India Deepens Ties With Central American Integration System
India’s engagement with the Central American Integration System (SICA) has gained momentum in 2025. At the India-SICA Foreign Minister’s Meeting in New York, External Affairs Minister S Jaishankar brought into light expanding cooperation in trade, digital payments, and sustainable development. Indian firms are increasingly interested in investing in agriculture, renewable energy, pharmaceuticals, and IT sectors across SICA economies. The meeting reaffirmed India’s commitment to South-South cooperation with Central America.
Growing Economic Cooperation
India’s economic ties with SICA countries have strengthened over the past decade. Indian companies are exploring opportunities in key sectors like agriculture and renewable energy, which align with the development priorities of Central America. This growing partnership is supported by high-level visits and diplomatic exchanges, reflecting mutual interest in encouraging sustainable growth.
Digital Payments and UPI Integration
India’s Unified Payments Interface (UPI) stands out as a transformative digital payments system. It enables seamless, real-time, secure, and low-cost transactions. Over half of the world’s cashless payments occur in India through UPI. India has offered to adapt this technology for SICA economies to modernise their payment infrastructure and boost financial inclusion.
Political Dialogue and Multilateral Engagement
The Mechanism for Political Dialogue and Cooperation, established in 2023, has reinforced ties between India and SICA. Regular meetings facilitate exchange of perspectives on development, climate action, and global challenges. India’s External Affairs Minister engaged with multiple SICA foreign ministers and other global leaders during the UN General Assembly, signalling India’s diplomatic outreach.
South-South Cooperation Framework
India views SICA as a vital partner in South-South cooperation. Both regions share similar challenges such as poverty, development deficits, and climate change impacts. Collaborative efforts aim to address these issues through joint initiatives in food security, health, renewable energy, and digital transformation, promoting inclusive and sustainable development.
Future Prospects and Challenges
Despite geopolitical and economic uncertainties, India remains optimistic about deepening relations with Central America. Visits by Indian officials to SICA countries have laid the groundwork for enhanced cooperation. India plans further engagement to explore trade, investment, and technology transfer opportunities, while supporting Central America’s growth and resilience.
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