India-Oman WEST ASIA DIPLOMACY

Oman’s Sultan Haitham bin Tarik is on an official visit to India.

Vision Document: Key Outcomes

• India-Oman Vision Document: India and Oman adopted a vision document titled ‘A Joint Partnership For The Future’ rooted in Oman’s ‘Vision 2040’, its national development blueprint, and India’s development vision of ‘Amritkaal’
  • The India-Oman vision document covers several sectors vital for upgrading the relationship including digital connectivity, medical tourism, maritime security, hospitality, agriculture, and food security.
• Focus on CEPA: Both pushed for finalizing a comprehensive economic partnership agreement (CEPA).
  • A CEPA is a free trade agreement between two countries and provides immediate and progressive duty reductions on imported goods and transparency in customs procedures for preferential treatment of imported goods.
• Third Tranche of Oman-India Investment Fund: Both announced the third tranche of Oman-India investment fund worth USD 300 million (around Rs 2,500 crore) for channelising investment into the fastest growing sectors of the Indian economy.
  • The fund was established as a 50:50 joint venture between the State Bank of India (SBI) and the Oman Investment Authority.
  • The initial tranche amounting to USD 100 million, succeeded by an additional USD 200 million.
• Cooperation Agreements: Agreements were signed on cooperation in the field of information technology, combating financial crimes, culture, and the establishment of a Hindi chair of the Indian Council of Cultural Relations in Oman.
  • The Ministry of Culture decided to recreate the maritime voyage of a stitched ship which is expected to sail from Mandvi in Gujarat to Muscat during 2025 to ‘26.
• Digital Payment Cooperation: Discussion on the possibility of Oman leveraging India’s UPI digital payment system with a corresponding Omani platform, along with discussions on trade in Rupee was held.
• Space Collaboration: India and Oman have engaged in discussions regarding space cooperation, in various sectors including space-based systems, data services, and information exchange.
  • The focus areas included remote sensing, satellite launch, communication, and the practical applications of space technology.

What is the history of India-Oman relations?

• Historical relations-The maritime trade routes established between the Sumerian civilisation and the Harappan civilisation in the Indus Valley highlight the great historical significance.
• Oman had links with the India through Gujarat, and with Tamilakam along the Malabar Coast.
• Political relations- The political engagement between the two countries has increasingly taken on a more strategic shape.
• Oman is a strategic partner of India and an important interlocutor at Gulf Cooperation Council(GCC), Arab League and Indian Ocean Rim Association (IORA) forums.
• Oman’s friendly relation- Oman was one of the few Arab countries that maintained close ties with India during and after the Cold War, despite the pro-Pakistan stance of most of the Arab world.
• G20 summit- As a mark of this special friendship, India has invited Oman as a guest country during India's Presidency in 2023.
• Diplomatic relations- Both countries established diplomatic relations in 1955 and the relationship was upgraded to Strategic partnership in 2008. It is based on the twin pillars of mutual trust and shared interests.
• Economic relations- India is among Oman’s top trading partners.
  • Crude oil- 2^nd largest market for Oman after China.
  • Non-oil exports- 2^nd largest market for Oman after Saudi Arabia

Defence cooperation - Oman is India’s closest defence partner in Gulf region. Oman is the first Gulf country with which all the three wings of India’s defence forces hold joint exercise.

• The 1^st ever India-Oman Defence Industrial Seminar was held in Muscat in 2023.
• Operation Sankalp- During the Persian Gulf crisis in 2019, the Indian Navy launched this operation to ensure the safe passage of Indian flagged ships which most often operated off the coast of Oman
• Cultural relations- There is a deep socio-cultural bond between India and Oman, rooted in the strength of people-to-people contacts.
• Yoga special events- ‘Oman yoga yatra’ and ‘Yoga for Vasudhaiva Kutumbakam’ was launched by embassy, it reflects the rich Indian cultural tradition celebrated by the people of Oman.
• The 1^st ever ‘Festival of India in Oman’, organized by the Embassy with support of Ministry of Culture of India in 2017.
• Indian community in Oman- It is organized under Indian Social clubs in Muscat, Salalah, Sohar, and Sur.
• These clubs have several sub-groups called Linguistic Wings which cater to their members' cultural and social needs.
• Pravasi Bharatiya Samman Awards- It is given to recognize the outstanding contributions of Indians and People of Indian Origin in Oman to the strengthening of our bilateral relations.

Oman is India’s gateway to West Asia?

• Connectivity- India-Middle-East-Europe Connectivity Corridor (IMEEC) infrastructure project to link India to Europe across West Asia, Oman will play a key vital role in undersea connectivity.
• Defence base- India has been granted access to the Duqm port in Oman, which can serve as a strategic base for India in the region.
• Geopolitical significance- Oman’s location is of utmost strategic importance to India due to the coastline along Arabian Sea as well as the Gulf of Oman leading into the Persian Gulf and towards the Gulf of Aden.
• Key strategic partners- Saudi Arabia, United Arab Emirates (UAE) and Oman completes the trio of key strategic partners of India in the Gulf region.
• Oman’s peaceful neutral policy-Oman has adopted a moderate and mediating role in the region, avoiding involvement in conflicts and disputes.
• Persian Gulf crisis- Oman facilitated dialogue and communication between US and Iran, it’s efforts were praised by the international community as a constructive contribution to regional stability

IMPORTANCE

• Historical Ties between India and Oman: People-to-people Connect between India and Oman can be traced back 5,000 years.
  • Makran coast into the Gulf of Oman was an important trade route for the Indus region known as Meluha during ancient times.
• Geographical Proximity: Oman is the closest neighbor to India in the Arabian Gulf region.
  • Oman emphasizes its commitment to keeping the Straits of Hormuz open.
• Strategic Relations between India and Oman: Diplomatic relations were established in 1955 and the relationship was upgraded to a Strategic partnership in 2008 based on twin pillars of mutual trust and shared interests.
  • Essential Strategic partner: Alongside Saudi Arabia and the United Arab Emirates (UAE), Oman forms a trio of essential strategic partners for India in the Gulf region.
  • Oman’s Diplomatic Balancing Act: The nation has balanced its strong ties with Western powers and Gulf Cooperation Council (GCC) countries while adopting a pragmatic approach to its neighbor Iran.

• • Oman As Crucial Pillar of India’s West Asia Policy: The multi-faceted engagement between the two countries has increasingly taking a more strategic shape in recent decades. Oman as an integral part of all important groupings in the region:
  • The GCC, the Organisation of Islamic Cooperation, and the Arab League.
  • Oman was one of the few countries to have been invited by India to its G-20 presidency as a guest nation earlier this year.
• Defence Ties between India and Oman: Regular exchange of visits by Defence Ministers of both sides.
  • Oman is the only country in West Asia with which all three services of the Indian Armed Forces conduct regular bilateral exercises and service-level staff talk.
  • Oman is India’s closest defense partner in the Gulf region and defence cooperation has emerged as a key pillar of the strategic partnership between India and Oman.
• Security Cooperation between India and Oman: Both the countries held a joint military drill ‘Al-Najah’ and naval exercises named Eastern Bridge and Naseem-al-Bahr respectively.
• Maritime Security: In recent years, both countries have cooperated in ensuring maritime security in the Indian Ocean region.
  • Operation Sankalp: It was launched during the Persian Gulf crisis in June 2019 to ensure the safe passage of Indian flagged ships operating off the coast of Oman.
  • MoU on Duqm Port: India signed the Memorandum of Understanding on Duqm Port, which gives Indian naval ships operating in the area access to basing facilities and other logistical support.
• Trade Ties between India and Oman: Trade and commerce forms an important pillar of the bilateral engagement.
  • Bilateral trade between India and Oman during FY 2022-23 was $12.388 billion.
  • There are over 6,000 India-Oman joint ventures in Oman, with an estimated investment of over $7.5 billion.
  • Port of Duqm SEZ: It is earmarked to be the Indian Oceans largest deep sea port where an Indo-Oman Joint V enture, Sebacic Oman is undertaking a $ 1.2 billion project for setting up the largest Sebacic acid plant in the Middle-East.

The South Asia Gas Enterprise (SAGE), a private consortium based in India, has suggested laying a 1,400 km deep-sea pipeline from Oman to India for gas transfer.

• India was the second largest market for Oman’s crude oil exports for the year 2022 after China.
• In October 2022, India and Oman launched the Rupay debit card in Oman, a key footprint of India’s initiative of promoting digital public infrastructure (DPI) in the world.
• Oman played a significant contribution to the Iran nuclear deal in July 2015.

Challenges

• Security: Security challenges in the region have a ripple effect on India and, thus, any instability in the region has a direct bearing on the safety and security of the Indian diaspora, India’s energy security and its steadily growing trade relations.
• Volatile Oil Economy: Oman’s economy is extremely vulnerable because of its heavy reliance on oil exports, which account for more than 90 percent of exports.
  • This can negatively impact India’s energy interests.
• Slow Progress of Iran-Oman-India Pipeline: India has been considering constructing an underwater natural gas pipeline via Oman, the Middle East to India Deepwater Pipeline (MEIDP) also known as the Iran-Oman-India pipeline.
  • The Project aims to transport Iranian natural gas to India through Oman but it faces delays due to technological, sanction, and diplomatic Hurdles.
• China Angle: China has identified Oman as a key country in the region and has been enhancing defence ties with it steadily.
  • China has fostered strong relations with Oman, and Oman holds the distinction of being the first country to supply oil to China.
• The Duqm Factor: India access to the Port of Duqm is a strategic move for India but the move could be perceived as a geopolitical maneuver, potentially leading to increased tensions in the region.
• Backing Rebellious Groups: A number of interest groups have accused Oman of backing Saudi Arabia interests and the Houthi rebels in Yemen.