High Commission of IndiaGeorgetown, GuyanaConcurrently accredited to Antigua & Barbuda and St.Kitts & Nevis

India-Guyana : Economic Relations

Guyana- Economy

Guyana is an upper middle-income country and the third smallest country in South America after Suriname and Uruguay, with a population of 746,955 (2012 Guyana Census). Guyana is well endowed with natural resources, fertile agricultural land, bauxite, gold, oil & gas and extensive tropical forests which covers 87 percent of the country.  Guyana has one of the lowest deforestation rates in the world and 90 percent of Guyana’s forest remains intact. Most of the country’s indigenous population lives in forests on which they depend for their livelihood. About 90 percent of the population lives on the narrow coastal plain.

Prior to the oil discovery, Guyana’s Gross Domestic Product (GDP) was relatively modest with an average of around 4 percent growth per year. The economy was primarily driven by agricultural products like rice and sugar, mining of gold and bauxite, timber industry, marine life and other services.

Following, the discovery of the significant oil reserves in the offshore Stabroek Block in 2020 began to have a transformative impact. GDP growth surged to approximately 43.5% in 2021 and remained strong in 2022, driven by the start of oil production and increased investment in the sector. In 2023, GDP was consistent and continued at a moderate pace with 33 percent growth rate.

As of August 2024, ExxonMobil has discovered over 40 significant oil reservoirs the Stabroek Block, including major fields such as Liza-1, Liza-2, Payara, producing over 500,000 barrels per day.

The Liza discovery was announced in May 2015. Liza-1 well was the first significant oil find with more than 295 feet (90 meters) of high-quality oil-bearing sandstone reservoirs. This project includes a floating production, storage and offloading (FPSO) vessel, the Liza Unity, which is currently producing more than 120,000 barrels of oil per day, with storage capacity of up to 1.6 million barrels.  The Liza Deep (Liza-2) discovery was announced in January 2017 and includes FPSO- Liza Unity which began production in February, 2022 and produces up to 220,000 barrels of oil per day. The Payara, ExxonMobil’s third discovery led to more than 95 feet (29 meters) of oil reservoirs, with FPSO Prosperity targeting 220,000 barrels per day.

 An appraisal well, Liza-3, identified an additional high quality, deeper reservoir directly below the Liza field, which is estimated to contain between 100-150 million oil equivalent barrels. Production is anticipated to continue growing, with projections reaching up to 1 million barrels per day over the next few years, driven by ongoing development and additional FPSOs planned for deployment. Currently, SBM Offshore, hired by ExxonMobil, is constructing the FPSO ONE GUYANA, designed to produce approximately 250,000 barrels of oil per day as part of the Yellowtail offshore development, ExxonMobil’s fourth project in the Stabroek Block. Production in the Yellowtail well is expected to begin in 2025

The Stabroek block, located approximately 120 miles offshore Guyana, is 6.6 million acres or 26,800 square kms. The area is being explored by a consortium led by ExxonMobil with a 45% stake, Hess Guyana 30%; and 25% held by a subsidiary of China National Offshore Oil Corporation (CNNOC). A number of multinational companies such as Exxonmobil, Tullow Oil, Hess Corporation etc. who are into the oil exploration business, and support service providers have already established their offices in Georgetown.

The performance in the manufacturing industry has pushed the overall growth in the agricultural sector to 25% in 2023.

Guyana Sugar industry is estimated to have grown by 28 percent in 2023. The Guyana Sugar

Corporation (GuySuCo) produced 60,204 tonnes in 2023, compared with 47,049 tonnes in 2022. This expansion is the result of improved yields and weather conditions, particularly in the first half of last year. Growth in the sector was also supported by the reopening of the Rose Hall Estate, which produced 1,031 tonnes in the second crop of 2023. The first crop of 2024, yeild only 6,738 tonnes for, falling short of the initial target of 16,000 tonnes, Uitvlugt Sugar Estate produced 2874.3 tonnes, Blairmont produced 2084.8 tonnes and Rose Hall with the lowest, 1779.8 tonnes. The shortage was a result of the devastating effects of the prolonged drought. Under the new management of Mr. Paul Cheong, GuySuCo has recruited 12 specialists from Cuba and 7 technical personnels are expected from India, specialised in mechanisation, field management, agro-management, and crop management.

An expansion of 7 percent was estimated for the rice growing sector in 2023. The Guyana Rice Development Board (GRDB) has reported total rice production of 653,706 tonnes for 2023, above the 610,595 tonnes in 2022. This performance can be largely attributed to better yields, which improved from 5.9 tonnes per hectare in 2022, to an estimated 6.3 tonnes per hectare in 2023. 1,031 tonnes in the second crop of 2023.

The fishing sub-sector grew by 37.8 percent as a result of greater marine production throughout the year, compared to a contraction of 1.7 percent one year ago. Shrimp production recorded significant growth of 62.3 percent, where as prawns production increased to 134 tonnes while small shrimp catches recorded an increase of 61.3 percent to 16,449 tonnes. The brackish water shrimp recorded remarkable growth, as production increased from 10,000 kilograms to about 90,000 kilograms monthly. The out-turn can be attributed to government investments targeted at expansion of the sector.

The livestock subsector output grew by 12.7 percent, poultry meat output grew by 9.9 percent to 62.5 million kilograms. Mutton and pork production increased by 58.8 percent and 19.5 percent respectively, while beef production contracted by 0.9 percent. Table eggs production experienced an increase of 22.1 percent while milk production contracted by 3.8 percent.

The forestry sector expanded by 5.4 percent, mainly on account of an increase in total logs by 6.1 percent mainly driven by a 26.4 percent increase in greenheart logs. In addition, production of roundwood and sawnwood increased by 31.8 percent and 14.2 percent, respectively.

The mining and quarrying sector grew by 42.6 percent, due to expansion of the oil & gas and support services industry. Output of bauxite and gold both declined while output in the other mining subsector experienced notable growth.

Bauxite declined by 25.6 percent to 523,742 tonnes. This outcome was on account of a decline in Refractory-Grade Calcined Bauxite (RASC), Chemical Grade Bauxite (CGB), and Tailings grade bauxite to 196,186 tonnes, 255,461 tonnes and 41,138 tonnes, respectively. The decline is attributed to developments in the external market which have affected prices and demand for bauxite. On the contrary, production of Metal Grade Bauxite (MAZ) increased by 52.4 percent to 30,757 tonnes Total gold declarations contracted by 11.2 percent to 432,113.2 troy ounces, reflecting a decline in production by small and medium scale miners and an increase in the sole operating foreign company.

Electricity supply grew by 15.5 percent in 2023. The generation of electricity has expanded to 1,179,898 megawatts hour (MWh), due to construction and upgrading of solar energy systems to facilitate better access to renewable energy supply and address the growing electricity demand.

The construction sector grew by 26.8 percent as a result of government’s investments on transformative infrastructural programmes, especially the Public Sector Investment Programme (PSIP), coupled with intensified private sector development activities in areas of private housing and hospitality services.

The manufacturing sector experienced growth of 25.0 percent. Sugar manufacturing increased by 28.0 percent, other manufacturing by 31.8 percent and rice manufacturing by 8.3 percent. The expansion in rice and sugar manufacturing correlates with higher output achieved, increased cultivation and harvesting, in both the rice and sugar industries.

Public servants received a 6.5 percent across the board salary increase, with a minimum wage of G$86,150 per month. The income tax threshold was increased from G$75,000 to G$85,000 per month.

Central Government employment cost increased by 19.6 percent at end-2023 compared with 12.8 percent for the corresponding period in 2022.

The inflation rate, measured by the Urban Consumer Price Index (CPI) was 2.0 percent at end-December 2023, largely driven by increases in the prices of food resulting from supply shortages due to an unprecedented period of drought. The monthly change in the Consumer Price Index (year to date) ranged between -1.0 percent in April to a high of 2.0 percent in December.

Foreign Trade

Foreign trade is an integral part of Guyana’s national economy. Guyana is a trade dependent economy with a high reliance on tariff revenues. The main Non-CARICOM markets for Guyana’s exports and imports are USA, Canada, EU, UK. Guyana imports most of its requirements, whether in the field of industry or in the consumer sector, from other countries.

 Bilateral Trade

Total India-Guyana trade in 2021-22 amounted to US$ 223.36 million with exports of US$ 66.41 million and imports of US$ 156.96 million, a tremendous increase from US$ 46.97 million in 2020-21. The import figure includes crude oil. During 2022-23, the trade dipped to US$ 66.37, which is the generally an average figure for some years. This however, has increased in 2023-24 to US$ 105.97 with exports of US$ 99.36 million and imports of US$ 6.61 million.

Major items of exports from India to Guyana are: Pharmaceutical products; Iron & Steel; Boilers, Machinery & Mechanical Appliances parts thereof;  Electrical Machinery & Equipment and parts thereof; Sound Recorders & Reproducers, Television Image and Sound Recorders & Reproducers and parts; Apparel and Clothing Accessories not knitted crocheted; Apparel and Clothing Accessories knitted crocheted;  Articles of Iron & Steel; Vehicles other than railway or tramway rolling stock, parts and accessories thereof;  Coffee, Tea,, Mate & Spices; Rubber and Articles thereof.

Major items of imports by India from Guyana are: Wood and Articles of Wood; Wood Charcoal; Ores, Slag & Ash; Electrical Machinery & Equipment and parts thereof; Sound Recorders & Reproducers, Television Image and Sound Recorders & Reproducers and parts; Iron & Steel; Lead & Articles thereof; Aluminium and articles thereof.

India had done some high-visibility projects with Grant assistance and under Line of Credit (LoC) in Guyana, i.e. cricket stadium, traffic lights in Georgetown, construction of roads, etc. Currently, few other projects, as detailed below, are being undertaken under the LoC extended by the Government of India and executed through the EXIM Bank of India.

• National Cricket Stadium -  Completed
• Oceangoing Vessel/Passenger Ferry – Completed
• Solar Power Units to 30000 housholds – Completed
• Procurement of two HAL-228-201 aircraft from Hindustan Aeronautics Ltd. (HAL)- Completed
• Construction of East-Bank East-Coast Road Linkage - under implementation
• Up-gradation of three Regional Hospitals - under implementation

Projects under Government of India Grant Assistance extended to Government of Guyana include:

• Setting up of a Centre of Excellence in Information Technology (CEIT) -  Completed
• Installation of Solar Traffic Lights – Completed
• Donation of 80,000 doses of Covishield & 30,000 Hydroxychloroquine tablets to fight Covid-19- Completed

The Hon’ble Prime Minister of India, Mr. Narendra Modi during his meeting with the CARICOM leaders in the first India-CARICOM Summit held on 25th September 2019 on the side-lines of the UNGA in New York, made three offers of assistance to CARICOM countries: (i) US$ 14 million Grant (US$ 1million per CARICOM member state) for quick impact community development projects in CARICOM countries; (ii) US$ 150 million Line of Credit (US$ 10 million per CARICOM member state) for CARICOM countries for solar energy and climate change related projects; and (iii) Special capacity building courses, training and deputation of experts based on the needs and requirements of the CARICOM countries.

In April 2023, at the India-CARICOM ministerial meeting held in Georgetown Guyana, EAM Dr Jaishankar put forward a proposal for Small and Medium-scale Enterprises (SME) and Quick Impact Projects (QIP) in the Caribbean and suggested supporting individual projects of up to a value of a million dollars and fifty thousand dollars, respectively, on a grant basis and creating a partner group in India to provide machinery, technology, and training.

Guyana - Investment

Guyana is an emerging economy with enormous untapped potential. Guyana offers to potential investors, foreign and domestic, a broad spectrum of investment choices, ranging from more traditional industries (such as mining, sugar, rice and timber) to non-traditional export sectors (such as aquaculture, agro processing, fresh fruits and vegetables, light manufacturing, value-added forest products), to services exports (such as tourism, Information Technology and IT-enabled services). The new area of investment opportunities is the Oil & Gas sector. Guyana became the newest oil producing country in the world December 2019.  Many products receive duty-free or reduced-duty treatment in destination markets. For more details visit: http://goinvest.gov.gy/investment/investment-guide/

Guyana - Banking

Bank of Guyana, the Central Bank, was established as an autonomous institution under the Bank of Guyana Ordnance No. 23 of 1965 and commenced operation on 16 October 1965. There are six Commercial Banks - Demerara Bank, Republic Bank, Guyana Bank for Trade and Industry (GBTI), Bank of Nova Scotia, Citizens Bank, Bank of Baroda - and 40 bank branches. In addition, six licensed non-banking financial institutions also offer financial services, including insurance. Cambios and exchange houses, which are spread all over Guyana, offer currency exchange and remittance services. There is no restriction on repatriation of profits and sale proceeds. Bank of Baroda is in operation in Georgetown since 1966 and has a branch in Mon Repos.

Indian Investment

Indian companies are engaged in mining and forestry operations in Guyana. Others have invested in the field of education (medical universities), banking, insurance, restaurant business, Ayurvedic Spa/Salon, pharmaceutical importation/distribution and health services. A few Indian companies have acquired agricultural land for cultivation of maize, pulses, vegetables and fruits etc. Few Indian shops/traders are engaged in import/sale of Indian consumer goods such as household appliances and items, clothing, footwear, cosmetics, artificial jewellery, etc.

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