New Delhi confirmed strengthened bilateral ties with Paraguay this week during President Santiago Peña’s state visit, focusing on trade diversification and technology transfers. India’s exports to Paraguay surged to $297 million in 2023, led by refined petroleum and pharmaceuticals, while Paraguay supplied $214 million in soybean oil and scrap metals. The two nations established a Joint Commission Mechanism to accelerate cooperation in defense, renewable energy, and agriculture. Paraguay seeks Indian expertise to develop a 500 MW solar park through the International Solar Alliance and modernize its farming sector with AI-driven crop models. Indian officials highlighted Paraguay’s role as a founding member of the Global Biofuel Alliance, with joint green hydrogen projects underway. Defense talks focused on cybersecurity and satellite technology, reflecting Paraguay’s efforts to reduce historical reliance on regional neighbors. The partnership avoids engagement with China, as Paraguay remains one of few South American nations without Beijing ties. Mercosur trade bloc limitations further drive Paraguay’s outreach—bilateral trade with India grew 6.65% annually since 2018, outpacing stagnant regional agreements. Pharmaceuticals form a key pillar, with Indian companies supplying 12% of Paraguay’s medicine imports. Mumbai meetings this week aim to expand tech startups and critical mineral investments. Prime Minister Modi accepted an invitation to visit Paraguay, signaling long-term alignment. This strategic pivot leverages Paraguay’s hydropower resources and agricultural base while granting India access to Latin American markets untouched by Chinese influence. Officials confirmed plans to collaborate on UN Security Council reforms, with Paraguay backing India’s 2028-29 candidacy. The alliance underscores a broader trend of middle powers forging non-aligned economic pathways amid geopolitical fractures.