Guyana, the only English-speaking country in South America, assumes significance for India due to many factors—the presence of a huge Indian diaspora, new-found oil resources and historically friendly relations between the two countries. PM Narendra Modi’s visit to Guyana comes just as its per capita income has skyrocketed.
The largest ethnic group in the country are those of Indian origin. They make up roughly 40 per cent of the population. A large number of Guyanese Indians also live in countries like the USA and Canada. Despite the enormous distance that separates them from their mother country, their quest to follow and practice the traditional Indian culture and arts is amazing. The Swami Vivekananda Indian Cultural Centre in Georgetown, which is the oldest centre abroad established by ICCR, plays a catalytic role in furthering cultural relations between the two countries. The centre has classes for traditional Indian dances, music and yoga. It also sends Guyanese to India under various scholarships. The Indian Mission in Georgetown organises Phagwah celebrations every year—the ethnic group’s version of Holi.
The state visit by PM Modi, the first by an Indian PM in 56 years, will bring the two countries much closer on many fronts. In the last two years, many high-level visits to India by Guyanese Executive President Irfaan Ali, Vice President Bharrat Jagdeo and Prime Minister Brigadier (Retired) Mark Phillips have taken place, creating a conducive environment for taking cooperation forward.
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Increasing value through collaboration
One of the important areas of cooperation is in the development partnership assistance given to Guyana in the areas of defence, road infrastructure, health care, supply of an ocean-going ferry, solar power, water drainage pumps, etc. So far, $150 million has been provided by India to Guyana as concessional credit.
Guyana is still a primary economy and is dominated by the so-called six sisters–rice, cane sugar, gold, bauxite, fish and timber.
The Guyana Sugar Corporation sugar estates were available for sale and Indian companies looking to buy it can profitably use the world-famous ‘Demerara’ sugar brand, apart from manufacturing readily marketable by-products such as ethanol, sugar paper, etc. Indian companies also have the opportunity to employ large-scale contract farming for producing much-needed oil seeds, pulses, etc, as millions of acres of virgin lands are available in the interior savannah regions for cultivation.
Potential opportunities lie in introducing paddy varieties. They could fetch high returns from North America, where a large number of NRIs live.
Guyana, known as the “Land of Many Waters”, is criss-crossed by innumerable drainage canals and rivers. These water bodies offer opportunities for Indian companies in both freshwater and saltwater aquaculture of desired species, which have immense export potential.
Annually, an average of 15,500 kg of gold Dore bars are produced in Guyana and the entire production finds its way out of the country. With the Gas to Energy project coming up on the West Bank easing the energy situation, Indian companies have the opportunity to not only set up gold refineries but also enhance the value manifold by setting up jewellery manufacturing units, for which there is a market in North America.
Both governments can collaborate in these areas by facilitating joint partnerships between private companies from their countries.
Timber is another area which has vast potential for cooperation. Guyana exports a large quantity of logs without any value addition. Some Indian companies are already importing wood in this form. The Guyana Forestry Commission and the Institute of Wood Science and Technology, Bengaluru could work together and explore the different ways to create value addition.
The emerging area of cooperation is the oil and gas sector with Guyana’s production of crude oil expected to reach a huge capacity of 1.3 million barrels per day by 2027. Opportunities are available for setting up downstream units including setting up a mini-refinery in Guyana.
Given the personal rapport between the Guyanese President, Vice President and PM Modi, both countries could see much stronger bilateral relations in the near future for their mutual benefit, particularly on the above economic fronts.
V Mahalingam was the Indian High Commissioner to Guyana from 2014 to 2019. Views are personal.
(Edited by Theres Sudeep)