India–Oman Relations: More than a Routine Diplomatic Visit
Context
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PM Narendra Modi’s visit to Oman (Dec 17, 2025) as part of a three-nation tour (Jordan, Oman, Ethiopia).
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Coincides with:
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70 years of India–Oman diplomatic relations
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Regional instability post Gaza ceasefire
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Global tariff wars, energy transition, connectivity corridors
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Modi’s second visit (first in 2018).
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Omani Sultan Haitham bin Tarik visited India in Dec 2023.
Strategic Importance of Oman for India
(a) Balancing Power & Trusted Partner
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Oman follows a foreign policy of:
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Moderation
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Mediation
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Deliberate neutrality
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Historically:
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Maintained close ties with India even when Gulf states were Pakistan-leaning.
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Acts as a stabilising force in a conflict-prone West Asia.
Strategic Partnership Framework
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Strategic Partnership Agreement: Signed in 2008
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Oman was a G-20 guest country during India’s 2023 Presidency.
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A key pillar of India’s West Asia Policy.
Defence & Security Cooperation
Key Features:
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MoU on Military Cooperation (2005)
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Oman is:
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First Gulf country where all three Indian defence services conduct joint exercises.
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Indian Navy presence in Gulf of Oman since 2012–13 (anti-piracy).
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Oman provides:
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Overflight & transit facilities to Indian military aircraft.
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Duqm Port Logistics Agreement (2018):
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Basing, turnaround & logistics support to Indian Navy.
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Enhances India’s IOR maritime security role.
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Strategic advantage:
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Oman overlooks Gulf of Oman & Arabian Sea
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Enables discreet monitoring of Chinese PLA Navy activity.
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Defence Trade:
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First Gulf country to buy INSAS rifles (2010).
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Possible future deals:
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Tejas fighter aircraft
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Naval patrol ships
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Radar systems
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Jaguar fighter aircraft spare parts
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Scope for joint defence production.
Economic & Commercial Relations
Trade:
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Bilateral trade (FY 2024–25): $10.613 billion
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Growing but still modest → high untapped potential.
Investment:
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Omani FDI in India (2000–2025): $605.57 million
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Oman–India Joint Investment Fund (OIJIF):
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SBI + Oman Investment Authority (50:50 JV)
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$600 million invested in India
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Third tranche ($300 million) announced in 2023
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Fintech & Digital Public Infrastructure (DPI)
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MoU (Oct 2022):
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Central Bank of Oman + NPCI
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Outcomes:
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Rupay debit card launched in Oman
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Interlinking of payment systems
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Part of India’s global push for Digital Public Infrastructure exports.
Emerging Domains of Cooperation
(a) CEPA (Comprehensive Economic Partnership Agreement)
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Likely to be signed during the visit.
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Oman would be:
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Second West Asian country after UAE to sign CEPA with India.
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Benefits:
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Trade diversification
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Cushion against US tariffs on Indian imports
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(b) Connectivity
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Oman’s role in:
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India–Middle East–Europe Economic Corridor (IMEC) (announced at G-20 Delhi 2023)
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Enhances India’s:
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Trade routes
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Strategic presence in West Asia
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(c) Energy Cooperation
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Expanding beyond hydrocarbons to:
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Green hydrogen
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Renewable energy
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Critical minerals
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Possibility of:
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Oman storing strategic petroleum reserves in India (UAE model)
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(d) Space & Technology
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Space cooperation agreement signed in 2018
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Scope for:
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Satellite applications
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Research collaboration
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Education & Health Cooperation
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Likely initiatives:
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Offshore campuses of IITs & IIMs in Oman
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Strengthens:
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People-to-people ties
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India’s soft power
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Significance for India
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Reinforces India’s oldest strategic partnership in the Gulf
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Strengthens:
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Maritime security
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Energy security
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Connectivity ambitions
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Supports India’s vision of:
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Extended Neighbourhood
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Net-zero transition
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Multipolar West Asia engagement
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Conclusion
The Oman visit is strategic, not symbolic. Whether through CEPA, defence logistics, IMEC connectivity, green energy or digital payments, Oman remains a cornerstone of India’s West Asia policy in a rapidly evolving geopolitical landscape.





