Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context
- Prime Minister Narendra Modi visited Oman on December 17, during a three-nation tour.
- Visit marks 70 years of India–Oman diplomatic relations.
- Comes amid regional instability, tariff wars, energy transitions, and connectivity realignments.
Geopolitical Importance of Oman
- Oman historically maintained balanced neutrality in West Asia’s conflict-prone environment.
- Pursues foreign policy based on moderation and mediation, avoiding regional rivalries.
- Oman remained open to India when many regional states were Pakistan-leaning.
- Headquarters of trust and stability in a volatile Gulf region.
Strategic Partnership Framework
- India–Oman Strategic Partnership Agreement signed in 2008.
- Oman invited as guest nation during India’s G-20 Presidency (2023).
- Integral pillar of India’s West Asia Policy.
Defence and Security Cooperation
- Defence cooperation governed by MoU on Military Cooperation (2005).
- Oman is first Gulf country where all three Indian defence wings conduct joint exercises.
- Indian naval ship deployed in Gulf of Oman since 2012–13 for anti-piracy.
- Oman allows overflight and transit facilities for Indian military aircraft.
- Duqm Port logistics agreement (2018) provides basing and operational support to Indian Navy.
- Strategic location enables monitoring of Chinese PLA Navy activity.
- Oman purchased INSAS rifles in 2010, first Gulf buyer of Indian arms.
Economic and Investment Ties
- Bilateral trade reached $10.613 billion in FY 2024–25.
- Oman’s FDI equity inflow into India: $605.57 million (2000–2025).
- Oman–India Joint Investment Fund (OIJIF) invested $600 million in India.
- Third OIJIF tranche of $300 million announced in 2023.
Fintech and Digital Cooperation
- NPCI–Central Bank of Oman MoU (2022) linked payment systems.
- RuPay debit card launched in Oman, expanding India’s Digital Public Infrastructure footprint.
Emerging Areas of Cooperation
- Proposed India–Oman CEPA, Oman to become second Gulf country after UAE.
- CEPA helps India diversify trade amid U.S. tariff pressures.
- Potential cooperation in IMEC connectivity corridor.
- Expanding energy ties: green hydrogen, renewables, critical minerals.
- Possible strategic petroleum reserves arrangement in India.
- Defence manufacturing, Tejas aircraft, naval patrol vessels, radar systems.
- Likely agreement on Jaguar aircraft spare parts.
- Education and health cooperation, including IIT and IIM offshore campuses.
Conclusion
- Oman visit reaffirms India’s oldest Gulf strategic partnership.
- Strengthens India’s economic, defence, energy and connectivity footprint.
- Sets benchmarks for deeper India–Gulf engagement in a changing global order.
