World

Panama Positions Itself as Key Entry Point for Indian Firms into Latin America

By Ramita Mishra, Banikinkar Pattanayak

New Delhi – Panama’s ambassador to India, Alonso Correa Miguel, said the country is positioning itself as a gateway for Indian businesses looking to expand into Latin America, using its ports, free‑trade zones and logistics infrastructure. Miguel told Mint that the Panama Papers scandal of April 2016, which involved 11.5 million leaked files from the Panamanian law firm Mossack Fonseca, damaged Panama’s reputation but should not define the country. He highlighted Panama’s Colón Free Trade Zone, Panama Pacifico, Tocumen and the City of Knowledge as platforms for Indian companies seeking greater access to the region. India is seeking to diversify its export destinations as trade protectionism rises, especially in the United States, and global supply chains realign. According to UNCTAD data, Panama had the highest maritime connectivity in Latin America and the Caribbean in 2026, reflecting the strategic importance of the Panama Canal. Miguel said Panama could serve as a partner and a “port in the middle ground” for India to reach Latin America and other markets. He linked India’s Viksit Bharat 2047 goal to deeper engagement with Latin America, noting that India and the 33‑country Community of Latin American and Caribbean States (CELAC) recorded $50 billion in trade in 2025‑26, while India’s total trade with the region in 2024‑25 was $39.19 billion. Panama and India’s bilateral trade rose to $553 million in 2025‑26, up 22 % from $453 million the previous year. Miguel said the Panama Papers scandal was a single‑company issue that harmed the country’s reputation unfairly and that Panama has since implemented measures to prevent similar scandals. He added that Panama has moved from being a “mockery” to one of the most profitable economies in Latin America and a strategic partner for over 150 nations. In India, a multi‑agency group was formed on 4 April 2016 to investigate Indians named in the leaks, and a 2020 initiative created dedicated Foreign Asset Investigation Units within the Income‑tax Department. In March, Minister of State for Finance Pankaj Choudhary reported that undisclosed foreign incomes and assets worth ₹14,636 crore were assessed under the Black Money Act for cases identified through the Panama, Paradise and Pandora leaks, representing more than a third of the tax and penalty demands for ₹41,257 crore raised from 1,368 assessments under the law until 31 December 2025.