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Guyana had remained peripheral to India’s foreign policy objectives in South America for a long period. However, increased interactions between the two countries have been witnessed in recent years, with growing energy demand in India and Guyana becoming an oil-producing country.
Illustration by The Geostrata
The enormous hydrocarbon reserves that Guyana boasts of may look attractive for India to deepen engagement, but Indian foreign policy must go beyond mere resource extraction.
This article suggests a twin-pronged approach – cooperation in energy and strategic capacity-building in agriculture, defence, healthcare and renewable energy. While India would be able to strengthen institutions in Guyana with its expertise and technology, the latter could provide energy security for the former.
This strategy considers wider developmental objectives in both countries and could serve as a template for countries coming together to address common challenges through multi-faceted engagements beyond traditional resource-based diplomacy.
UTILISING INDIAN EXPERTISE TO DEVELOP GUYANA’S GREEN ENERGY POTENTIAL
The South American country of Guyana, rich in natural resources and has suitable conditions for renewable generation, is on the verge of a new era of renewable energy production. The potential for sustainable electricity generation is lucrative and encompasses the hydro, solar, wind and biofuel fields.
The identified hydroelectric resources that can be harnessed in the country include 60 hydroelectric sites with an estimated energy capacity of 7000 MW; these are investment sectors. In addition, most regions within Guyana such as the coastal areas and water bodies, create opportunities for floating solar plants, and the interior regions are ideal for grid solar systems.
With its technological development and commitment to global climate action, India is uniquely placed to support Guyana in developing the renewable energy sector.
The Guyanese government's commitment to climate change action and green energy production is reinforced by supportive policies that should be attractive to Indian companies.
These include exemption from customs duty, zero-rated Value-Added Tax on approved items under investment agreements, and exemption from excise tax on similarly approved items.
However, for the comprehensive utilisation of these opportunities, both the Indian and Guyanese sides should make an effort to sign a bilateral double taxation treaty to foster more investment by Indian firms and promote Indian business activities in Guyana’s renewable energy market.
Such policies, together with the growing demand for green energy, provide a conducive outlook for the producers of Indian green energy to supply equipment, share their knowledge and build up the capacities of Guyanese engineers.
For India and Guyana, as leaders in the Global South climate action, such a partnership could set a powerful precedent for other nations to follow in developing renewable energy to mitigate the adverse effects of climate change.
BOOSTING GUYANA’S BIOFIELDS: INDIAN SUPPORT IN ETHANOL PRODUCTION
The synergy is not only applicable to solar power but also to biofuel generation. Guyana is gifted with large forests and woodlands, which constitute over 84% of the country’s land endowments and offer raw materials for biofuel, particularly ethanol. Guyana, through sugarcane, could significantly enhance its biofuel industry.
This collaboration could involve technology transfer, capacity building, and joint research to adapt India's methods to Guyana's conditions, potentially opening up new markets for ethanol-based biofuels and fostering a productive partnership in renewable energy development. This will only be streamlined with Guyana’s active participation in Indian initiatives like the Global Biofuels Alliance launched in 2023.
With India’s IT strength coupled with Guyana’s natural resource endowment, this cooperation could spur a revolution in green energy in Guyana as the nation aims to become a regional powerhouse in sustainable green energy production. Such collaboration would benefit energy security and address the need to fight climate change in the global environment.
BRIDGING HEALTHCARE GAPS: INDIA’S SUPPORT FOR GUYANA
The enhancement of the healthcare ties between India and Guyana appears as a critical avenue through which continued enhancement of the populace’s well-being can be nurtured, contributing to sustained development in the nation.
Some of the key issues in Guyana’s healthcare sector include inadequate provision of quality health services and a scarcity of human resources in the sector.
India's indirect engagement in Guyana's healthcare sector through UN capacity-building programs, such as training healthcare workers in adolescent sexual and reproductive health, has already demonstrated the potential for impactful collaboration.
However, these kinds of outreach have also highlighted India’s more significant requirement for direct investment and outreach by India in the healthcare sector. Assisted by its rapidly growing healthcare sector, India possesses the potential to help fill the gaps in Guyana’s healthcare.
Furthermore, India could extend offers of scholarships as well as exchange programs to Guyana medical students and practising doctors for knowledge sharing and skill development. Such collaborative research work in tropical diseases and health disorders, particularly those affecting Guyana, could help to serve the needs of the country’s population and advance the worldwide pool of medical information.
Connected with the Indian specialists and relying on India’s extensive knowledge in the field of healthcare, this partnership may significantly change the existing picture of the healthcare system in Guyana by improving access to high-quality medical services, addressing the shortage of qualified medical personnel, and enhancing the overall health and well-being of the Guyanese population.
DEFENSE COLLABORATION: INDIA AND GUYANA STENGTHENING SECURITY
Military and defence relations between India and Guyana are two of the areas that have the potential to enhance the security and defence system in both countries while at the same time boosting the diplomatic relations between the two countries. Guyana’s developing interest in buying military hardware from India, such as Dornier aircraft, is a new trend in defence imports.
This newly developing synergy provides Guyana with an opportunity to seek sources for the procurement of its military equipment apart from traditional sources such as the United States while at the same time benefiting from India’s image as an affordable and credible source for all defence needs.
The capability of India to produce cost-effective yet efficient military equipment is especially beneficial to Guyana, a developing nation with limited defence appropriations. This cooperation is not confined only to weapons; it also encompasses comprehensive training and capacity-building initiatives for Guyanese defence forces.
Furthermore, apart from the construction of Guyana's defence infrastructure and technological development, India can also help the country stabilise the region, resulting in a more favourable economic and social development.
ENHANCING GUYANA’S AGRICULTURE WITH INDIA’S ASSISTANCE
Agriculture is one of the sectors that has received increased investments from the Guyanese government and has seen expansion into several sub-sectors in 2023. Agriculture and allied industries such as forestry and fishing are critical, with a 7% annual growth rate, as the country seeks to fulfil domestic requirements while simultaneously becoming an exporter within the CARICOM.
Guyana's agricultural sector is experiencing growth, with sugar production up 28% and rice up 7%. As a global leader in agricultural technology, India can offer valuable expertise in best practices while exploring opportunities for exports such as fertilisers and equipment.
Indian company UPL has shown interest in providing agricultural inputs to Guyana, including initiatives like setting up Millets Model Farm to enhance productivity. India possesses specific knowledge that can help rejuvenate the sugar industry in Guyana.
The introduction of techniques of ethanol production, which are now practised in compliance with climate change action, is essential to Guyana for the diversification of agricultural products and increasing the economy's resilience.
Furthermore, with India being one of the largest exporters of drip irrigation systems, the country is poised to deal with the water management aspects in Guyana, especially for water-demanding crops such as rice.
Drip irrigation effectively manages water, enhances yield, and encourages resource-conserving measures. India’s emphasis on capacity enhancement and technology sharing can assist Guyanese farmers and agricultural specialists in implementing innovations and standard practices.
Such cooperation also enhances the relations between both countries and supports regional objectives and policies of food security and sustainable development.
The bilateral relationship between India and Guyana could be one of the most refined in the twenty-first century, in which the resource-based relationship is simultaneously engraved with a broader developmental strategy of human and institutional capacity.
Such a broad-spectrum involvement in hydrocarbons, renewable power, health care provision, military deals, and agriculture illustrates a complex and mature engagement concerning development issues in an integrated manner.
Both India and Guyana would firmly benefit from the proposed synergy of the technological prowess of India and the natural resources of Guyana. This approach provides the basis for the improvement of relations between India and the countries of the Caribbean Community(CARICOM).
Therefore, India should leverage this opportunity, especially with Guyana holding the presidency seat of the CARICOM community, to expand its footprint in the Caribbean region, opening doors for increased cooperation across various sectors.
This expanded engagement could significantly benefit Indian businesses, providing new export markets, investment opportunities, and resource access. In the long run, this strategic focus on the Caribbean enhances India’s international standing. It helps the region to diversify its economy and develop effective South-South modes of cooperation in the face of new global challenges.
BY ADITYA MOHAN
CENTRE FOR DIPLOMACY & INNOVATION
TEAM GEOSTRATA
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