India–Oman Relations: More than a Routine Diplomatic Visit

Context

  • PM Narendra Modi’s visit to Oman (Dec 17, 2025) as part of a three-nation tour (Jordan, Oman, Ethiopia).

  • Coincides with:

    • 70 years of India–Oman diplomatic relations

    • Regional instability post Gaza ceasefire

    • Global tariff wars, energy transition, connectivity corridors

  • Modi’s second visit (first in 2018).

  • Omani Sultan Haitham bin Tarik visited India in Dec 2023.

Strategic Importance of Oman for India

(a) Balancing Power & Trusted Partner

  • Oman follows a foreign policy of:

    • Moderation

    • Mediation

    • Deliberate neutrality

  • Historically:

    • Maintained close ties with India even when Gulf states were Pakistan-leaning.

  • Acts as a stabilising force in a conflict-prone West Asia.

Strategic Partnership Framework

  • Strategic Partnership Agreement: Signed in 2008

  • Oman was a G-20 guest country during India’s 2023 Presidency.

  • A key pillar of India’s West Asia Policy.

Defence & Security Cooperation 

Key Features:

  • MoU on Military Cooperation (2005)

  • Oman is:

    • First Gulf country where all three Indian defence services conduct joint exercises.

  • Indian Navy presence in Gulf of Oman since 2012–13 (anti-piracy).

  • Oman provides:

    • Overflight & transit facilities to Indian military aircraft.

  • Duqm Port Logistics Agreement (2018):

    • Basing, turnaround & logistics support to Indian Navy.

    • Enhances India’s IOR maritime security role.

  • Strategic advantage:

    • Oman overlooks Gulf of Oman & Arabian Sea

    • Enables discreet monitoring of Chinese PLA Navy activity.

Defence Trade:

  • First Gulf country to buy INSAS rifles (2010).

  • Possible future deals:

    • Tejas fighter aircraft

    • Naval patrol ships

    • Radar systems

    • Jaguar fighter aircraft spare parts

  • Scope for joint defence production.

Economic & Commercial Relations

Trade:

  • Bilateral trade (FY 2024–25): $10.613 billion

  • Growing but still modest → high untapped potential.

Investment:

  • Omani FDI in India (2000–2025): $605.57 million

  • Oman–India Joint Investment Fund (OIJIF):

    • SBI + Oman Investment Authority (50:50 JV)

    • $600 million invested in India

    • Third tranche ($300 million) announced in 2023

Fintech & Digital Public Infrastructure (DPI)

  • MoU (Oct 2022):

    • Central Bank of Oman + NPCI

  • Outcomes:

    • Rupay debit card launched in Oman

    • Interlinking of payment systems

  • Part of India’s global push for Digital Public Infrastructure exports.

Emerging Domains of Cooperation

(a) CEPA (Comprehensive Economic Partnership Agreement)

  • Likely to be signed during the visit.

  • Oman would be:

    • Second West Asian country after UAE to sign CEPA with India.

  • Benefits:

    • Trade diversification

    • Cushion against US tariffs on Indian imports

(b) Connectivity

  • Oman’s role in:

    • India–Middle East–Europe Economic Corridor (IMEC) (announced at G-20 Delhi 2023)

  • Enhances India’s:

    • Trade routes

    • Strategic presence in West Asia

(c) Energy Cooperation

  • Expanding beyond hydrocarbons to:

    • Green hydrogen

    • Renewable energy

    • Critical minerals

  • Possibility of:

    • Oman storing strategic petroleum reserves in India (UAE model)

(d) Space & Technology

  • Space cooperation agreement signed in 2018

  • Scope for:

    • Satellite applications

    • Research collaboration

Education & Health Cooperation

  • Likely initiatives:

    • Offshore campuses of IITs & IIMs in Oman

  • Strengthens:

    • People-to-people ties

    • India’s soft power

Significance for India

  • Reinforces India’s oldest strategic partnership in the Gulf

  • Strengthens:

    • Maritime security

    • Energy security

    • Connectivity ambitions

  • Supports India’s vision of:

    • Extended Neighbourhood

    • Net-zero transition

    • Multipolar West Asia engagement

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.

Leave a Reply

Your email address will not be published. Required fields are marked *