Paraguay secured a US$150 million biofuel investment during President Santiago Peña’s strategic visit to India, forging a significant partnership that marks a turning point in bilateral relations. This partnership establishes concrete cooperation across multiple sectors, anchoring long-term collaboration in green energy, trade, and cultural exchange.
Major biofuel investment secured
The centrepiece of the visit was the agreement between Paraguayan company Enersur SA and Indian technology firm Praj Industries for a US$150 million biofuel facility in Canindeyú department. The plant will produce 600,000 litres of ethanol daily using low-emission technology, creating 800 construction jobs, 300 permanent positions, and up to 10,000 indirect employment opportunities throughout the value chain.
The India partnership positions Paraguay as a serious actor in sustainable development and demonstrates how cross-border collaboration can accelerate green transitions in emerging economies.
Omar Esteban Bustos, Managing Director of Enersur SA, highlighted the global significance, stating the agreement “will position Paraguay as a world leader in biofuel production”. The investment, financed entirely with Paraguayan capital, reflects the country’s growing economic strength.
Strengthened by India partnership
Thanks to the India partnership, Paraguay achieved another milestone by becoming the 100th full member of the International Solar Alliance (ISA). Ambassador Fleming Raul Duarte presented the ratification instrument in New Delhi, formally joining the India-France initiative promoting global solar energy development.
For Paraguay, joining the ISA is more than a diplomatic gesture, it symbolises a long-term commitment to sustainable energy for future generations.
Security and institutional cooperation
The leaders strengthened security collaboration, with Prime Minister Modi appreciating Paraguay’s solidarity in condemning terrorist attacks and their shared stance against organised crime, drug trafficking and cybercrime.
A Memorandum of Understanding between Paraguay’s Diplomatic and Consular Academy and India’s Foreign Service Institute will facilitate training exchanges and closer institutional ties between the nations’ foreign services, another area where the India partnership is proving influential.
Trade and cultural expansion
Beyond the biofuel investment agreement, both parties reaffirmed potential for expanding economic relations under the India-MERCOSUR Preferential Trade Agreement. A memorandum of understanding was signed to boost commercial cooperation and investments based on equality and mutual benefit.
Education and cultural exchange featured prominently, with Prime Minister Modi noting planned initiatives in student exchanges, sports, and academic mobility. He expressed satisfaction with the growing popularity of Indian cuisine and cinema in Paraguay, calling such cultural resonance “heartwarming.”
Strategic international positioning
The visit follows Paraguay’s earlier success in the first quarter of 2025, when it expanded into 16 new global markets, including Asia. Reflecting the country’s momentum on the international stage and Paraguay’s strategic vision to cultivate stronger Asian economic relationships, while India deepens engagement with Latin America.
