Published: June 3, 2025
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Paraguay’s President Santiago Peña’s recent visit to India marks a quiet but significant moment in India’s foreign policy. This isn't just about bilateral ties, it's part of a deeper, long-term strategy: India’s evolving “Act Latin America” policy (Thread) 1/17

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India’s engagement with Latin America has often flown under the radar. But this visit signals something larger, a recalibration of India’s global priorities, with Latin America now seen as a serious partner for trade, resources, and strategic cooperation.

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In the past decade, under PM Modi’s leadership, India has steadily expanded its presence in the region, opening new embassies, signing trade agreements, and increasing high-level political visits. Latin America is no longer a distant frontier, it’s a growing focus.

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Take Paraguay. Once a peripheral partner, it now supplies a major share of India’s imported soybean oil. India opened its embassy in Asunción in 2022. The move wasn’t symbolic, it’s a calculated step in a broader regional outreach strategy.

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Over the last 11 years, India has: - Opened embassies in Paraguay & Dominican Republic - Signed trade deals with MERCOSUR bloc - Strengthened ties with Brazil, Argentina, Mexico & Peru - Regularly hosted leaders & business forums with LAC countries

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India’s Latin America outreach under PM Modi isn’t just diplomatic, it’s strategic with personal touch Since 2014, there have been high-level visits that reflect a quiet but steady deepening of engagement across the region.

In 2016, PM Modi became the first Indian PM to visit Mexico in three decades. He met President Enrique Peña Nieto and discussed energy, space, and pharma cooperation. Mexico is now India's top trade partner in Latin America after Brazil.

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PM Modi also visited Brazil twice, for the BRICS Summits in 2014 and 2019. On both occasions, he met with Latin American leaders and emphasized building South–South cooperation and reforming global governance institutions.

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On the flip side, India has hosted several Latin American heads of state: Brazilian President Jair Bolsonaro was the chief guest for India’s Republic Day in 2020. 15 MoUs were signed, covering oil, bioenergy, cybersecurity, and culture.

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Other notable visits to India since 2014: - Peru’s Vice President Mercedes Aráoz in 2015 - Argentina’s President Mauricio Macri in 2019 - Paraguay’s President Santiago Peña in 2025 These visits show an increasing recognition of India’s strategic value across Latin America.

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This growing momentum is reflected in trade numbers. India Latin America trade has jumped from around $30 billion in 2014 to over $45 billion in recent years. The region is now a key source of food, energy, and minerals.

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What do we trade? India imports: Crude oil (from Venezuela, Mexico) Edible oils (from Argentina, Paraguay) Copper, lithium (from Chile, Bolivia) Wood and leather India exports: Pharmaceuticals Automobiles & parts Machinery Textiles & chemicals

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India is now a top pharma supplier to many Latin American countries. Indian IT firms have opened operations in Mexico, Brazil, and Colombia. Indian cars are increasingly visible on Latin American roads.

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But trade is just the start. Latin America matters for India’s strategic autonomy. It's a resource rich region especially in lithium and rare earths vital for India's renewable and EV ambitions. It’s also a region where India can shape global norms via soft power.

At the same time, China has made deep inroads: $450+ billion in trade, massive infrastructure investments, and political clout. India’s approach is more cautious but aims to be sustainable, built on partnership, not dependency.

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So, what’s the future of “Act Latin America”? Expect: - More embassies and political visits - Deeper trade and digital cooperation - Strategic outreach in energy, pharma, and green tech - Leveraging India’s soft power—yoga, education, culture

Paraguay’s President said it best: India is no longer a distant friend, but a close partner in shaping the 21st-century global order. The “Act Latin America” policy is India’s bridge to a region full of opportunities and mutual respect. 17/17

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