Source: The Hindu
Paraguay and India can collaborate to increase regional trade in Latin America. Mr. Modi greeted President Santiago Pena Palacios of Paraguay and highlighted the MERCOSUR economic bloc in Latin America as a potential area of strong collaboration between Paraguay and India. On his first trip to India, Mr. Pena referred to his nation’s “key strategic partner” as India.
New avenues for collaboration in fields like technology, vital minerals, energy, agriculture, healthcare, defense, railroads, space, and general economic cooperation.
Bilateral diplomatic relations between India and Paraguay were first established in 1961. In August 2022, India established an embassy in Asuncion, the capital of Paraguay. A framework agreement between India and MERCOSUR was signed on June 17, 2003. MERCOSUR is a trading group that was established in 1991 and consists of Brazil, Argentina, Paraguay, and Uruguay. The MERCOSUR-India Preferential Trade Agreement, which was signed in New Delhi in 2004, came after this one.
With its sizable population and reputation as a leader in innovation and technology worldwide, India is an important strategic ally of Paraguay. The minerals and natural resources of Paraguay are a particular draw for India.
Model Question:
“India–Paraguay relations reflect India’s growing engagement with Latin America. Discuss the areas of cooperation and potential in bilateral ties between the two countries.”
Model Answer:
India and Paraguay share friendly and growing bilateral relations rooted in democratic values, South-South cooperation, and a mutual desire to diversify global partnerships. India opened its Embassy in Asunción in 2022, reflecting a renewed diplomatic push toward Latin America. Paraguay had already established its embassy in New Delhi in 2006.
Areas of Cooperation:
- Trade and Economy: Bilateral trade is modest but growing. India imports soya oil, leather, and wood, while exporting pharmaceuticals, machinery, and vehicles.
- Multilateral Support: Paraguay supports India’s candidature in multilateral forums, including the UN Security Council.
- Energy and Agriculture: India sees potential in Paraguay’s hydropower resources and agri-business sector, given Paraguay’s surplus energy from the Itaipu Dam.
- Pharmaceuticals and Health: Indian generic medicines are gaining popularity in Paraguay’s health sector.
- Education and Culture: Under the ICCR and ITEC programmes, Paraguayan students pursue studies in India.
With diplomatic presence now in place, India–Paraguay relations have the potential to evolve into a strategic partnership within India’s broader Act Latin America policy. Strengthening economic ties and development cooperation will be key to unlocking this potential.
