Panama Courts Indian Businesses for Trade Expansion
Panama is positioning its logistics hubs to attract greater investment from Indian firms seeking entry into Latin America.
Updated on Oct. 15, 2026 in International Trade
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Panama is actively courting Indian companies, promoting its logistics platforms to bolster bilateral economic ties. The push comes as the nations recorded a total trade value of $553 million during the 2025-26 period.
Why it matters
India is looking to diversify its export markets and reduce reliance on a few large regions, while Panama aims to strengthen its reputation and economic standing. This strategy follows Panama's efforts to move past the 2016 Panama Papers scandal, which involved 11.5 million leaked files from Mossack Fonseca.
Trade between India and Panama reached $553 million in 2025-26, supported by Panama's leading maritime connectivity in Latin America and the Caribbean. India-Latin America regional trade grew to $50 billion in the same period.
The players
Mossack Fonseca
This former law firm was the center of the 2016 Panama Papers scandal regarding the use of offshore financial structures.
Income-tax Department
This Indian government agency manages tax enforcement and created dedicated units to investigate undisclosed foreign assets.
The details
Panama is highlighting the Colón Free Trade Zone, Panama Pacifico, Tocumen, and the City of Knowledge as primary platforms for Indian logistics. Meanwhile, India continues to manage tax investigations related to offshore leaks, having assessed ₹14,636 crore in undisclosed foreign income under the Black Money Act.
Timeline
April 4, 2016: India formed a multi-agency group to investigate offshore leaks.
2020: India established Foreign Asset Investigation Units.
2024-25: India-Latin America and Caribbean trade totaled $39.19 billion.
2025-26: Trade between India and Panama reached $553 million.
Market Dynamics
Panama is actively working to move past the economic reputation issues created by the 2016 Panama Papers scandal. By leveraging its maritime connectivity, the country seeks to integrate itself into the broader macroeconomic growth cycle of Indian trade expansion.
Companies looking for new logistics hubs in Latin America may find Panama's specific free trade zones increasingly relevant for market entry. Investors should note that India's ongoing scrutiny of offshore assets remains a critical factor for cross-border financial compliance.
The takeaway
Panama is using its strategic geographic position to rebuild its economic reputation through targeted logistics partnerships. Indian firms looking to expand their global footprint may find these specific free trade zones useful for accessing the Latin American market.
Further reading
For more on evolving global commercial ties, see our coverage of International Trade.
Source note: This article includes information reported by Mint.
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