On June 2nd, 2025 India Prime Minister Narendra Modi met with Santiago Pena Palacios President of Paraguay. This high level meeting was held at Hyderabad House in New Delhi.
Objective: It was aimed at enhancing cooperation in various sectors such as energy, digital technology, critical minerals, agriculture, health, defence and condemnation of terrorism. Along with this there was an emphasis on cooperation on Global South, Economic Ties and Future Plans.
About Paraguay:
Geography
It is a landlocked country bordered by Uruguay, Brazil, Bolivia and Argentina in South America.
Its capital is Asuncion which was founded by Spanish conquistador Juan de Salazar in 1537.
It has vulnerable weather conditions which impacts its agriculture.
Economy
It has 3.2%annual growth rate of GDP.
Having low employment rate of 5.6% in 2023, it has high poverty with 19% of its population below international poverty line.
Mercosur
The Common market of South America that aims to promote economic integration and cooperation among member countries like Argentina, Brazil, Paraguay and Uruguay along with its associate members such as Chile, Colombia, Ecuador, Guyana, Peru and Suriname.
Polity
It has Presidential form of government and have a bicameral legislature.
Colorado Party is dominant in Politics. It has Multi-party system.
Comparison of Mercosur with SAARC
| S. No. | Mercosur | SAARC |
| 1. | 4 member Countries(Uruguay, Brazil, Bolivia, and Argentina) along with 6 associate members(Chile, Peru, Colombia, Ecuador Guyana and Suriname) | 7 Member countries (India, Pakistan, Nepal, Sri Lanka, Maldives, Nepal, Bhutan and Bangladesh ) |
| 2. | It focuses on economic integration. | It focuses on regional cooperation. |
| 3. | It is economic oriented that aims to strengthen its economic ties. | It is border oriented aims to settle peace with border negotiations. |