Why in news?

Prime Minister Narendra Modi paid a visit to the small Caribbean country of Guyana, the first visit by an Indian PM in 56 years. He received a warm welcome in Guyana as President Irfan Ali broke the protocol to receive PM Modi at the airport.

During this visit, PM Modi also co-chaired the second India-CARICOM Summit alongside Grenada's PM (who is the current Chair of CARICOM) and other CARICOM leaders.

What’s in today’s article?

• CARICOM
• Why PM Modi visited Guyana?
• Key Highlights of the visit

Caribbean Community (CARICOM)

• About
  • CARICOM is a regional organization established in 1973 under the Treaty of Chaguaramas.
  • It aims to promote economic integration, shared foreign policy, and functional cooperation among member states while ensuring the sustainable development of the region.
  • Stretching from The Bahamas in the north to Suriname and Guyana in South America, CARICOM comprises states that are considered developing countries.
  • Except for Belize, in Central America and Guyana and Suriname in South America, all Members and Associate Members are island states.
• Members
  • It is a is a grouping of   twenty-one countries: fifteen Member States and six Associate Members.
• Pillars of Integration:
  • Economic Integration: Focuses on creating a single market and economy through the Caribbean Single Market and Economy (CSME).
  • Foreign Policy Coordination: Ensures member states speak with one voice on international issues.
  • Human and Social Development: Promotes education, health, youth development, and gender equality across the region.
  • Security Cooperation: Aims to address common challenges like crime, border security, and disaster management.

Why PM Modi visited Guyana?

• Strengthening Historical and Cultural Ties
  • Guyana, home to one of the oldest Indian diasporas, has a population of approximately 3,20,000 people of Indian origin, constituting 43.5% of the country's total population.
• Energy Security and Hydrocarbon Cooperation
  • Guyana is emerging as a global oil hub, expected to surpass Venezuela in oil production by 2026.
  • With massive reserves and rapid GDP growth driven by oil discoveries, Guyana offers India a crucial opportunity to diversify its crude oil imports.
• Expanding Defence Partnerships
  • India has strengthened Guyana’s defence capabilities by supplying Dornier 228 planes and offering a Line of Credit for the purchase of patrol vehicles, radars etc.
    • This marks India’s first-ever defence Line of Credit with a Caribbean nation.
  • Guyana’s growing defence market aligns with India’s strategic and economic interests.
• Enhancing Trade and Economic Cooperation
  • India is partnering with Guyana in diverse sectors, including agriculture, biofuels, IT, and pharmaceuticals. Key contributions include:
    • Building critical infrastructure like the National Cricket Stadium and solar traffic lights.
    • Supporting projects such as regional hospital upgrades, road linkages, and ocean-going vessels.
    • Promoting bilateral trade, which remains low but shows positive growth potential.
• Competing with China’s Influence
• Guyana’s strategic location and rich resources have attracted significant Chinese investments in infrastructure under the Belt and Road Initiative.
• India is countering this influence by committing to infrastructure projects such as a $100 million road project in Georgetown.
• Unlike China, India’s approach focuses on local engagement and long-term partnerships, which are better received by Guyana's population.
• Global South and Strategic Alliances
  • PM Modi’s visit reflects India’s broader strategy to enhance ties with smaller countries as part of its Global South agenda.
  • Guyana’s economic potential, driven by oil wealth, makes it a pivotal partner in this vision.

Key highlights of the visit

• PM Modi conferred with The Order of Excellence of Guyana
  • President of Guyana conferred upon PM Modi the highest national award of Guyana, "The Order of Excellence”​.
    • He became only the fourth foreign leader to be conferred with the highest National award of Guyana.
• Agreements Across Key Sectors
  • India and Guyana signed 10 Memoranda of Understanding (MoUs) to deepen cooperation in various sectors. These include:
    • Health and Pharmaceuticals: Collaboration on regulation and supply of affordable medicines, including to CARICOM countries.
      • India agreed to establish a Jan Ausadhi Kendra in Guyana to improve access to affordable medicines.
    • Hydrocarbons: Cooperation in crude sourcing, natural gas, infrastructure development, and the entire hydrocarbon value chain.
    • Agriculture: Joint activities, R&D, exchange of information and personnel, and food security initiatives.
      • Cooperation in agriculture was also expanded, with India contributing millet seeds to support Guyana’s food security.
    • Digital Transformation: Capacity building, training, exchange of best practices, and public official collaborations.
    • Banking and Payments: Deployment of India’s UPI-like real-time payment system in Guyana.
• Defence and Capacity Building
• India is committed to skill development and capacity building in Guyana, especially in defence.
  • Earlier this year, India had gifted two Dornier aircraft to Guyana.
• PM Modi emphasized cooperation in infrastructure, energy, and food security, highlighting India’s ongoing support for Guyana’s growth.
• Collaboration in New Areas
  • The leaders identified new areas of cooperation, including:
    • Education and Human Capital Development
    • Technology Transfer and Food Processing
    • Ayurvedic Medicine and Vaccine Manufacturing
• Symbolic Initiatives
  • PM participated in the symbolic planting of a sapling under the Ek Ped Ma Ke Naam