New Delhi: With tensions brewing over US staking claims on the Panama Canal, citing Chinese influence, India has signed an important umbrella agreement with the central American country to implement, for the first time, Quick Impact Projects (QIP). The agreement was signed on Wednesday by India’s Ambassador to Panama, Costa Rica, and Nicaragua, Dr. Sumit Seth, and Panama’s Foreign Minister, Javier Martínez-Acha Vásquez, in Panama City.

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The statement released by India said, “The Government of India will provide grant assistance for each QIP under this framework, ensuring immediate and visible benefits for the people of Panama.” The memorandum of understanding (MoU) aims to deliver ‘tangible’ benefits to local communities in Panama by focusing on key areas such as physical infrastructure—roads and community centres—as well as social infrastructure, including education, healthcare, and sanitation.

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The initiative shows India’s active role in supporting global development through partnerships tailored to the needs of local communities. India has reached out to Panama in the past as well, including in 2020, when the Indian government donated a medical aid package for COVID-related medical assistance to Panama. India also upgraded an IT centre in the country. 

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The India statement further pointed out, “By prioritising impactful and time-sensitive projects, the agreement reflects India’s commitment to fostering stronger ties with Panama and enhancing its socio-economic infrastructure.”

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The Panamanian economy continues to be mainly services sector-oriented and heavily relies on the Panama Canal, tourism inflows, and banking transactions. India and Panama have had historic relations, including Indians going to Panama in the 20th century to help build the Panama Canal.

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