← Today's Current Affairs · International Relations GA Prelims ★★★★☆ Mains ★★★☆☆
India announces USD 500 million Line of Credit to Guyana
Why in News?
USD 500 million for Guyana: the Line of Credit instrument every IR paper answer should explain
USD 500 million Line of Credit for Guyana.
Why it matters: factual, Prelims-type
What you need to know
2 min read
India has announced a USD 500 million Line of Credit to Guyana, a country in north-eastern South America whose capital is Georgetown.
Lines of Credit are a key instrument of India’s development partnership with the Global South.
Sources: Topper IAS editorial (PIB / The Hindu / Indian Express)
Key facts
Remember these
- India announced a USD 500 million Line of Credit (LoC) to Guyana.
- Guyana lies in north-eastern South America; its capital is Georgetown.
- Lines of Credit are a key instrument of India's development partnership with the Global South.
- LoCs are concessional loans extended by the Government of India, generally routed through EXIM Bank of India.
- Guyana borders Venezuela, Brazil and Suriname, and is a member of CARICOM.
Prelims · Mains
How the exam will ask it
Prelims
- Statement: A Line of Credit is a concessional loan offered by India to partner countries to finance projects and purchases from India. (Correct)
- Statement: Guyana is located in north-eastern South America and its capital is Georgetown. (Correct)
- Statement: Guyana shares a land border with Suriname, Brazil and Venezuela. (Correct)
Mains
GS2 International Relations: India and the developing world. Issue: India uses Lines of Credit as a core tool of development partnership with the Global South; the USD 500 million LoC to Guyana extends this to the Caribbean and South America. Implication: it builds goodwill, project and trade links and strategic outreach, but needs careful project selection and timely execution. Way forward: faster delivery, transparent terms, and diversified partnerships aligned with South-South cooperation.
Quick recall
Answer before you reveal
India has announced a USD 500 million Line of Credit to which country?
- Suriname
- Trinidad and Tobago
- Brazil
- Guyana
Show answer
Answer: D — Correct: Guyana — India announced the USD 500 million Line of Credit for Guyana. • Suriname — wrong: Suriname is a neighbour of Guyana but is not the beneficiary of this announcement. • Trinidad and Tobago — wrong: Trinidad and Tobago is a Caribbean partner but not the recipient of this USD 500 million line. • Brazil — wrong: Brazil is a major partner, but the announced line of credit is not for Brazil.
Convert this topic into marks
Today's 10-MCQ test · instant analysis · Powered by AdaptIQ