Paraguay’s President Santiago Peña Palacios began his first official visit to India on Monday, marking a significant moment in New Delhi’s growing outreach to Latin America.
The three-day trip is expected to accelerate India’s partnership with Paraguay and reinforce its broader pivot to the Western Hemisphere. President Peña received full state honours at New Delhi’s Palam air base.
Trade, Technology & Global South Agenda
In his talks with Prime Minister Narendra Modi, President Peña stressed Paraguay’s intention to diversify its international partnerships, describing India as a “natural partner” for long-term cooperation.
“India and Paraguay are integral parts of the Global South,” said PM Modi. “Our hopes, aspirations and challenges are similar. Through mutual cooperation, we can pave the way for shared prosperity.”
President Peña and Modi discussed expanding collaboration in digital public infrastructure, space technology, critical minerals, agriculture and health.
On energy, India is already supporting Paraguay through the International Solar Alliance. A 500-MW solar park project in Paraguay is being guided by India’s NTPC as technical consultant. Both countries are exploring green hydrogen and biofuels as next-phase priorities.
Paraguay & India’s Latin America Strategy
Trade discussions were high on the agenda. Paraguay expressed support for India’s enhanced engagement with South American trade bloc MERCOSUR. While no new trade pacts were signed, officials confirmed that talks on expanding the preferential trade agreement are being pursued with all MERCOSUR members.
During a special briefing, Secretary (East) in the Ministry of External Affairs, Periasamy Kumaran said: “Paraguay positions itself as a bridge to larger South American markets. President Peña is encouraging Indian companies to see Paraguay as a launch pad, not just a destination.”
“India is exploring deeper engagement not only with MERCOSUR but also through the India-CELAC dialogue platform. Latin America offers a huge opportunity for Indian exports, investments and technology partnerships.”
The Community of Latin American and Caribbean States (CELAC), of which Paraguay is an active member, has been part of India’s structured engagement with the region. India hosted the third India-CELAC Foreign Ministers’ meeting virtually in 2023. Both sides are now working on sectoral collaborations ranging from pharma and fintech to sustainable development.
No Discussion on IDB Membership
In response to StratNews Global’s query on whether India is joining the Inter-American Development Bank (IDB) — Latin America’s premier multilateral lender — Secretary Kumaran clarified that while India has expressed interest at the policy level, “the subject did not specifically come up during this visit.” However, India is closely monitoring opportunities to work with IDB members, including Paraguay, on co-financed development projects.
President Peña has been vocal about the need for multilateral institutions to adapt to global realities, and Indian officials noted convergence on reforming not just the UN Security Council, but also global financial institutions to better reflect the voices of emerging economies.
Space, Defence And Inland Connectivity
India and Paraguay are finalising a framework agreement on space cooperation. “Paraguay is seeking India’s assistance through ISRO and is interested in learning from India’s success with affordable, small-satellite platforms,” Kumaran added.
Defence cooperation, though in its early stages, was another area of interest. “Paraguay is exploring options to strengthen inland waterway security and surveillance. They see value in India’s experience with low-cost, high-impact technologies.”
“Our partners in Paraguay see the value in India’s cost-effective and reliable defence technologies, particularly for non-traditional domains like riverine patrol and disaster response,” said Secretary Kumaran. Talks are ongoing on expanding training exchanges and exploring small-scale equipment procurement.
Inland waterways were a key topic of discussion, given Paraguay’s heavy reliance on river systems for trade. Talks were initiated between Paraguay’s delegation and India’s Inland Waterways Authority to explore technical cooperation and knowleparadge exchange.
Education, Pharma And More
India and Paraguay also agreed to strengthen academic and health cooperation. A detailed discussion was held on adapting India’s digital education stack for rural Paraguay’s needs, including curriculum development, teacher training and infrastructure upgrades.
The Paraguayan leader invited Indian companies to invest in sectors like agro-tech, pharmaceuticals, renewable energy and logistics.
PM Modi acknowledged Indian pharma’s growing footprint in the region and welcomed Paraguay’s interest in recognising Indian pharmacopoeia standards. Traditional medicine and yoga promotion are also on the table.
Indian companies like UPL, Aditya Birla and Royal Enfield already operate in Paraguay. The country hopes to serve as a hub for Indian enterprises seeking access to Brazil, Argentina, and the broader South American market.
President Peña is scheduled to travel to Mumbai on Tuesday, where he will meet state leaders, industry executives and technology innovators before concluding his visit on June 4.
A Broader Latin American Vision
President Peña’s visit follows a string of India’s diplomatic initiatives in Latin America, including recent engagements in the Caribbean and at the CELAC-India foreign ministers’ dialogue. India is also expanding its presence in regional supply chains by partnering in food security, green energy, and digital public goods.
“We see Latin America as a strategic region for India’s long-term trade and development goals,” said Secretary Kumaran. “President Peña’s visit confirms the growing interest in India as a stable, trusted and innovative partner.”
PM Modi has accepted President Peña’s invitation to visit Paraguay. Officials from both sides are working toward scheduling the first-ever visit by an Indian Prime Minister to the country.
