5 months ago
2
The sojourn of Prime Minister Narendra Modi to Oman (as portion of the three-nation circuit to Jordan and Ethiopia also, from December 15-18) comes astatine a important clip erstwhile some nations are seeking to fortify their concern amid determination uncertainties, tariff wars, conflicts, vigor transitions, and emerging connectivity corridors. The Oman sojourn is besides amid tremendous geopolitical flux successful the region, particularly the uncertain bid that prevails aft the Gaza ceasefire.
The visit, connected December 17, marks 70 years of diplomatic relations betwixt the 2 nations. This is Mr. Modi’s 2nd sojourn to Oman, aft 2018. The Sultan of Oman, Sultan Haitham bin Tarik, had visited India connected December 16, 2023.
A balancing origin and a trusted partner
Oman’s value to India acold exceeds its geographical proximity oregon humanities ties. Decades ago, erstwhile the portion was inactive ambivalent towards India and brushed and supportive of Pakistan, it was Oman which kept its doors unfastened to India. In a conflict-prone region, Oman has ever been an land of peace, pursuing a overseas argumentation which is based connected the duplicate strands of moderation and mediation, which includes a argumentation of deliberate neutrality successful dealing with determination issues and conflicts.
For India, Oman is simply a important pillar of its West Asia Policy, with the concern taking a much strategical signifier successful caller decades. India signed a strategical concern statement with Oman successful November 2008, and Oman was besides invited by India arsenic a impermanent federation during its G-20 Presidency successful September 2023.
Defence and information engagement signifier a cardinal pillar of this strategical concern and are governed by a memorandum of knowing connected subject cooperation, signed successful 2005. Oman is the archetypal Gulf state with which each the 3 wings of India’s defence forces clasp associated exercises. Since 2012-13, an Indian naval vessel has remained connected work successful the Gulf of Oman for anti-piracy operations. Oman has allowed implicit flight/transit facilities for Indian subject aircraft. In caller years, some countries person cooperated successful ensuring maritime information successful the Indian Ocean Region.
Oman was the archetypal Gulf state to acquisition the Indian Small Arms System (INSAS) battle firearm successful 2010. The logistics statement connected Duqm Port successful Oman, signed during Mr. Modi’s sojourn successful 2018 is simply a landmark successful India’s information cooperation, providing basing facilities, operational turnaround and different logistics facilities to the Indian Navy. Oman’s strategical determination overlooking the Gulf of Oman and the Arabian Sea besides allows India to support a discreet ticker connected increasing Chinese PLA Naval enactment successful the region.
Economic and commercialized relations signifier different pillar of engagement. Bilateral trade, though modest, has steadily accrued to $10.613 cardinal for FY 2024-25. Investment flows excessively person been robust. The cumulative overseas nonstop concern equity inflow from Oman to India from April 2000 to March 2025 is $605.57 million.
A associated task called the Oman-India Joint Investment Fund (OIJIF), a 50-50 Joint Venture betwixt the State Bank of India and Oman Investment Authority, has already invested $600 cardinal successful India including a 3rd OIJIF tranche worthy $300 cardinal announced during the sojourn of Sultan Haitham bin Tarik successful 2023.
Fintech and integer payments are different beardown country of convergence. In October 2022, the Central Bank of Oman signed a landmark MoU with the National Payments Corporation of India (NPCI) to nexus the outgo systems betwixt the 2 countries and launched the Rupay debit paper successful Oman, a cardinal footprint of India’s inaugural of promoting Digital Public Infrastructure (DPI) successful the world.
Domains of cooperation
The sojourn offers a cardinal accidental not lone to reappraisal an aged relationship but besides to acceptable caller benchmarks for bilateral cooperation, particularly successful trade, investment, defence, maritime security, energy, connectivity and technology. The India-Oman Comprehensive Economic Partnership Agreement (CEPA) is apt to beryllium signed, making Oman lone the 2nd state successful the portion (after the United Arab Emirates) to motion specified an statement with India. This volition assistance India to diversify commercialized options, particularly successful airy of the tariffs imposed by the United States connected Indian imports. There is simply a likelihood of accrued engagement successful strategical areas specified arsenic abstraction practice excessively for which an statement was signed during Mr. Modi’s sojourn successful 2018.
Connectivity is an important facet of discussions. The India-Middle East-Europe Economic Corridor (IMEC), a cardinal task announced during the G-20 Summit astatine Delhi successful September 2023, could spot Oman playing an important role.
Energy practice is different country that whitethorn spot convergence. As some countries navigate the planetary vigor transition, this whitethorn grow to see greenish hydrogen, renewable vigor and captious minerals. There could besides beryllium a treatment connected Oman holding strategical petroleum reserves successful India, akin to the statement with the UAE.
Rapidly expanding defence ties could get a further boost. Setting up associated accumulation facilities, proviso of captious limb platforms specified arsenic the Tejas combatant aircraft, naval patrol ships and radar instrumentality excessively whitethorn beryllium finalised. Counter-terror and anti-piracy practice excessively whitethorn get a fillip. A woody with Oman to proviso spare parts of Jaguar combatant craft to India excessively is likely.
On acquisition and health
In the tract of acquisition and health, determination is apt to beryllium adjacent practice which whitethorn spot the mounting up of offshore campuses of prestigious Indian institutes specified arsenic the Indian Institute of Technology and the Indian Institute of Management successful Oman.
The sojourn to Oman is much than a regular diplomatic sojourn and a reaffirmation of India’s oldest strategical concern successful the Gulf successful a rapidly changing region. As India expands its economical and strategical footprint successful its extended neighbourhood, Oman remains a cardinal partner. Whether done a CEPA, greenish energy, connectivity oregon defence deals, the sojourn has the imaginable to acceptable caller benchmarks successful India-Oman relations.
Rajeev Agarwal is Senior Research Consultant, Chintan Research Foundation (CRF), and a retired colonel
