New Delhi, June 4 : Indian Prime Minister Narendra Modi on Monday said India and Paraguay can deepen trade and economic cooperation through the MERCOSUR trade bloc, as he met Paraguayan President Santiago Peña Palacios in New Delhi.
Speaking after bilateral talks, Modi said the two countries see “new opportunities for cooperation” in areas ranging from digital technology and critical minerals to defence, space, and railways.
“We have a Preferential Trade Agreement with MERCOSUR. We can work together to further expand it,” Modi said, referring to the South American trade bloc comprising Brazil, Argentina, Paraguay, and Uruguay. Peña, on his first official visit to India, described the country as a “key strategic partner” and said the talks with Modi were “productive.”
“India, with its vast population and global leadership in technology and innovation, represents a key strategic partner for Paraguay,” Peña said in a statement following the meeting.
The visit comes amid shifting global trade dynamics following Donald Trump’s return to the U.S. presidency, with emerging economies exploring new avenues for economic alignment and resilience.
India and MERCOSUR signed a framework agreement in 2003, followed by a Preferential Trade Agreement (PTA) in 2004. Indian officials say Paraguay, with its natural resources and mineral wealth, could serve as a reliable regional partner, given its traditionally cautious and non-aligned foreign policy.
A senior Indian official, speaking on condition of anonymity, said Paraguay’s balanced approach sets it apart in a region often dominated by the larger political and economic interests of Brazil and Argentina.
Brazil, led by leftist President Luiz Inácio Lula da Silva, and Argentina, under right-wing President Javier Milei, have traditionally played leading roles within MERCOSUR. India and Paraguay established diplomatic relations in 1961. India opened its embassy in Paraguay’s capital Asuncion in August 2022.
