare parts, making them economical for daily use (especially bike taxis like boda boda).

Strong after-sales support: Wide service networks and easy availability of parts give Indian brands a major edge.

Local job creation: Indian companies set up assembly plants, dealerships, service centers, and supply chains, creating local employment instead of only exporting finished bikes.

Skill transfer & ecosystem building: Training of local mechanics, technicians, and sales staff helps build long-term industrial capability.

American bikes not suitable: US motorcycles are expensive, heavy, and impractical for African use cases.

Result: Africans increasingly trust Indian brands for value, quality, and economic contribution, leading to long-term market leadership.
 

Motorcycle Exports by Country​

Below are the 15 countries that exported the highest dollar value worth of motorcycles during 2024.

  1. mainland China: US$14.5 billion (34.3% of total exported motorcycles)
  2. Germany: $3.4 billion (8.1%)
  3. Japan: $3.3 billion (7.8%)
  4. India: $3.2 billion (7.5%)
  5. Thailand: $2.5 billion (5.9%)
  6. Italy: $2.4 billion (5.6%)
  7. Austria: $2.1 billion (4.9%)
  8. Netherlands: $1.7 billion (3.9%)
  9. Indonesia: $1.2 billion (2.8%)
  10. Vietnam: $1.19 billion (2.8%)
  11. Taiwan: $855.7 million (2%)
  12. Belgium: $840.4 million (2%)
  13. United States: $714.8 million (1.7%)
  14. France: $665.4 million (1.6%)
  15. Spain: $544.7 million (1.3%)
By value, the listed 15 countries shipped 92% of globally exported motorcycles in 2024.

Among the top exporters, a pair of leading motorcycles exporters grew since 2023, namely mainland China (up 25.4%) and India (up 20.8%).

Motorcycle Exports 2024

Motorcycle exports by country in 2024 plus a searchable database of 100 major motorcycle exporters
www.worldstopexports.com www.worldstopexports.com
 
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