Mexico-India unlocking opportunities in the crude oil sector

Mexico’s prominence as a crucial supplier of crude oil to India has steadily grown, making India the third largest market for Mexican crude oil. Despite fluctuations in value due to international prices, the export volume to India continues to rise, with immense potential for further growth.

India purchased a substantial $3 billion worth of crude oil from Mexico in 2022, cementing Mexico as a reliable partner in India’s energy security. Over the past few years, crude oil imports from Mexico have witnessed a significant upswing, with nearly 75 percent of the Mexican export basket being crude oil.

The prevailing geopolitical landscape, including the Russia-Ukraine conflict and the global impact on energy security, alongside US sanctions on Iran and Venezuela, has encouraged Indian companies to diversify their crude oil sourcing. This has further intensified India’s focus on strengthening energy ties with Mexico, aiming to enhance bilateral trade and cooperation in the energy sector, as well as other essential minerals and metals.

The Mexican government’s commitment to clean energy and privatization has opened doors for Indian companies to participate in energy-related projects within the country. This includes opportunities to engage in production, exploration, and extraction activities, presenting a potential win-win situation for both nations.

Currently, some Indian companies have already invested in Mexico’s oil sector, often as part of multinational consortiums. This existing participation is set to lay the groundwork for future opportunities, contingent on the operational dynamics and the mutual interests that Indian companies, alongside others, can offer to Mexico.

As the energy landscape continues to evolve, India and Mexico stand poised to forge a formidable partnership that leverages each other’s strengths in the energy sector. The foundation of trust and reliability built between the two nations over the years creates a conducive environment for deeper collaboration and investment.

Mexico’s emergence as a key supplier of crude oil to India has not only strengthened India’s energy security but also paved the way for a strategic alliance that extends beyond the energy sector. And both nations are eager to explore further avenues for mutual growth and prosperity, solidifying their position as strong partners on the global stage.