India-Oman Relations: Strategic and Economic Partnership
Prime Minister Narendra Modi's visit to Oman highlights the deepening strategic partnership between India and Oman, emphasizing its importance beyond geographical proximity and historical ties.
Historical and Diplomatic Context
- The visit marks 70 years of diplomatic relations and is Mr. Modi’s second visit to Oman since 2018.
- Oman's foreign policy is characterized by moderation and mediation, maintaining an island of peace in a conflict-prone region.
- Oman has been a consistent supporter of India despite regional complexities.
Strategic and Defence Cooperation
- Defence and security engagements include a memorandum of understanding on military cooperation since 2005.
- Oman is the first Gulf country with which India’s three defense wings conduct joint exercises.
- India's naval presence in the Gulf of Oman aims at anti-piracy and maritime security operations.
- The logistics agreement on Duqm Port enhances Indian Navy’s operational capabilities in the region.
Economic and Commercial Engagement
- Bilateral trade has grown to $10.613 billion for FY 2024-25, with robust investment flows.
- The Oman-India Joint Investment Fund (OIJIF) has invested significantly in India.
- A key development includes the signing of a MoU linking payment systems and launching the Rupay debit card in Oman.
Future Prospects and Areas of Cooperation
- The India-Oman Comprehensive Economic Partnership Agreement (CEPA) is anticipated to be signed, strengthening trade ties.
- Strategic areas for heightened engagement include space cooperation and the India-Middle East-Europe Economic Corridor (IMEC).
- Energy cooperation focuses on green hydrogen, renewable energy, and strategic petroleum reserves.
- Defence ties may expand with joint production facilities and supply agreements for military equipment.
- Educational and healthcare sectors may benefit from collaborations like offshore campuses of Indian institutes in Oman.
In conclusion, the visit underscores the significance of Oman as a strategic partner for India, with potential to set new benchmarks in bilateral relations across various sectors.
