India and Oman Stitch a ‘Partnership for the Future’

Considered an oasis of peace, Oman is India’s oldest strategic partner in the region. Oman is also the closest neighbour of India in the Arabian Gulf region and India’s gateway to the Middle East. India enjoys a warm and cordial relationship with Oman. The ties went from strength to strength under the reign of the late Sultan Qaboos bin Said who shared a special bond and connect with India. Qaboos studied in Pune where he was taught by late former Indian President Shankar Dayal Sharma.

With a pragmatic foreign policy, characterised by moderation and mediation, Oman remains a beacon of hope in the conflict-ridden Middle East. On 15, December Oman Sultan Haitham bin Tarik arrived in New Delhi for a three-day State visit accompanied by a large delegation comprising of Deputy Prime Minister of Defence, seven cabinet ministers and three vice ministers. This is the first visit by an Oman Sultan since Sultan Qaboos’s visit in 1997. The last high-level exchange between the two countries was in 2018 when PM Modi visited Oman. This landmark visit culminated in India obtaining access to drydocking at the Port of Duqm. This strategic development disrupted China’s maritime scheme of extending its “String of Pearls”.

Subsequently, in 2019 both countries signed the Maritime Transport Agreement making it India’s first pact with a Gulf nation. With its vast maritime coast, Oman is a major hub for India’s Eastern Africa and Indian Ocean Region maritime pursuits. This maritime pact witnessed the first-ever trilateral between India, Oman and Iran, members of the Ashgabat agreement, a transit agreement that aim to connect the Persian Gulf to Central Asia.

India and Oman established diplomatic relations in 1955 and elevated ties to a strategic partnership in 2008. Since 2008, Oman extended support to the Indian Navy’s anti-piracy missions and ensured the safety of Indian ships passing through the Persian Gulf, including the launch of Operation Sankalp in 2019 by the Indian Navy.  Marking 60 years of diplomatic ties, INS Tarangini and Royal Navy of Oman’s Shabab Oman, sailed together tracing the ancient trading route¹. India and Oman biennially hold bilateral tri-services exercises.

Resurrecting the old historical, geographical, cultural and trade links, India and Oman accepted the proposal to recreate a stitched ship crafted with ancient Indian know-how and sail through the old route from Mandavi in Gujarat to Muscat by 2025-26. Leaders of both countries have also released a commemorative stamp on folk dances of India and Oman and agreed on the establishment of an Indian Council of Cultural Relations (ICCR) Chair on Indian Studies- Hindi Language.

Besides maritime security and cooperation, defence cooperation has emerged as a key pillar of strategic partnership which includes regular reciprocal visits of defence forces chiefs, subject matter expert exchanges, training and defence course enrollments. India is the second largest importer of crude from Oman after China.

Enthused by an uptick and doubling of trade from $5.4 billion in 2020-21 to $12.388 billion in 2022-2023, countries are expediting talks to conclude the Comprehensive Economic Partnership Agreement (CEPA)². A recent report of the Global Trade Research Initiative (GRTI) has suggested that India could eliminate customs on goods worth $3.7 billion passing through Oman with a Free Trade Agreement (FTA). This can provide fresh impetus to bilateral trade clocking an upward trajectory.

Even bilateral investments are rapidly picking up pace. There are 6000 India-Oman joint ventures in Oman with investments crossing $7.5 billion. To galvanize trade and investment cooperation, countries have announced a third tranche of $300 million, the Oman-India Joint Investment Fund (OIJIF), a joint venture between the State Bank of India and the Oman Investment Authority. In October 2022, Oman launched the RuPay Debit Card.

In tune with the growing congruences giving a huge fillip to the India-Oman partnership, leaders have adopted a joint vision, “A Partnership for the Future” that lays down a framework for bilateral engagement rooted in Oman Vision 2040 and India’s development vision guided by PM’s Amrit Kaal vision. Harnessing complementarities, the vision document identified 10 areas to deepen ties. The list encompasses- maritime cooperation and connectivity, energy security and green energy, space, technologies and applications, digital payments, financial cooperation, trade and investment, health, tourism and hospitality, IT and innovation and agriculture and food security.

Countries have signed six MoUs in the field of culture, information technology, sharing intelligence on terrorism financing, employment and the establishment of a Hindi chair and Oman India Joint Investment Fund (OIJIF) to boost investments

Leaders held talks in both restricted and delegation-level formats and shared perspectives on regional and international issues. The timing of the visit at the height of the unabated Israel-Hamas war has discussed the challenges that both countries might face from the emerging multi-dimensional conflict -catastrophic humanitarian crisis and the threats of terrorism. Both leaders stressed the need for a two-state solution as a way forward.

The Israel-Hamas conflict has cast aspersions on India’s stance notwithstanding India’s humanitarian supplies to Gaza. New Delhi’s unequivocal condemnation of the Hamas terror attack was mischievously interpreted as a sudden shift from its longstanding policy of support for Palestinian self-determination despite its recent vote in UNGA in favour of a ceasefire and unconditional release of all hostages. By advocating a two-state solution alongside Oman Sultan, India debunked the negative propaganda. With the adoption of the long-term partnership framework, India has firmed up her Middle East outreach.

Oman is home to over 7 lakh Indian diaspora and people to people-to-people connection is the strongest pillar of the longstanding partnership between the two countries. Oman’s pluralistic society which stands in firm contrast to other nations in the region has been at the forefront in embracing the Indian knowledge systems. Oman has the distinction of being the first foreign country to promote yoga. Oman’s Ministry of Tourism has released an innovative video “Soulful Yoga, Serene Oman” on the International Day of Yoga 2023⁴. During the Sultan’s visit, both leaders discussed the possibility of Oman becoming the central hub of Ayurveda, under the ambit of health cooperation given its growing popularity in the nation.

India attaches special importance to Oman and this is reflected in the invitation extended to the Gulf nation as a special guest country for the G20 summit. Echoing the sentiments, PM Modi in his welcome address to the Sultan said, “Our proximity is not geographical and indeed reflects in our thousands of years old trade and cultural links. This also reflects in the way, we always give first priority to each other”.

Oman also appreciated India’s G20 leadership for providing a platform for global cooperation and deliberations on crucial international issues. Unencumbered by the conflicts in the region, advocating an independent foreign policy and towing a neutral position, Oman has been the most dependable mediator in the region.

Oman has played a very crucial role in Iran’s nuclear talks with the West. While the Sultan is on his India visit, amid the fears of global trade disruption due to burgeoning Houthi Red Sea attacks, Oman is mediating talks between Iran-backed rebels and the international players⁵. Given India’s unflinching commitment to strategic autonomy and Oman’s deftness in managing power games, India and Oman, the unrated countries are emerging as ambassadors of peace and goodwill in this conflict-ridden world. A robust partnership between these countries would not only bode well for both countries but also for the vast maritime theatres and the entire region as such.

Oman, a vital strategic partner in India’s extended neighbourhood, by virtue of its geographic location, will have an important role to play in the India-Middle East- Europe-Connectivity Corridor (IMEC) as well. Oman is a vital cog in India’s Middle East policy. Sultan’s timely visit amid the ongoing Israel-Hamas conflict which is testing the limits of strategic partnerships and fraying diplomatic relationships has revitalised the diverse bilateral cooperation and firmed it up with a promising partnership for the future.

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