This article covers the economic relationship between India and Paraguay: bilateral trade and its composition, the trade figures for recent financial years, the India-MERCOSUR Preferential Trade Agreement, Indian companies present in Paraguay, and business promotion activities. It is based on the Ministry of External Affairs (MEA) bilateral brief of June 2026, and figures are reproduced as the brief gives them.

Bilateral trade in 2024-25

According to the MEA brief of June 2026, India-Paraguay bilateral trade stood at USD 213.88 million in fiscal year 2024-25, citing the Ministry of Commerce and Industry, Government of India. India's exports to Paraguay were valued at USD 180.47 million, while Paraguay's exports to India reached USD 33.41 million.

What the two countries trade

The main export items of Paraguay to India are soya oil and related products, iron and steel, aluminium, and animal products. The main export items from India to Paraguay include motor vehicles, agrochemicals, auto parts and pharmaceutical products.

Trade figures by year

The brief gives the following trade statistics from the Ministry of Commerce and Industry (MOCI), for the financial years FY 2019-20 to FY 2025-26, with all values in US$ millions:

  • FY 2019-20: Indian exports 126.97; Paraguay exports 25.28; total trade 152.25; trade balance 101.69
  • FY 2020-21: Indian exports 160.81; Paraguay exports 15.61; total trade 176.43; trade balance 145.20
  • FY 2021-22: Indian exports 211.15; Paraguay exports 16.3; total trade 227.45; trade balance 194.85
  • FY 2022-23: Indian exports 156.34; Paraguay exports 19.80; total trade 176.14; trade balance 136.54
  • FY 2023-24: Indian exports 212.25; Paraguay exports 30.51; total trade 242.76; trade balance 181.74
  • FY 2024-25: Indian exports 180.47; Paraguay exports 33.41; total trade 213.88; trade balance 147.06
  • FY 2025-26: Indian exports 188.22; Paraguay exports 26.26; total trade 214.48; trade balance 161.96

All values, including the trade balance for each year, are those given in the brief. No figures have been calculated for this article.

India-MERCOSUR Preferential Trade Agreement

Paraguay is a member of MERCOSUR. An India-MERCOSUR Preferential Trade Agreement (PTA) was concluded on 25 January 2004 and became operational in June 2009.

Indian companies in Paraguay

The brief records that a number of Indian companies have a presence in Paraguay. These include Bajaj Motors, Mahindra, Praj Industries, Royal Enfield, TATA, TVS Motors and UPL.

Vemarcorp, owned by a person of Indian origin, became the first steelmaker in Paraguay to produce recycled steel, in 2018. Crompton Greaves, an Indian electrical equipment company, has been supplying transformers, switchgear and other electrical materials to Paraguay.

Business promotion by the Embassy of India

The brief states that the Embassy of India, in collaboration with local partners, has been undertaking activities to promote bilateral business and investment ties. These include:

  • Participation in the Paraguay Business Fair (FEPY 2026) on 3-5 June 2026 with an India Stall, and a 'Brand India Evening' on 5 June 2026 with Indian companies Bajaj Motors, Mahindra, Royal Enfield and UPL.
  • A 'Brand India Lounge', established on 26 January 2026 in Asuncion, to showcase Indian companies engaging with Paraguay and to provide a platform for commercial collaboration. The companies named are Bajaj Motors, Mahindra, Praj Industries, Royal Enfield, TATA, TVS Motors and UPL.
  • A Webinar on Pharmaceuticals and Medical Devices on 4 November 2025.
  • A Webinar on 2 April 2024 between the Association of Autoparts Industries of Paraguay and the Automotive Component Manufacturers Association of India.
  • Participation in the Mariano Roque Alonso Expo in 2022 and 2023.

Trade dialogue

The then Vice Minister of Investments and Export Networks (REDIEX) in Paraguay's Ministry of Industry & Commerce, Mr. Rodrigo Maluff, participated in the Commerce and Trade Ministers' Session on 'Global South and Resilient Supply Chains'. The session was hosted by CIM Mr. Piyush Goyal in virtual format on 17 November 2023.