Land-locked Paraguay in south-central South America which does about $400 million in trade with India, wants to expand into sectors ranging from energy and agriculture to education and technology.
In an exclusive conversation with StratNews Global, Paraguay's Ambassador Fleming Raul Duarte undescored that ties between the two countries are entering a new phase of 'practical cooperation and mutual opportunity.'
This year is set to be milestone year for the bilateral relations, building on the momentum from high-level engagements in 2025, including President Santiago Peña's visit to India and the inaugural Joint Commission Mechanism (JCM) meeting.
Also in 2019, former Vice President Venkaiah Naidu had visited, also External Affairs Minister S Jaishankar in 2022, and the Indian embassy had opened the same year
'We are very satisfied to see that our relationship is gaining momentum,' he said, adding that both nations are committed to avoiding 'fragmentation' and instead focusing on collaborative growth.
He also underscored the significance of a potential visit by Narendra Modi to Paraguay, which would mark a historic milestone in bilateral relations.
With the total bilateral trade around $400 million in 2024-25, there is clear push on both sides to boost commercial ties, diversify the trade basket and explore deeper integration of supply chains.
'The expansion of the preferential trade agreement between India and MERCOSUR remains an important priority for Paraguay and other members,' said the ambassador.
Paraguay offers substantial economic potential. He pointed to the country's strengths in clean energy, particularly hydropower, noting that Paraguay is home to some of the world's largest hydroelectric facilities.
'We are big in opportunities,' he said. 'We are especially interested in adding value to our production, and India has strong capabilities in areas like biotechnology and information technology.'
Paraguay is also investing in logistics infrastructure, including a major bioceanic corridor that will connect the Atlantic and Pacific Oceans. This project is expected to transform trade routes and reduce transit times across South America.
'India can play a role not only in financing but also in knowledge transfer and technological support,' the Ambassador noted.
While Paraguay already generates significant renewable energy, the country is now looking to diversify into solar and other sustainable sources. He called India a 'strategic partner' in this transition.
'We need international cooperation, development banks, and technology partners. India is well positioned to contribute in all these areas,' he said.
He also highlighted Paraguay's vast, underpopulated western region as a key area for renewable energy expansion and industrial development.
Education and human capital development are central to Paraguay's long-term strategy. The Ambassador revealed that the government has launched scholarship programs to send thousands of students abroad and is keen to expand academic exchanges with India.
'We want more linkages between universities,' he said. 'Fields like engineering, environmental sciences, and technology are especially important for our development.'
He also stressed the importance of English-language education and expressed interest in bringing Indian educators to Paraguay.
On the issue of visas and travel, he acknowledged existing challenges but noted ongoing efforts to streamline processes.
'We are improving our online visa systems and exploring fast-track options for business travellers,' he said. 'Mobility is key to unlocking trade and investment.'
Agriculture remains a cornerstone of Paraguay's economy, and the ambassador sees strong potential for collaboration with India in agri-tech and satellite applications.
'Space technology is crucial for modern agriculture,' he said. 'We are exploring partnerships that can help our farmers improve productivity and sustainability.'