Rising crude oil prices may lead to a near 30-per cent jump in India’s import bill from Mexico, the Latin American nation’s Ambassador, Melba Pria, said on Friday. Rising oil bill is creating a trade imbalance with Mexico since last year.
The bilateral trade reported 20 per cent jump to $7.7 billion in FY18. Import bill on crude, which accounts for 70 per cent of the total, was up 50 per cent to $2.7 billion. Overall imports rose 33 per cent to $3.9 billion.
India’s exports rose by over 9 per cent to $3.8 billion with vehicles contributing nearly 52 per cent of the export revenue. Vehicle exports to Mexico improved by over 8 per cent to $2 billion last year. Plastics, organic chemicals, garments, machinery were other major export items.
“In terms of bilateral trade we are just scratching the surface. However, today Mexico’s export to India is primarily on account of crude oil. And this is expected to rise by at least 30 per cent considering the rise in price,” Pria told reporters on the sidelines of an event organised by the Bengal Chamber of Commerce and Industry.
According to her, Mexico should also look at diversifying its product portfolio to India.
“Today the trade is more or less balanced. But, I think, we (Mexico) should look at expanding our export offerings,” Pria added.