This article covers trade and investment between India and Panama: the value of trade, the main goods exchanged, Panama's economy as the brief describes it, the sectors the brief identifies for trade and investment, and recent business contacts. It draws on the MEA brief of June 2026 on India-Panama relations.

Bilateral trade

According to the MEA brief of June 2026, India-Panama trade in 2024-25 was US$ 453.31 million.

The main items of India's exports to Panama are minerals, apparel and textiles, pharmaceuticals, miscellaneous manufactured articles, man-made fibres and filaments, electrical and electronic equipment, soap and washing preparations, and medical and surgical instruments and accessories. The main items imported from Panama include iron and steel, teak and other wood pulp, aluminium and articles thereof, mineral fuels, oils and waxes, mineral products, hides and skins, and leather.

Panama's economy as described in the brief

The brief states that both India and Panama are among the few fastest-growing economies in the world, and that Panama witnessed average economic growth of 5% during the last decade. It describes Panama as one of the most stable and fastest growing economies in Latin America and a commercial hub of Central America.

The Panamanian economy, according to the brief, remains mainly services-oriented. It relies heavily on the Panama Canal, tourism inflows, banking transactions and the re-export of merchandise by companies located in Panama's Colon Free Trade Zone. The Government of Panama continues to project the country as a major logistical and transportation hub in Central and Latin America.

Panama hosts an international offshore and onshore banking services centre. There are about 70 international and national banks based in Panama, with assets of over US$ 93 billion. The brief also notes that the Panama & United States Trade Promotion Agreement gives any investor in Panama direct access to the American market.

Panama as a base for Indian business

The brief suggests that, given its strategic location and close cultural and political links with Latin American countries, Panama could be a useful hub for India's economic and business outreach in Latin America. It sees a role for India in knowledge-based industries such as consultancy, finance, IT, health services, insurance, education, software development, and science and technology.

Panama has invited Indian companies to invest in the Colon Free Zone. The brief states that most Indian businesses in Panama are in the Colon Free Zone, and that Indian companies are interested in the health, energy, infrastructure, IT and telecommunication sectors.

Sectors identified in the brief

The brief lists the following sectors with potential for trade and investment:

  • Pharmaceuticals: Panama is the 3rd largest buyer of pharmaceutical products in Central America and imports most of them. Only 6% of what is sold in Panama is made in the country, and all pharmaceutical medicines are 100% import free.
  • Teak: approximately 80 thousand hectares of timber trees are grown in Panama for commercial trade, mainly teak, cocobolo, mahogany and Caribbean pine. The brief states that 95% of the teak produced in Panama is exported to India.
  • IT products and services, with a focus on the financial services sector.
  • Automobiles and auto parts: automobiles are a major import item for Panama, from countries such as Japan, South Korea and Mexico.
  • Wind and solar energy: Panama is the top energy consumer in Central America and imports more than 80% of its energy.
  • Food products and agricultural machinery: agriculture accounts for less than 10% of GDP, and imports of food products have accelerated in recent years.

The brief also names agriculture, engineering, health, energy and information technology as areas with potential, and suggests joint ventures in the cultivation of lentils, oil seeds and food grains and joint research in dairy farming, seeds and pulses.

Business contacts

In March 2025, the ProPanama Administrator, Mr. Gerardo Peláez, attended the 10th CII LAC Conclave and met EAM on the sidelines. A CII-ProPanama MoU was signed to deepen institutional collaboration.

In January 2026, representatives of Indian companies took part in the LAC International Economic Forum in Panama City.