India’s development partnership with Nicaragua reached another milestone with the inauguration of a new electric substation and transmission lines in La Esperanza, 250 km south east of the capital Managua. The project, supported through an Indian government Line of Credit (LoC), will help improve electricity access for over 30,000 people.
A virtual message was delivered by India’s Minister of State for External Affairs, Pabitra Margherita, who described the project as a reflection of the growing cooperation between India and Nicaragua in infrastructure, energy, health, and social development.
Margherita stressed the broader context of India’s development partnership with Nicaragua, noting “The La Esperanza substation is part of a series of power sector projects funded by India to help strengthen Nicaragua’s electricity network. India remains committed to inclusive development partnerships in Latin America and the Caribbean, aligned with the needs and priorities of partner countries.”
India has extended a total of five LoCs to Nicaragua, amounting to $ 94.98 million, covering both energy and health sectors.
- $10 million (2013): For supply of Indian equipment to build two electric substations
- $26.24 million (2014): For Carlos Fonseca Substation, 95 km of transmission lines, and expansion of three existing substations
- $31.29 million (2015/16): For additional substations and transmission infrastructure, including the recently inaugurated La Esperanza substation
Health Sector
- $20.10 million (2020): For the reconstruction of Aldo Chavarria Hospital
- $7.35 million (2021): For upgrading medical equipment at the Antonio Lenin Fonseca Hospital’s High Technology Centre
All LoCs are facilitated through the Export-Import Bank of India.
The minister highlighted India’s “India for Humanity” initiative, under which the Jaipur Foot Camp is currently being conducted in Nicaragua, providing 500 artificial limbs to patients at no cost. He recalled his visit to Nicaragua in March 2025, and described it as a valuable opportunity to advance cooperation across energy, health, trade, and investment.
In his address he also mentioned India’s support for Quick Impact Projects (QIPs) in Nicaragua, which are small-scale, fast-delivery initiatives that address immediate community needs.
India expressed interest in contributing to Nicaragua’s development through long-term partnerships, while Nicaraguan leaders welcomed Indian investment and technology transfer.
Connecting With Latin America
Nicaragua is a member of SICA (Central American Integration System) and CELAC (Community of Latin American and Caribbean States), two key multilateral groupings in the region.
India has engaged with both bodies in recent years as part of its goal to strengthen ties with Latin America and the Caribbean. The Indian government sees cooperation with Nicaragua as part of its larger outreach to multilateral platforms in the Global South, where India advocates for inclusive development, renewable energy partnerships, and South-South cooperation.
By working with SICA members like Nicaragua, India aims to build bridges with Central America, a region that has traditionally had limited engagement with South Asia.
India’s involvement in Nicaragua’s energy and health sectors reflects a practical and long-term approach to bilateral cooperation. With completed and ongoing projects in infrastructure and humanitarian outreach, both countries are building a framework that could support more structured cooperation in the years ahead.
