NEW DELHI, India – Paraguayan President Santiago Peña Palacios will embark on a state visit to India from June 2 to 4, at the invitation of Indian Prime Minister Narendra Modi. This marks President Peña's first visit to India and only the second time a Paraguayan president has visited the country, underscoring the growing importance of bilateral relations. The Ministry of External Affairs (MEA) of India announced the visit in a statement, emphasizing that it will serve to further deepen cooperative ties between the two nations.
Summit Between Leaders and High-Level Meetings
On June 2, the first day of his visit, President Peña is scheduled to hold bilateral talks with Prime Minister Modi in New Delhi. These discussions are expected to cover the full spectrum of bilateral relations, including key areas such as trade, agriculture, health, pharmaceuticals, and information technology. Prime Minister Modi will host a luncheon for President Peña as a gesture of hospitality.
President Peña is also slated to pay a courtesy call on Indian President Droupadi Murmu and attend an official dinner hosted by her. Additionally, he will meet with Vice President Jagdeep Dhankhar and Minister of External Affairs S. Jaishankar. These successive meetings with high-ranking Indian officials are anticipated to strengthen political ties and concretize cooperation initiatives across various sectors.
President Peña will be accompanied by a high-level delegation comprising ministers, senior officials, and business representatives. This signifies the Paraguayan government's commitment to exploring practical economic and technological cooperation, beyond mere diplomatic formalities. President Peña will return to Paraguay on June 4 after visiting Mumbai.
Strong Relations and Expanding Cooperation
India and Paraguay have maintained warm and friendly relations since establishing diplomatic ties on September 13, 1961. Both countries have developed strong cooperation in various fields, sharing common positions on numerous international issues such as UN reforms, climate change, renewable energy, and the fight against terrorism. This indicates that beyond diplomatic relations, they share common goals in addressing major global challenges.
Paraguay has emerged as an important trading partner for India in the Latin American region. Several Indian companies are actively operating in Paraguay, particularly in the automotive and pharmaceutical sectors. Similarly, Paraguayan companies have entered India, primarily through joint ventures, contributing to the strengthening of economic ties. Notably, as a strong agricultural nation in Latin America, Paraguay holds significant potential to contribute to India's food security, while India's advanced agricultural technologies can help enhance Paraguay's agricultural productivity.
During his visit to Mumbai, President Peña will meet with political leaders of Maharashtra state and engage with key representatives from the business, industry, startup, and technology sectors. This is interpreted as an intention to seek concrete investment and cooperation opportunities in Mumbai, India's economic capital and a hub for technological innovation. In particular, India's strengths in information technology (IT) and its startup ecosystem can play a crucial role in Paraguay's economic diversification and digital transformation.
Potential for Bilateral Cooperation and Future Prospects
President Peña's visit to India is considered a significant opportunity to elevate bilateral relations to a new level. As a full member of Mercosur, the South American common market, Paraguay can serve as a gateway for India to access the Latin American market. Conversely, India is an attractive partner that can provide Paraguay with technology, capital, and a vast market.
Trade and Investment: While bilateral trade has been steadily increasing, it remains below its potential. According to India's Ministry of External Affairs data, bilateral trade was approximately $200 million in the 2023-24 fiscal year. This visit could lead to the signing of trade and investment agreements in various sectors, including agricultural products, pharmaceuticals, auto parts, and IT services. In particular, Paraguay's agricultural products like soybeans, meat, and biofuels can contribute to India's growing demand, while India's pharmaceutical and IT technologies can aid Paraguay's industrial modernization.
Agricultural Cooperation: Paraguay is an agricultural country with vast arable land and abundant water resources, while India boasts strengths in agricultural technology and research and development. Both countries can strengthen cooperation in areas such as seed technology, irrigation systems, agricultural mechanization, and agricultural research and education to create mutual benefits. This will contribute to enhancing Paraguay's agricultural productivity and strengthening India's food security.
Pharmaceuticals and Healthcare: India is known as the 'pharmacy of the world' due to its capacity to produce affordable and high-quality medicines. Paraguay can increase its import of Indian pharmaceuticals, and Indian companies can expand their presence in the Latin American market by establishing local production and distribution networks in Paraguay. Additionally, cooperation in the healthcare sector, such as strengthening public health systems and exchanging medical professionals, is also anticipated.
Information Technology and Digital Transformation: As a global IT powerhouse, India has significant potential to support Paraguay's digital transformation. Cooperation initiatives can be explored in various areas, including the establishment of e-governance systems, software development, IT human resource training, and the nurturing of a startup ecosystem. This will contribute to Paraguay's economic diversification and increased productivity.
Energy and Environment: Both countries share a common commitment to addressing climate change and developing renewable energy. India's renewable energy technologies, such as solar and wind power, can contribute to Paraguay's energy transition, and Paraguay's experience in hydropower can be a valuable reference for India.
Cultural and People-to-People Exchange: Beyond diplomatic relations, expanding people-to-people exchanges in education, culture, and tourism is also crucial. Student exchange programs and cultural events can enhance understanding and build mutual trust between the people of both nations.
President Peña's visit to India is expected to be a significant turning point that will further solidify the more than 60 years of friendly relations between the two countries and establish a comprehensive cooperation model suitable for a new era. In particular, stronger cooperation between these two important nations in Latin America and Asia can consolidate solidarity among Global South countries and contribute to strengthening a multilateral international order.
[Copyright (c) Global Economic Times. All Rights Reserved.]
