Panama has reiterated its support to India’s bid for permanent membership at the United Nations Security Council (UNSC). It has backed India’s fight against terrorism, and invited New Delhi to accede to the Protocol to the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.
Speaking to StratNews Global, Panama’s Vice Minister of Foreign Affairs, Carlos A. Hoyos, expressed solidarity with India over the recent terrorist attacks in Jammu and Kashmir, condemning the violence as “despicable acts on unsuspecting civilians who were actually there to celebrate life.”
“We stand firmly with India in its fight against terrorism. While our region has faced challenges from organised crime, we understand the global impact of terrorism and remain committed to supporting affected nations,” said Hoyos. Recently, a delegation of Indian MPs led by Shashi Tharoor had visited Panama where the issue was discussed.
Digital Cooperation And UPI
One of the promising new areas of collaboration is digital public infrastructure, particularly in the field of digital payments. Vice Minister Hoyos noted Panama’s growing interest in India’s successful Unified Payments Interface (UPI) model as a tool for financial inclusion.
“Digital payments can be transformational, especially for small businesses and underserved communities,” he said. “We are looking closely at India’s experience with UPI and see great potential to adapt such innovations in Panama and the region.”
Panama is already exploring the use of digital platforms, including municipal tax payments via cryptocurrency and is developing a broader regulatory framework to ensure safe adoption of fintech technologies. “For us, financial inclusion is a priority, and our President has said that having a bank account should be considered a human right,” he added.
UNSC Reforms Needed
On UNSC reforms, the visiting Vice Minister highlighted the urgency of restructuring the global body to reflect today’s geopolitical realities. “The UN is approaching 80 years old. Much has changed, and India, as the most populous country in the world and a rising global power, has a legitimate claim to a permanent seat. We fully support India’s bid,” he stated.
He also called on India to join the Protocol to the Treaty on the Permanent Neutrality of the Panama Canal, noting that “the Canal represents Panama’s commitment to global peace and free trade. And India’s accession would send a strong message of support for international neutrality and stability.”
Strategic Diplomacy And Bilateral Progress
Earlier in the day, Vice Minister Hoyos met Minister of State for External Affairs Pabitra Margherita. Both sides reviewed the progress in India-Panama relations and discussed ways to expand cooperation across technology, education, renewable energy and infrastructure. India also conveyed its best wishes and full support for Panama’s forthcoming presidency of the United Nations Security Council.
Hub For India In The Americas
Vice Minister Hoyos underlined Panama’s unique value as a logistics and financial hub, offering access to a market of over 800 million people across Central, South and North America. He encouraged Indian businesses to explore Panama’s Special Economic Zones, including the SEM and EMMA regimes. He cited Panama’s removal from one of the EU restrictive lists as a sign of the country’s strong regulatory progress.
“We would like to see Indian companies set up regional headquarters in Panama. This is a win-win, for Panama’s economy and for Indian firms looking to tap into Latin American markets efficiently,” he said.
Key areas of collaboration include pharmaceuticals, education, digital payments, clean energy and semiconductors. With Panama already hosting logistics operations for companies like Haleon, Hoyos expressed interest in moving up the value chain to manufacturing and R&D.
Panama Wants An IIT
One of the proposals discussed was the establishment of an Indian Institute of Technology (IIT) campus in Panama. Hoyos said such a campus would act as a regional magnet for talent across the Americas, helping Panama position itself as a knowledge and innovation hub.
“In the global war for intellectual talent, the presence of an IIT campus in Panama could be transformational, not only for Panama but also for the entire region,” he said. He stressed that Panama’s strategic connectivity, including direct flights to nearly every capital in the Americas, makes it an ideal location.
Renewable Energy And Solar Partnership
Panama, one of the few carbon-negative countries in the world, is eager to deepen cooperation with India through the International Solar Alliance (ISA). With 84% of its energy grid sourced from renewables, mostly hydro, Panama sees solar as an integral part of its future energy mix. Hoyos confirmed Panama’s interest in advancing solar partnerships with India and acknowledged the legal and fiscal incentives already in place for solar projects in his country.
Infrastructure And Investment
Highlighting Panama’s ambitious five-year infrastructure investment plan, Hoyos invited Indian companies to participate in upcoming public tenders and private investment opportunities. Key projects include a $2 billion water reservoir for the Panama Canal, a railway line connecting Panama City with Costa Rica and major highway and port expansions.
On the multilateral front, he announced that Panama will host the World Economic Forum for Latin America and the Caribbean (LAC) again in January 2026, after a successful debut earlier this year. Hoyos expressed hope that India would send a high-level delegation, possibly even Prime Minister Narendra Modi.
“It would be a dream come true for Panama,” he said, describing Prime Minister Modi as a “stoic, serious and charismatic leader.”
What Next?
From commercial diplomacy to technology transfer and multilateral cooperation, the India-Panama relationship is being reimagined as one of mutual opportunity and regional impact. As Hoyos put it: “We are not just here for trade. We are here for a comprehensive partnership rooted in trust, innovation and shared values.”
