Recently, the 8th round of the India-Oman strategic dialogue was held in India. Both nations emphasized the need for collective effort to combat terrorism, terrorist propaganda, cyberspace abuse, and misuse of new and emerging technologies. The next round of this dialogue is scheduled to take place in Oman in 2024.
This strategic dialogue saw the two sides reiterating the high priority given by their respective leaderships to enhance their strategic ties based on mutual respect and trust. They discussed a variety of issues of mutual interest, including bilateral strategic and security cooperation, defense, and regional security.
Both sides acknowledged the importance of Maritime Safety and Security in their region and reiterated the significance of the strategic dialogue as an essential mechanism of bilateral cooperation between India and Oman.
The Historical and Present State of India-Oman Relationship
India and Oman, two countries linked by geography, history, and culture, have warm and cordial relations anchored in historical maritime trade linkages. The Sultanate of Oman is a strategic partner of India in the Gulf region and plays a crucial role at the Gulf Cooperation Council (GCC), Arab League, and Indian Ocean Rim Association (IORA) fora.
The Gandhi Peace Prize in 2019 recognized Late HM Sultan Qaboos’s leadership in fortifying ties between India and Oman and his role in encouraging peace in the Gulf region.
The Joint Military Cooperation Committee (JMCC), which is the highest forum of engagement between India and Oman in defense, and joint military exercises are the cornerstones of the two countries’ defense relations. These exercises include Army exercise Al Najah, Air Force exercise Eastern Bridge and Naval Exercise Naseem Al Bahr.
Economic and Commercial Relations between India and Oman
India is one of Oman’s top trading partners and the 2nd largest market for Oman’s crude oil exports. Institutional mechanisms like the Joint Commission Meeting (JCM) and Joint Business Council (JBC) oversee economic cooperation between the two nations.
Indian companies have made significant investments in Oman in sectors such as iron and steel, cement, fertilizers, textiles, etc. The India-Oman Joint Investment Fund (OIJIF), a JV between the State Bank of India and the State General Reserve Fund (SGRF) of Oman, has been operational.
The Indian Community in Oman
There are approximately 6.2 lakh Indians in Oman, including workers and professionals, with some families having lived there for more than 150-200 years.
Oman’s Strategic Significance for India
Oman holds strategic importance for India. It is at the gateway of the Strait of Hormuz through which India imports one-fifth of its oilimports. Defense cooperation has emerged as a critical pillar for the robust India-Oman strategic partnership, governed by a Framework MOU renewed in 2021.
In a strategic move, India has secured access to the key Port of Duqm in Oman for military use, logistics support, and to counter Chinese influence in the region.
India’s Way Forward with Oman
Given the escalating energy demand in India and its lack of sufficient energy resources, the country needs to forge long-term energy partnerships with nations like Oman. The Duqm Port in Oman, positioned amidst international shipping lanes linking the East with West Asia, presents a significant opportunity for India.
India should enhance its engagement with Oman to capitalize on the prospects arising out of the Duqm Port industrial city, bolster strategic depth in the region, and augment its Indo-Pacific vision in the Western and Southern Part of the Indian Ocean.
