Art, Music, Dance and Business
Paraguay out to reach the world



Paraguay, the landlocked nation in South America, and India have had diplomatic ties for the past 50 years. However, it was in 2006 that Paraguay opened its Embassy in New Delhi. The first Ambassador to India is Mr. Genaro Vicente Pappalardo who is planning high level political visits to India to promote ties between the two countries. In the year Paraguay celebrates 200 years of independence, the Ambassador, Mr. Pappalardo spoke to THE BLUE MOON Editor, Amit Mittal giving an insight into his country’s economic growth. Some excerpts:

“In 2006 the trade between India and Paraguay was around USD 20 million, four years later it has gone up to USD 140 million with soya bean oil being the main product being exported to India. We are number four exporter of soya in the region. We also export some leather and wood to India. We have 7 million hectares of land under cultivation. All our produce is purchased by multi-national companies. We are also exporting beef to Europe and Asia. We stand at number 2 in production of beef in the region. We have very good agro business. The economy is agriculture based. Our growth rate in 2010 was 9%, an impressive increase from 3 – 4 % in the past. This is expected to go up to 14% in near future. ”

You have over 90 % literacy in Paraguay, why then poverty is still prevalent?

“We are working on new projects. Eighty per cent of our population is young. Our population is half that of Delhi. We do not have big industry, beverage is the main one. We are also producing turbines now and ‘Leopard’ motorbikes. We have extra electricity. On the Itaipu Hydroelectric Project, which we are sharing with Brazil, we have a total of 18 turbines working. Of these nine turbines generate electricity for Brazil and the rest nine for us, but we require the electricity produced by only one, the excess is sold.”

What does Paraguay import from India? Are there joint ventures between companies of both sides? Are there any investments by Indian investors in Paraguay?

“We are importing agro-chemicals and pharmaceuticals from India. The pharmaceutical industry is very powerful in Paraguay. Many Indian companies are working together with Paraguay companies, and although there are no joint ventures or any direct investments by Indian companies at the moment we are working on several projects. In Paraguay most of the large companies are privately owned however there still remain some key State-owned ones.”

Is that correct that there have been political uncertainties in Paraguay leading to slow growth in trade?

“We are a very peaceful country; even the demonstrations held in Paraguay are peaceful. After 1989 we have had regular elections every five years. The party now in power used to be the opposition earlier. Our private sector has encouraged growth.”

Paraguay has peaceful neighbours, why then it needs a strong army making it compulsory for students to go in for military service?

“It used to be so earlier. Military training was compulsory for all students. However, things are different now; anybody who does not wish to go in for the service can opt out.”

We hear about Latin American nations swaying the world with their music, dance and carnivals; what is famous in Paraguay?

“Culture is a big window to connect to other countries. We are coming up with a number of cultural projects in India. We have the famous Polka – the happy music and Guarania, the romantic music. Paraguayans love music. They are a happy people, they are good hosts and love to have foreign visitors.”

Paraguay must be having places of tourist interest, do you have Indians traveling to Paraguay?

“We are in talks with the Secretary of Tourism in India to promote tourism between the two countries; working together to make bridges. We have the cheapest hotels. A 5-star hotel costs as much as USD 100 a day. We have Indian visitors going to Paraguay with about 80% of them being business people. We have had 20 business delegations to Paraguay. There are 500 Indian families living in Paraguay and they often have visitors. We have an airline TAM together with Brazil.”

Paraguay river seems to be giving an important contribution to the transport system in the country.

“Yes, the river is used for transportation since we are a landlocked country. We do use highways and railways, but our railway system is too old. Paraguay was the first country in this region to have started railways in 1840 when we got it from Britain. Now we are looking to modernizing the railways, maybe with Indian cooperation.”

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