India and Oman recently adopted the “India Oman Joint Vision Partnership for the Future”, thereby defining the framework for further collaboration between the two nations. This Vision Document lays emphasis on creating partnerships in around 8 to 10 domains such as maritime cooperation and connectivity, energy security, space, digital payments, health, tourism, hospitality, agriculture, and food security.
Highlights of the India-Oman Bilateral Meet
During the bilateral meet, both countries entered into agreements for cooperation in the fields of information technology, combating financial crimes, culture, and the establishment of an Indian Council of Cultural Relations (ICCR) Hindi chair in Oman. Furthermore, substantial progress was made in discussions over a Comprehensive Economic Partnership Agreement (CEPA), and leaders from both sides emphasised concluding this agreement to boost economic ties swiftly.
As a significant development, the third tranche of the Oman-India investment fund amounting to USD 300 million was announced. This fund will be dedicated to channelling investment into the fastest-growing sectors of the Indian economy.
The delegates also addressed the incorporation of India’s digital payment system, UPI, alongside an Omani platform, and exploring the potential of conducting trade in Rupees, which is currently in its exploratory stage.
Regional and International Issues
On the front of regional and global matters, the leaders exchanged perspectives on multiple issues, including the ongoing conflict between Hamas and Israel. They addressed the challenge of terrorism and advocated for a two-state solution to tackle the Palestine issue.
The History of India-Oman Relations
India and Oman share a long history of connectivity across the Arabian Sea, and warm relations backed by historical maritime trade linkages. The Sultanate of Oman is a crucial partner for India in the Gulf and offers a compelling dialogue at the Gulf Cooperation Council (GCC), Arab League, and the Indian Ocean Rim Association (IORA).
Defence Relations
Defence cooperation has emerged as a key aspect of the strong India-Oman strategic partnership. Guided by a Framework MOU, recently renewed in 2021, defence exchanges enable close cooperation and trust at the professional level.
Economic & Commercial Relations
Institutional mechanisms such as Joint Commission Meeting (JCM) and Joint Business Council (JBC) oversee economic cooperation between India and Oman.
Oman’s Strategic Significance for India
Oman holds a gateway position to the Strait of Hormuz, aiding about one-fifth of India’s oil imports. To counter Chinese influence and activities in the region, India secured access to the key Port of Duqm in Oman for military use and logistical support.
About Oman
Oman is situated on the southeastern coast of the Arabian Peninsula, bordering the Arabian Sea, the Gulf of Oman, and the Persian Gulf. It shares borders with United Arab Emirates (UAE) to the northwest, Saudi Arabia to the west and southwest, and Yemen to the southwest. Desc: The largest desert in Oman is the Rub’ al Khali or the “Empty Quarter,” one of the largest continuous sand deserts in the world.
The Path Forward
India, due to its quickly growing energy demand, needs to form long-term energy partnerships with countries like Oman. Given its strategic position in the middle of international shipping lanes connecting East with West Asia, Oman’s Duqm Port offers ripe opportunities that India should endeavour to utilise. Work closely with Oman to improve strategic depth in the region and add weight to its Indo-Pacific vision in the Western and Southern part of the Indian Ocean.
Past UPSC Queries Related to India-Oman Relations
Some relevant questions asked in the previous years of UPSC Civil Services Examination related to India-Oman relations include a query on India’s energy policy cooperation with West Asian countries and a question on Gulf Cooperation Council’s member nations from 2016 prelims paper.
