India's view of the world · A factual referenceLast updated 12 May 2026 · Edition 04
COUNTRY RELATIONSHIP · PANAMA
India & Panama
PANAMA CANALPHARMACEUTICAL EXPORTSMARITIME SHIPPING HUBSHIP REGISTRY
India and Panama's relationship is defined above all by the Panama Canal — one of the world's most critical maritime chokepoints, through which a significant volume of India's exports to the Americas and Europe transits. Panama is also the world's largest ship registry, and hundreds of Indian-crewed merchant vessels sail under the Panamanian flag. Beyond maritime, India exports significant volumes of pharmaceuticals and manufactures to Panama, and Indian IT companies have established regional Latin American operations in Panama City's services hub.
COOPERATION AREAS
Where India and Panama actually work together
4 active areas of cooperation, as of July 2026. Click any card for the full brief.
TRADE & INVESTMENT
By the numbers
All figures approximate FY 2023–24. Source: DGFT, Ministry of Commerce. Panama re-exports significant volumes of Indian goods to Central American and Caribbean markets through the Colón Free Zone; full supply-chain value is higher than bilateral statistics suggest.
$3.2bn
Total bilateral trade in goods
$2.9bn
India exports to country
$0.3bn
India imports from country
Trade trajectory · USD bn
$3.2bnin FY24 · click a bar to compare years
TOP TRADED ITEMS
AGREEMENTS & MILESTONES
The relationship since 1958, in 6 dates
CURRENT STATE
Where things stand, 2026
The India-Panama relationship is functionally important but relatively quiet diplomatically. The Panama Canal remains India's most critical engagement point: Canal efficiency and continuity directly affect Indian export costs and competitiveness in American markets. Pharmaceutical trade and the Colón Free Zone re-export function are stable commercial channels. Indian seafarer welfare on Panama-flagged vessels is an active consular priority. No major bilateral initiative is currently under negotiation.
SIGNALS TO WATCH
On track / positive momentum
In progress / worth watching
Stalled or facing headwinds
Not yet started / unclear
QUICK FACTS
CapitalPanama City
Population4.4 million
RegionAmericas
Diplomatic tiesSince 1958
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