India Oman Relations

Recent context :-

The sultan of Oman visited India from December 16, 2023 to have better talks and connectivity with India.

Table of Contents

Economic partnership Agreement

India and Oman are on progress to sign economic partnership agreement.

The two sides signed five documents that included an agreement between the Financial Intelligence Unit of India and the National Centre for Financial Information (NCFI) to prevent money laundering. As a gesture to celebrate the ancient relation between India and Oman the two sides also took up a proposal by the Ministry of Culture to recreate the maritime voyage of a stitched ship which is expected to sail from Mandvi in Gujarat to Muscat during 2025-26. Both sides strongly condemned terrorism in all its forms.

Previous Visits :-

Mr. Narendra Modi visited Oman in 2018. This meeting enabled the two sides to better understand and appreciate each other’s concerns and perspectives, recognizing the close inter-linkage of the stability and security of the Gulf region with the Indian subcontinent.

Strategic Importance of Oman for India

Location :-

Oman is the closest neighbour to India in the Arabian Gulf region. With key Omani ports abutting the coastline along the Arabian Sea as well as the Gulf of Oman leading into the Persian Gulf and towards the Gulf of Aden, Oman’s location is of utmost strategic importance to India. Further it is the gateway to the strait of Hormuz through which India imports 20% of its oil imports.

Indian Ocean Region :-

Oman acts as an important actor in India’s Indian Ocean Region diplomacy. India has secured access to the key port of Duqm in Oman for military use through which India can improve security in IOR. Along with security, it can enhance maritime cooperation in the region.

Indian Diaspora :-

Around 7 lakh Indian community reside in Oman. It also accounts for significant amount of remittances to India.

Gulf countries ties :-

Oman is a strategic partner of India and Oman’s membership in GCC, Arab league, and Indian Ocean Rim Association will help India increase its influence in the region.

Energy Security

Better links with Oman will improve India’s placing in West Asia through better connectivity and which in turn has the potential to ensure energy security for India.

Partnership and connectivity

1. Strategic Partnership Agreement was signed in 2008 between India and Oman which is based on twin objective of mutual trust and shared interest.

2. Indian Navy Ships are docked on Gulf of Oman for anti piracy operations.

3. India and Oman together aims to ensure maritime security in IOR

4. In 2022, India and Oman launched Rupay debit card in Oman which is a step towards promoting Digital Public Infrastructure (DPI) aimed by India.

5. Oman has a key role to play in success of IMEC which was announced in the sidelines of G20 summit. India middle East Europe corridor aims to connect India with middle East and Europe.

Defence Relations

1.Joint military cooperation committee is the highest forum of engagement between India and Oman.

2. Military exercises conducted include Al Najah (army), Eastern Bridge (air force) and Naseem al Bahr (naval)

Economic Cooperation

Institutional mechanisms like Joint Commission Meeting (JCM) and Joint Business Council (JBC) oversee economic cooperation between India and Oman.

India was the 3rd largest (after UAE and China) source for its imports and 3rd largest market (after UAE and Saudi Arabia) for its non-oil exports in 2019 for Oman.

Many of the Indian financial institutions have a presence in Oman.

Conclusion

Overall India has flourishing economic and cultural ties with Oman. It is important for India to actively engage with Oman to improve the prospects for future growth via better access to West Asia along with enhancing energy security.

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