Prime Minister Narendra Modi arrived here from the US on the fifth and final leg of his five-nation tour.
"Hola Mexico! PM @narendramodi lands in Mexico city for an important evening of diplomacy," External Affairs Ministry Spokesperson Vikas Swarup tweeted on Thursday.
Mexican Foreign Minister Claudia Ruiz Massieu was present at the airport to receive Modi.
Ruiz Massieu was in New Delhi in March this year and in a meeting with External Affairs Minister Sushma Swaraj, both leaders explored the possibility of taking bilateral relations to a higher level.
This is the first prime ministerial visit from India to Mexico after then Prime Minister Manmohan Singh's visit in 2012 for the G20 Summit.
Modi will hold bilateral talks with Mexican President Enrique Pena Nieto during which the issue of India's membership in the Nuclear Suppliers Group (NSG) is expected to come up.
On June 6, Switzerland, an important member of the NSG, extended support to India's membership in the group during Modi's stopover in Geneva en route to the US from Qatar.
Bilateral investments will be a major focus during the talks in Mexico.
Two-way trade between India and Mexico stands at around $6 billion.
Within Asia, India is the largest importer of crude oil from Mexico.
India's major exports to Mexico include pharmaceutical products and automobile parts.
According to India's Ambassador to Mexico Muktesh Pardeshi, there are 50 Indian companies in Mexico which have created around 10,000 jobs.