Santiago Peña Palacios is scheduled to visit India early next month. It will be his first state visit to New Delhi and the second by a Paraguayan President, the first was by Fernando Lugo Mendez in 2012. Peña will be accompanied by a delegation of ministers and business leaders during the three-day trip beginning June 2.
The visit comes at the invitation of Prime Minister Narendra Modi. Peña’s itinerary includes engagements in New Delhi and Mumbai. Besides political meetings, he is slated to interact with captains of industry and key figures in innovation and technology.
Strengthening Strategic Ties
Paraguayan President Peña is scheduled to meet Prime Minister Modi on June 2 for bilateral talks. Discussions will cover a range of issues including trade, investment, energy, food security and cooperation in science and technology.
President Droupadi Murmu will host a banquet in his honour. Vice President Jagdeep Dhankhar and External Affairs Minister S Jaishankar are scheduled to meet the visiting leader.
The Paraguayan President’s visit comes at a time of growing synergy between both countries. Diplomatic relations established in 1961 have since evolved into a broad-based partnership encompassing trade, agriculture, health, ICT, pharmaceuticals, manufacturing and renewable energy.
Indian companies have made their presence felt in Paraguay’s automotive and pharmaceutical sectors. Paraguayan businesses are increasingly exploring joint ventures in India.
Economic And Agricultural Cooperation
One of the most dynamic areas of current engagement is agriculture. Paraguayan farmland has emerged as an attractive alternative for Indian investors seeking food security solutions. And this is due to the declining water table and unpredictable monsoon in north India.
Indian agricultural and MSME delegations have already visited Paraguay, exploring farming ventures, agro-processing opportunities and collaborations across the entire agricultural value chain.
The cost of high-quality arable land in Paraguay—ranging from $2,000 to $3,000 per acre—has added further impetus to this trend. With Paraguay’s rich agro-ecosystem and India’s growing food demand, the two sides are exploring partnerships in contract farming, fertilisers, agri-tech and sustainable farming practices.
The push for enhanced agricultural cooperation aligns with a broader economic agenda aimed at strengthening value chains and securing long-term food supplies. A recent presentation by UK-based firm Atoll at the Indian mission in Asuncion, which specializes in converting green hydrogen into ammonia and fertilisers, exemplifies the innovation-driven collaborations emerging between both nations.
Expansion of MERCOSUR PTA
Trade relations are also expected to receive a boost with renewed discussions around the MERCOSUR-India Preferential Trade Agreement. Paraguay, a founding member of MERCOSUR, plays a vital role in advancing India’s trade ties with the South American economic bloc. Both India and Paraguay are committed to expanding and diversifying the trade basket under the agreement, which currently covers limited tariff lines.
Despite existing challenges in bilateral trade volume, there is clear momentum towards a more balanced and diversified partnership. Both countries are actively engaged in exploring ways to expand the agreement to include newer sectors such as digital services, pharmaceuticals, renewable energy and food processing.
Energy, Innovation And Strategic Opportunities
Peña’s visit also offers a unique opportunity to expand cooperation in strategic sectors such as clean energy, cyber security and even space exploration. Paraguay is the world’s leading exporter of clean hydroelectric power and a member of the International Solar Alliance—co-led by India and France—offering strong potential for collaboration on solar and green energy initiatives.
“This is one country in the region which has kept out China, and for India, this is the best opportunity to become a strategic partner of Paraguay in the space sector, especially in an effort to drive its space programme at low cost,” said a top diplomat.
India’s recent establishment of a full-fledged mission in Asunción—a historic first—reflects a shared intent to build a deeper strategic and economic partnership. This institutional step underscores the commitment to fostering high-level dialogue, business facilitation and people-to-people exchanges.
Shared Vision For The Future
Paraguayan Ambassador to India, Fleming Raul Duarte, stressed the broader vision driving the partnership: “Both Paraguay and India are looking at new areas of cooperation like hydropower, as the South American country is the number one global exporter of clean energy. Capacity building in the field of cyber security and defence, as well as the use of communication and information technologies, will help in opening more opportunities for the youth of my country.”
Sector-specific engagements are also expanding. There have been various delegations visiting inward/outward and focus has been on IT, pharma, chemicals, bio-energy, automobile components and agriculture. These visits are a direct outcome of proactive efforts by both governments and the private sector to explore high-value partnerships.
As Paraguayan President Peña prepares for this India visit, the bilateral partnership stands at an inflection point. The visit is expected to result in significant agreements, renewed political goodwill and tangible progress on economic and strategic cooperation.
