South American Indian in Nicaragua ran impressively (7)
I believe the answer is:
guarani
'south american indian' is the definition.
(indigenous South American people)
'in nicaragua ran impressively' is the wordplay.
'in' indicates the answer is hidden within the clue.
'GUARANI' is hidden in the letters of 'nicaragua ran impressively'.
(Other definitions for guarani that I've seen before include "S. Am. Indian people" , "South American Indian language" .)