Canada and Mexico Offer India Alternative Trade Route Amid US Dependence

Canada and Mexico may provide India with an alternative market as it looks to diversify away from its dependence on the US economy. A Moneycontrol analysis of commodity-level trade data shows that the two North American markets have enough import demand to potentially accommodate about $58 billion worth of Indian goods currently exported to the US.

This is equivalent to around 63.5% of India's total exports to the US, which stood at $91.2 billion in recent times. The analysis compares India's exports of each commodity to the US with Canada and Mexico's imports of the same product from countries other than India.

For instance, India exports around $3.14 billion worth of precious-metal jewellery to the US, while Canada and Mexico together import nearly $1.8 billion of the same product from suppliers other than India. Similarly, in cotton T-shirts, the two countries' non-India imports are more than three times India's $432 million exports to the US.