Why Indian PM Narendra Modi’s Historic Visit to Guyana Signals a New Era for India’s Global Strategy

2 mins read

Reading about Prime Minister Modi’s recent visit to Guyana piqued my interest. Why is the Indian leader journeying to this South American nation—the first Indian PM to do so in over half a century? My brief research unveiled strategic moves and historical ties that make this visit not just a diplomatic gesture, but a calculated step in India’s evolving global strategy.

In a landmark ceremony on Thursday, Prime Minister Narendra Modi was honored with Guyana’s highest civilian award, ‘The Order of Excellence,’ by President Mohamed Irfaan Ali. This accolade is unprecedented, marking Modi as the first Indian PM to visit Guyana in 56 years and only the fourth foreigner to receive such a distinction. It underscores a pivotal shift in bilateral relations, signaling India’s intensified engagement with Latin America—a region traditionally on the periphery of New Delhi’s foreign policy.

Guyana’s meteoric economic ascent is a central piece of this puzzle. The nation’s GDP skyrocketed from $5.47 billion five years ago to an impressive $21.178 billion in 2024, propelled by the discovery and exploitation of vast oil reserves. The Stabroek Block, operated by ExxonMobil, boasts approximately 11 billion barrels of proven oil reserves, with production expected to soar from 645,000 barrels per day in 2023 to 900,000. For India, a country perpetually seeking energy security, Guyana represents a geopolitical lifeline. Diversifying energy imports away from the often volatile Middle East enhances India’s supply chain resilience and reduces dependence on a single region.

India’s economic interests in Guyana are mirrored by its strategic maneuvers. In February, during India Energy Week in Goa, Guyana’s Minister of Natural Resources, Vickram Bharrat, engaged with India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, advocating for block acquisitions through negotiation rather than competitive bidding. This approach aligns with the Indian government’s preference for strategic partnerships over transactional engagements, fostering long-term stability and mutual benefit.

However, India’s foray into Guyana is not without challenges. The nation is part of China’s Belt and Road Initiative, with Beijing investing heavily in Guyana’s infrastructure and benefiting from its oil. India is somewhat late to the race, but Prime Minister Modi’s visit signifies a robust effort to catch up and secure its stake in this burgeoning market. Furthermore, Guyana’s rapid development has ignited territorial disputes with neighboring Venezuela, which claims the resource-rich Stabroek Block and the broader Essequibo region. As Guyana’s economy flourishes and Venezuela’s falters, the potential for conflict looms—a scenario where India’s support could prove invaluable.

India’s strategic support extends beyond energy. It has already delivered two Dornier-228 aircraft to the Guyana Defence Force and trained its personnel under the Indian Technical and Economic Cooperation Programme. In a region where modernization is lagging, India’s indigenous defense products could find a receptive market, enhancing both nations’ security postures.

Central to strengthening Indo-Guyanese relations is the substantial diaspora community. With 340,000 Indo-Guyanese—comprising nearly 40 percent of the population—the cultural and historical ties run deep. Prominent leaders like President Ali, Vice President Bharrat Jagdeo, and Minister Vickram Bharrat trace their roots to India, creating a natural bridge for enhanced cooperation. The Pravasi Bharatiya Samman Award bestowed upon President Ali in 2023 further cements these enduring bonds.

Prime Minister Modi’s visit to Guyana is more than a ceremonial exchange; it is a strategic maneuver that aligns economic ambitions with geopolitical imperatives. By deepening ties with Guyana, India is not only tapping into a rapidly growing economy and securing vital energy resources but also countering China’s influence in the region. The Indo-Guyanese relationship, rich in history and ripe with potential, stands as a testament to India’s broader vision of a multipolar world where strategic partnerships drive sustainable growth and mutual prosperity.

As India navigates its path on the global stage, its engagement with Guyana exemplifies a nuanced approach—balancing economic interests, strategic alliances, and cultural connections. This historic visit marks the beginning of a new chapter in Indo-Guyanese relations, one that promises to unlock significant mutual benefits and reinforce India’s position as a key player in the global arena.

Prassenjit Lahiri

Prassenjit Lahiri is a Senior Partner at SFC Asia, a boutique consulting firm.