The distance between India and Guyana is more than 14,600 kilometerss. One is located in Asia and the other in South America. The first is the most populated country in the world with more than 1.4 billion inhabitants. The second, on the contrary, is one of the countries with the fewest inhabitants in the world (about 800,000). However, both countries have much more to do with each other than what appears at first glance. It is precisely this nexus that has been trying for some time to take advantage of India to achieve a long-term contract that gives it a certain preference to monopolize the most precious treasure of little Guyana: oil.
Guyana has become a real star in the oil markets. Its production boom in a short period of time has turned this small country that has been border with Venezuela, Brazil and Suriname in one of the great producers of new oil. In 2019, Guyana produced zero barrels of crude oil. In 2024 it is pumping more than 640,000 barrels per day, almost one barrel per inhabitant. This has not gone unnoticed by countries that are hungry for crude oil (the large importers) such as India, which after decades without officially visiting Guyana is now trying to strengthen ties to achieve a reliable source of oil. India is one of the largest importers of crude oil globally, which is leading the country to seek and diversify its oil sources intensively. The most populous country in the world imports almost five million barrels every day.
To strengthen these ties and try to achieve a preferential contract (something they have been trying to do since the beginning of the year), Narendra Modi, Prime Minister of India, has been visiting Guyana for two days this week to meet with Mohamed Irfaan Ali, president of the Caribbean country. Modi has admitted that this was the first visit by an Indian prime minister to Guyana in 56 years, an important milestone in the two countries’ bilateral relations. Modi wanted to soften the hearts of Guyanese and their authorities at a press conference, declaring that “I came here as an ordinary citizen 24 years ago and during that visit, I got a glimpse of how historic and deep the relations between India and Guyana were. It is a matter of good luck for me to return here as prime minister. During today’s meeting, we identified several new initiatives to strengthen our cooperation. We will make continuous efforts to expand our cooperation, including trade and economic cooperation.” What has brought the prime minister of one of the world’s greatest powers to an ‘insignificant’ country? What is the nexus that allows Modi to ask for a closed and preferential contract for oil to Guyana? What was Modi doing 24 years ago visiting Guyana as a private citizen?
The curious link: they are the same town
Well, the relationship or connection between both countries is the following: Guyana is a ‘little India’ in South America. The population of Guyana is very diverse, but Indians predominate: 39.8% of the population is of East Indian origin30% are of African origin, 19.9% are multiracial, 10.5% are Amerindian and 0.5% are of other origins, mostly Chinese and white (especially Dutch, Portuguese and English) . In the midst of all this amalgamation of ethnicities, the official language is english. All in all, it seems logical that the religious distribution of Guyanese is dominated by Hindus, who make up 28.4% of the population that has a belief. Pentecostals (an evangelical movement) make up 16.9%, Roman Catholics 8.1%, Muslims 7.2% and Anglicans are 6.9%… other Christian denominations 20.5% .
Thus, the Indo-Guyanese form the largest ethnic group in the country and represent approximately two-fifths of the population. Why are there so many Indians in Guyana? The ancestors of today’s Indo-Guyanese arrived primarily as indentured laborers from India to replace Africans in plantation work in colonial times. Afro-Guyanese (Guyanese of African descent) left the plantations en masse after full emancipation in 1838 to become independent farmers or city dwellers. So the British started bringing in Indian citizens (India was also a British colony) to take the place of the Africans.
Although the situation has changed quite a bit and the country is much richer since oil production began, today, Indo-Guyans are still the mainstay (the labor force) of the large plantations and many are independent farmers and landowners, although It is also worth noting that they have had good results in commerce and are well represented among all professions.
From a very young age, Narendra Modi has been a student of Indian culture in all its spheres. This curiosity was what led him to travel to Guyana in 2000 to study and contemplate first-hand the cultural ties between both nations, separated by thousands of kilometers, but united by religion and ethnicity.
Guyana refuses to hand over its oil
Despite everything, Guyana has not wanted to close any contract that goes beyond what has already been agreed (Guyana already sells part of its crude oil to India), although they have created a kind of framework to deepen future relations. The two countries signed bilateral agreements that also cover the health, finance, agriculture, energy and technology sectors. “We also discussed collaboration in infrastructure, education, human capital development and the continued diversification of our economies,” added the Guyanese president.
For his part, Modi has assured that Over the years India has been contributing to the socio-economic development of Guyana and, by extension, the region in general. He noted that given the new possibilities in the area for the energy sector, due to Guyana’s large oil reserves, both countries can “move forward together as natural partners.” “Guyana will play an important role in India’s energy security and, in this regard, we will create a roadmap for a long-term partnership,” he stressed.
Modi also noted that he is happy that Guyana has joined the initiatives initiated by his country, such as the International Solar Alliance and the Coalition for Disaster Resilience and Infrastructure. “These walls help strengthen the efforts being made around the world to move towards a green and sustainable future,” he said. Despite all efforts to deceive Guyana, Modi finally returns to India without the agreement he wanted and has been longing for since the beginning of the year, according to S&P Global.
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