Dear Editor,
Guyana is honoured to welcome India’s Prime Minister Narendra Modi, who is visiting for two days from November 20, 2024—a historic occasion marking the first time in recent memory that the leader of a major global economy has set foot on Guyanese soil. This remarkable visit is a testament to the dedication and strategic vision of President Dr. Irfaan Ali’s government, whose efforts have brought about this significant diplomatic milestone. Prime Minister Modi support for Covid 19 vaccine was a great generous gesture to Guyana and other Caribbean countries during the pandemic crisis. The ties between Guyana and India run deep, encompassing rich historical, political, economic, and cultural connections.
With India poised to become the world’s third-largest economy, it has achieved notable progress under PM Modi’s leadership, consistently recording a growth rate of 6-7%—a remarkable feat among developing nations. For Guyana, this visit presents a unique opportunity to identify areas of collaboration that can serve the mutual interests of both nations. Known for his commitment to the global Indian diaspora, PM Modi’s visit embodies the spirit of partnership and goodwill. Guyana, with its strong linkage to India can draw inspiration from this connection and explore pathways for deeper cooperation. With this historic backdrop, we can look towards establishing meaningful partnerships.
India stands as the world’s largest sugar producer, with an impressive annual output of 36 to 37 million tonnes. In contrast, GuySuCo, Guyana’s own sugar corporation, currently faces various financial, technical, managerial, and operational challenges. Even with subvention of GY$15B in 2023, GuySuCo has reported loss of GY$4.7B. With India’s advancements in sugar production technology and its effective utilization of byproducts, the country offers a valuable model for reviving GuySuCo’s operations. Notably, Indian companies such as Bannari Amman, KCP Sugar and EID Parry serve as benchmarks in developing innovative sugar production methods, including ethanol production, power generation from bagasse, and crafting sustainable products like paper. India is also having companies like Triveni Engineering and Walchand Nagar Industries Ltd having more than 75 years of experience in addressing and solving mechanical engineering problems of sugar factories. These two companies can provide immense technical support to GuySuCo.
Guyana could explore a line of credit from India specifically aimed at the rehabilitation of GuySuCo. This support could cover technical, financial, and managerial aspects, enabling Guyana to implement effective solutions and regain competitiveness in the sugar industry. A delegation of Indian experts in sugar technology, finance, and management could conduct a comprehensive diagnostic study of GuySuCo, culminating in a robust rehabilitation plan tailored to Guyana’s needs. With India’s guidance and expertise, GuySuCo has the potential to become a thriving enterprise once again.
Guyana holds immense potential in agriculture, an area emphasized by President Ali since he took office in 2020. With vast, unused lands and a favourable climate, Guyana is well-positioned to expand its agricultural output. By partnering with India, Guyana can benefit from expertise in organic and contract farming, as well as in building essential infrastructure for agriculture in the country’s interior. India has also achieved remarkable success in fisheries and aquaculture, becoming one of the world’s leaders in freshwater aquaculture alongside countries like Ecuador and Vietnam. With its abundance of land and freshwater resources, Guyana could tap into this expertise to develop its own aquaculture sector. By adopting India’s proven strategies, Guyana can not only diversify its agricultural output but also enhance food security and create sustainable economic opportunities.
Guyana’s economy is experiencing extraordinary growth, with GDP rising by an estimated 40% annually. As the nation moves toward achieving an oil production target of 1.2 million barrels per day by 2028, Guyana’s financial sector will face unprecedented expansion and new demands. Although our financial sector is currently stable, there are significant gaps in specialized financial services, particularly in wealth management, money market instruments, mutual funds, and capital market development. Furthermore, the approach of our regulatory bodies has traditionally been more focused on oversight than on fostering sectoral growth, resulting in hardly any Initial Public Offerings (IPOs) and constrained financial intermediation over the past decade.
In this critical phase of growth, Guyana could greatly benefit from India’s technical and managerial expertise in developing robust financial services. India has a proven track record in wealth management, mutual funds, and capital markets, driven by regulatory frameworks that balance prudence with growth. Indian institutions can share best practices in creating platforms for money market funds, structuring mutual funds, and nurturing a more dynamic capital market. Through collaboration in these areas, Guyana can enhance its financial infrastructure, encourage greater investment, and support sustainable economic development. This partnership with India could be transformative, enabling Guyana to meet the demands of its rapidly evolving economy.
Guyana is rich in natural resources, with sizable outputs of gold, diamonds, and timber. However, much of our production is currently exported as raw material, limiting the economic value derived from these resources. India, home to one of the largest global markets for gold and diamonds, has developed world-class infrastructure for the processing and refining of these materials, transforming them into high-value products such as jewelry and precision-cut diamonds. The country’s expertise in adding value to raw materials provides an ideal model for Guyana.
By establishing partnerships with India in value-added processing for gold, diamond, and timber, Guyana could significantly enhance its production capacity and generate new private investment opportunities. Such cooperation could see the establishment of processing facilities, jewelry manufacturing plants, and artisanal crafting workshops locally, creating considerable employment opportunities and boosting export revenue from finished goods rather than raw materials. This shift to value-added exports would strengthen Guyana’s position in the global market and ensure more sustainable economic growth for the sector.
In conclusion, Prime Minister Modi’s visit to Guyana represents a milestone in the growing relationship between our two nations. With India’s expertise in agriculture, finance, industrial operations, and value-added processing, Guyana stands to benefit immensely from targeted collaborations in these sectors. Through enhanced partnerships, Guyana can transform its natural and financial resources, strengthen its economic foundation, and unlock new pathways for sustainable growth. The potential for shared success is vast, and as we welcome Prime Minister Modi, we look forward to a future where Guyana and India grow and prosper together, united by our shared history and ambitious vision for development.
Sincerely,
Pravinchandra Dave (Mr.)
Former Chairman – GuySuCo
Former Chief Executive Officer – Demerara Bank
Limited