• Prime Minister Narendra Modi held delegation-level talks with Paraguayan President Santiago Pena Palacios in New Delhi on June 2.

• President Palacios arrived in New Delhi on a three-day visit to India to explore ways to expand overall cooperation.

• It is his first visit to India and only the second trip by a President of the South American country.

• Modi and Pena held a comprehensive discussion on the entire spectrum of ties including trade and investment, defence and security, infrastructure, mining and mineral resources, agriculture and food security, and green energy.

• PM Modi also referred to New Delhi’s Preferential Trade Agreement (PTA) with South American trading bloc MERCOSUR.

• MERCOSUR or Common Market of the South is a trading bloc comprising Argentina, Brazil, Paraguay, and Uruguay.

• Modi and Palacios welcomed the establishment of a Joint Commission Mechanism (JCM) that will serve as a key platform to review and advance cooperation in priority areas of mutual interest.

• Modi expressed his deep appreciation for Paraguay for its strong condemnation of the terrorist attack in Pahalgam.

India-Paraguay Relations

• India and Paraguay established diplomatic relations on September 13, 1961, cultivating warm and friendly ties between the two nations.

• Both countries have since developed cooperation in various sectors, including trade, agriculture, health, pharmaceuticals and information technology.

• Paraguay is an important trading partner for India in the Latin American region. Several Indian companies in the automobile and pharmaceutical sectors have their presence in Paraguay.

• Paraguay opened its embassy in India in March 2006. The embassy of India in Asuncion started its operations on January 27, 2022. 

• For the financial year 2022-23, the bilateral trade stood at $477 million.

• Main export items from India to Paraguay include motor vehicles, agrochemicals, auto parts and pharmaceutical products.

• The main import items from Paraguay are soya oil and related products, iron and steel, aluminium, and animal products.

• Paraguay is a member of MERCOSUR. An India-MERCOSUR Preferential Trade Agreement (PTA) was concluded on January 25, 2004 and became operational in June 2009. Preferential duty is given to certain Indian products entering MERCOSUR countries and vice versa.

(The author is a trainer for Civil Services aspirants.)