Paraguay Paraguay-India - Page 20

paraguay drinking water to the world for 200 years. Environmentalist suggests, fresh water will become critical in under 20 years. Paraguay has a vast surplus of it, which along with convenient climate creates great opportunities for the production of agricultural products. The other large area of cooperation is the manufacturing of agricultural equipment. Locating operations in Paraguay could support the needs of not only a demanding internal agricultural industry but also cater to other neighbouring countries. With a skilled, young population and preferential business & taxation system, Paraguay is a correct destination for agricultural companies in South America. Paraguay is the 2nd largest exporter of stevia in the world and the production is expected to rise. There is a requirement for investment in a factory for crystallisation process, which certainly could be fulfi lled by Indian enterprises. H.E. Fleming Raul Duarte Ramos presenting his credentials to the President, Ram Nath Kovind, at Rashtrapati Bhavan, in New Delhi on February 20, 2018. Q Sh Share your views on the expanded India-MERCOSUR Preferential Trade Agreement (PTA). Pr This instrument of System of Preferences like the one in force with the European Union and the United States of America, adds to the signifi cant increase of the Paraguayan exports to the aforementioned market. The aim of this framework agreement is to expand and strengthen the existing relations between MERCOSUR and India and promote the expansion of Trade by granting reciprocal fi xed tariff preference. Thanks to PTA, trade exchange between India and Paraguay will rise further, and later lead to the Free Trade Agreement between both countries. The off er list of MERCOSUR and India contains around 500 products at present, that could be expanded to 2,000 items. The opportunities off ered by the Indian market would allow Paraguay the expansion of its production scales for exportable goods, discovery of new markets, improvement of technology, introduction of innovation based on the MERCOSUR framework agreement, which allows Paraguay to improve the entry of its products into the Asian market through India and establish economic and business cooperation. Q How do you see agriculture cooperation between the two countries? tw Paraguay has untapped opportunities in the agricultural sector. sec The country has highly fertile land and produces nine times the food it consumes. The hydropower, unique in the world strength of the country off ers a base to something very important: freshwater reserves, the Guarani aquifer, is the second largest known aquifer system in the world. It is said that this vast underground reservoir could supply fresh 20 • PARAGUAY 2019 Q How Ho is your country committed to provide a conducive environment for investors? nv The Government of Paraguay has been prioritising T innovation, connectivity, skills building and social progress, making these areas important levers for solid and lasting growth in the country. Also, large investments were also made to improve infrastructure. Paraguay off ers a stable economic & business environment and the most aff ordable low-tax solutions in the MERCOSUR region. The corporate income tax is 10%, the dividend income tax is 5% and VAT is just 10%. Moreover, many special investment attraction regimes were introduced like the new Investment Incentive Law 60/90, that provides tax exemptions for the import of capital goods and VAT exemptions for the purchase of nationally produced capital goods, for example. It is important to mention that, Paraguay accounts for the largest number of young people in the region, 70% of the population is an average 35 years. Along with the stable political situation, business-friendly environment and sustained growth rate in times of economic diffi culties around the world, Paraguay is undoubtedly a secure investment destination, that is worth considering. Q Le Leading companies like TCS, Aditya Birla Group, UPL, Ma Mahindra, Hero MotoCorp, Mahindra amongst others ha established operations in the region. Comment on have how you eye to bring in more of Indian investment to your country. Thanks to its privileged strategic geographical location and preferential taxation system, the country has already attracted numerous investors. The ease of doing business in Paraguay has engaged large industries and some of them have already shifted their operations to Paraguay. The position of the country in the region and the world is rising. Numbers