Context:

Paraguayan President Santiago Peña Palacios is currently made a three-day state visit to India from June 2 to 4, 2025, marking only the second-ever visit by a Paraguayan head of state. 

Building Bridges in Clean Energy and Technology

One of the most significant outcomes of this visit has been the decision to deepen cooperation in clean energy, particularly in green hydrogen and biofuels. Paraguay, with its vast hydroelectric resources, and India, a global leader in renewable energy deployment, are natural partners in advancing a low-carbon future.

To institutionalise these growing ties, India and Paraguay signed a Memorandum of Understanding establishing a Joint Commission Mechanism. This mechanism will serve as a formal platform to regularly review cooperation and identify new areas for engagement.

Shared Global Vision

Both nations expressed strong alignment on major global concerns, including:

·         Counter-terrorism and transnational threats such as cybercrime and drug trafficking

·         Climate change and renewable energy transitions

·         Multilateral reforms, especially within the UN system

Expanding Economic and Trade Engagement

Paraguay is steadily becoming a key trade partner for India in Latin America. Indian companies—especially in the automobile and pharmaceutical sectors—have a growing presence in Paraguay, while Paraguayan firms are also increasingly active in India.

Both Prime Minister Modi and President Peña emphasised the scope for expanding bilateral trade, particularly in areas like agri-tech, clean energy, infrastructure, and advanced manufacturing.

About Paraguay:

Paraguay is a landlocked country in south-central South America, bordered by Bolivia, Brazil, and Argentina. Its capital, Asunción, lies along the Paraguay River.

Key Geographical Features:

·         Paraguay River divides the country into two distinct regions:

o    Eastern Region (Región Oriental) – subtropical, more fertile and densely populated

o    Western Region (Chaco Boreal) – tropical, drier, and sparsely inhabited

·         Major Rivers: Paraguay, Paraná, Pilcomayo, and Apa

·         Lakes and Valleys: Central and western Paraguay are defined by the Paraná and Paraguay valleys, and notable lakes such as Ypacaraí and Ypoá

·         Mountain Ranges: The Amambay, Mbaracayú, and San Rafael ranges form part of the Brazilian Plateau, with Mount San Rafael (850 m) being the highest peak

·         Climate: Eastern Paraguay experiences humid subtropical conditions with 1,400–1,650 mm of rainfall annually, while the Chaco region to the west is tropical and semi-arid, with about 760 mm of rainfall

Paraguay is one of the world’s top hydropower exporters, making it especially relevant to India's green energy goals.

Conclusion:

President Peña’s visit marks a turning point in India-Paraguay relations. Backed by strong political will, shared global perspectives, and growing economic synergy, the partnership is evolving into a dynamic and multifaceted engagement. With structured mechanisms in place and a deepening focus on clean energy, digital growth, and strategic trade, India and Paraguay are poised to strengthen their position as cooperative actors in an increasingly interconnected and multipolar world.