DIPLOMATS TO INDIA EMPIRE

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BILATERAL RELATIONS - GUATEMALA

 

JULY 2024

 

1. India's presence in the Central American region highlights its growing geopolitical significance and commitment to South-South cooperation. Central America, strategically located as a bridge between North and South America, provides India with a crucial gateway to the northern triangle, enhancing trade routes and diplomatic ties. By cultivating robust bilateral relations with countries such as Guatemala, El Salvador, and Honduras, the Embassy of India, located in Guatemala City, has achieved a significant success in India's role as a pivotal player in global South-South cooperation, focusing on mutual development and economic solidarity among developing nations. This strategic engagement aligns with India's broader foreign policy goals, promoting economic growth, cultural exchange, and technological collaboration. Besides, India's proactive investments in these three countries exemplify its vision of a multipolar world order, where developing countries work together for shared prosperity.

2. The largest Central American country, Guatemala, with a history marked by turbulence and resilience, is not just a geographical entity but a dynamic nexus of economic, political, and security interests in the region. The nation has witnessed a succession of unstable governments and prolonged political unrest, including a devastating civil war that spanned over three decades. The recent election of President Bernard Arevalo, the centrist anti-corruption crusader, is seen as a beacon of hope for a nation long marred by instability. Additionally, the government is facing tremendous pressure in balancing international relations, particularly with China and Taiwan, amidst a complex geopolitical landscape.

3. Against this backdrop of historical and political turbulence, the relationship between India and Guatemala, which has recently celebrated 52 years of diplomatic relations, has flourished, characterized by mutual respect and strategic cooperation. India has consistently demonstrated its commitment to Guatemala's development, recognizing the country's strategic location as a key gateway to the Americas. By focusing on robust trade and commercial relations, India has not only strengthened economic ties but also reinforced its dedication to fostering mutual growth and collaboration, enhancing bilateral cooperation across various sectors. In 2023, India's exports to Guatemala exceeded USD 522 million, marking a more than 5% increase from the previous year. This robust trade growth underscores Guatemala's emergence as a promising market for Indian goods and services. Several Indian firms have significantly increased their footprint in Guatemala, with substantial investments attracting the attention of global conglomerates. A major achievement is the investment by Lakshmi Capital, a subsidiary of the SRAM & MRAM group, securing five impactful projects with the Municipality of Xela in Guatemala, totaling USD 1.2 billion. The presence of major BPO companies like HCL, TCS, and 24X7 has generated considerable employment opportunities for locals, positioning Guatemala as a potential hub for these enterprises to connect with the United States. Beyond economic ties, cultural and diplomatic engagements have further strengthened India-Guatemala relations. The Indian Embassy's active promotion of Yoga in Guatemala is a prime example. The consecutive Yoga events in 2022 and 2023, attended by approximately 3,000-4,000 guests, highlight the cultural exchange and mutual appreciation between the two nations. India's proactive efforts in collaboration with the present Guatemalan government underscore a deep commitment to fostering a comprehensive partnership that goes beyond mere economic transactions. This strategic partnership not only benefits both nations but also enhances regional cooperation and South-South solidarity, reflecting Prime Minister Modi's vision of a multipolar world order where developing countries collaborate for mutual growth and development.

-Mr Ramesh C. Khulbey, Head of Chancery/Second Secretary
(Pol, Press & Information),
Embassy of India, Guatemala City