Paraguay - India Trade 2023 Q4: Widening Deficit

Key Market Takeaways: Paraguay - India Trade

The bilateral trade relationship between Paraguay and India is marked by volatility and a widening deficit in Q4 2023.

• Deficit-Driven Trade: Paraguay’s $50.88M trade deficit ($68.04M imports vs. $17.16M exports) reflects heavy reliance on Indian goods amid erratic export performance.
• Resource-for-Tech Exchange: Paraguay - India trade statistics show a lopsided structure: raw materials (52.37% fats/oils) flow to India, while vehicles (14.8%) and machinery dominate imports.
• Shallow Complementarity: The partnership remains transactional, with India holding higher value-add in manufacturing and Paraguay struggling to diversify exports.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Paraguay-India Trade Trend in Q4 2023

Paraguay Export Performance: Shipments to India

• Total Volume: $17.16M in Q4 2023.
• Growth Trend & Context:
  • YoY declines dominated (-61.19% in Oct, -69.7% in Dec), except for a 24.56% rebound in November.
  • No specific trade news to explain volatility.
• Key Volatility: November saw a 376.98% MoM surge, but December collapsed by -77.12%.

Paraguay Import Performance: Sourcing from India

• Total Volume: $68.04M in Q4 2023.
• Growth Trend & Context:
  • Mixed YoY performance: +45.17% in October, followed by steep declines (-47.97% in Nov, -39.24% in Dec).
• Key Volatility: November imports plummeted -35.26% MoM, partially recovering in December (+27.6%).

Paraguay - India Trade Balance & Market Dynamics

• Net Position: Trade deficit of $50.88M (Imports $68.04M > Exports $17.16M).
• Relationship Status: Heavy reliance on Indian imports, with exports failing to offset the imbalance.

Paraguay Import Trend from India 2023 Q4 (Source: yTrade)**

Paraguay Export Trend to India 2023 Q4 (Source: yTrade)**

Get Historical Paraguay India Trade Records

Paraguay-India Top Trading Products in Q4 2023

Paraguay Export Profile: What Does Paraguay Sell to India

• Top Commodity: HS Code 15 (Animal/vegetable fats and oils) dominates with 52.37% share.
• Demand Driver: India likely uses these for industrial processing (e.g., food manufacturing, biofuels).
• Concentration: Extreme reliance on one category (HS Code 15 >50%), indicating low export diversification.

Paraguay Import Profile: What Does Paraguay Buy from India

• Top Commodity: HS Code 87 (Vehicles) leads at 14.80% share.
• Dependency Nature: Imports suggest reliance on India for manufactured goods (vehicles, machinery, plastics).

Paraguay - India Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports raw materials (fats, metals) while importing finished goods (vehicles, electronics).
• Value Chain Position: India holds higher value-add, supplying complex manufactured products (HS Codes 87, 85) versus Paraguay’s commodity-heavy exports.

Import Analysis by Product: India to Paraguay (Source: yTrade)

Export Analysis by Product: Paraguay to India (Source: yTrade)

Check Detailed Paraguay-India Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay-India trade relationship is likely to remain volatile in the near term, with Paraguay’s export performance facing continued pressure due to extreme commodity dependence and erratic demand. India’s imports from Paraguay may stabilize if industrial demand for animal/vegetable fats (HS Code 15) rebounds, but the structural trade deficit will persist unless Paraguay diversifies its export basket. Traders should anticipate fluctuating volumes, particularly in raw material shipments, while Indian finished goods (vehicles, machinery) will maintain steady inflows. The current resource-for-tech complementarity suggests long-term potential, but only if Paraguay addresses its export concentration risk.

Strategic Moves

• Diversify Export Offerings: Paraguayan exporters must reduce reliance on HS Code 15 by targeting India’s growing demand for alternative commodities (e.g., soy products, processed foods) or niche raw materials for pharmaceuticals.
• Lock in Supply Agreements: Indian importers of Paraguayan fats/oils should secure long-term contracts to mitigate price volatility, while Paraguayan buyers of Indian vehicles (HS Code 87) could negotiate bulk purchase discounts.
• Leverage Trade Facilitation: Both nations should expedite pending trade agreements to streamline customs procedures, reducing bottlenecks that exacerbate quarterly swings in bilateral trade volumes.

Frequently Asked Questions

How did Paraguay - India trade perform in 2023 Q4?

Paraguay's exports to India totaled $17.16M, with significant YoY declines, while imports from India reached $68.04M, showing mixed growth trends.

What are the top exports from Paraguay to India?

Animal/vegetable fats and oils (HS Code 15) dominate, accounting for 52.37% of Paraguay's exports to India.

What does Paraguay import from India?

Vehicles (HS Code 87) lead Paraguay's imports from India, holding a 14.80% share.

What is the trade balance between Paraguay and India?

Paraguay recorded a trade deficit of $50.88M, with imports significantly exceeding exports.