With this win, the South American side topped the pool with nine points.
Earlier, they had defeated Mali, one of the title contenders, 3-2, and New Zealand 4-2, at the D Y Patil stadium.
Giovanni Bogado (41st minute), Fernando Cardozo (43rd) scored in the first half for Paraguay, while Antonio Galeano (61st) struck their third goal after the break to seal a thumping win.
Paraguay took the lead after missing a penalty.
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Two minutes later, a back-heal from Cardozo did the trick for Paraguay, who went 2-0 up. On a cross from Blas Aroma, Cardozo displayed exceptional skills and flicked the ball with his left foot, which went past the goalie.
Bogado took a corner which was blocked by Turkey's defence, and Galeano shot outside the box, which deflected off Melih Gokcimen and went to the bottom right corner of the goal, as their keeper stood on his spot. This was Paraguay's third goal.
In the 10th minute, Turkey had a chance to take go ahead, but a header from their striker Malik Karaamhet was easily saved by Paraguay goalkeeper Diego Huesca.
In the 15th minute, off a brilliant pass, Vega shot above the bar, even as both sides seemed eager to open their account.
A small break for Paraguay helped them bring back their aggression, which was missing in the first 35 minutes of play.
The South Americans surely did not miss their star players, Alan Rodriquez and Leonardo Sanchez, as the others chipped in.
Throughout the game, Turkey had their chances but, on most occasions, their players shot above the bar or wide or it was saved by the Paraguay goalkeeper.
Disclaimer: No Business Standard Journalist was involved in creation of this content