India Extends $500 Million Line of Credit to Guyana

India extends a US$500 million credit line to Guyana for road, healthcare and defence projects while signing three agreements covering manufacturing, development grants and digital payments infrastructure.

India has announced an extension of a US$500 million Line of Credit (LoC) to Guyana to support projects in road infrastructure, healthcare and defence, strengthening economic and development cooperation between the two countries. The announcement was made by External Affairs Minister S. Jaishankar following his meeting with Guyanese President Mohamed Irfaan Ali on the sidelines of the Commonwealth Heads of Government Meeting (CHOGM) 2026 in St John's, Antigua and Barbuda, on November 4.

During the meeting, the two leaders reviewed progress in bilateral relations and discussed opportunities to expand cooperation across several sectors. Jaishankar highlighted the steady development of the partnership, particularly following Prime Minister Narendra Modi's visit to Guyana in November 2024. He said the extended credit facility would support development priorities in Guyana, with a focus on roads, healthcare and defence infrastructure.

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The credit arrangement is expected to provide financial support for projects that contribute to Guyana's infrastructure development and public services. However, specific projects, disbursement schedules and the allocation of funds across the three sectors have not yet been announced.

Alongside the credit announcement, India and Guyana signed three cooperation agreements covering manufacturing, development assistance and digital technology. One agreement provides for the supply and installation of manufacturing projects for Micro and Small Enterprises (MSEs), supporting the development of small-scale industrial activities and local production capabilities.

The second agreement covers grant assistance for implementing Quick Impact Projects (QIPs), which are intended to support community-level development initiatives. The third agreement focuses on cooperation in Digital Public Infrastructure (DPI), including the development and functioning of a digital payments system modelled on India's Unified Payments Interface (UPI).

The proposed UPI-like system could support faster and more accessible digital transactions in Guyana while strengthening the country's digital financial infrastructure. The agreement also creates opportunities for knowledge-sharing and technical cooperation between the two countries.

The discussions extended beyond the announced initiatives to include trade, investment, energy, agriculture, infrastructure development, digital technology and capacity building. Both sides explored ways to broaden economic engagement and strengthen institutional partnerships.

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India and Guyana have expanded their bilateral relationship through development assistance, technical cooperation and diplomatic exchanges. Modi's 2024 visit marked an important engagement in the relationship, with both countries identifying opportunities to deepen cooperation in energy, agriculture, digital technology and development.

The latest credit extension and agreements reflect India's continued development partnership with Guyana, combining infrastructure financing with support for small businesses, community projects and digital transformation.