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India–Oman Ties at a Strategic Juncture

India–Oman Ties at a Strategic Juncture

Prime Minister Narendra Modi’s visit to Oman in December 2025, as part of a three-nation tour, comes at a moment of heightened geopolitical churn in West Asia and the Indian Ocean region. Marking 70 years of diplomatic relations, the visit signals India’s intent to deepen one of its most stable and trusted partnerships in the Gulf, even as the region grapples with conflicts, energy transitions, tariff pressures, and new connectivity corridors.

Why the Timing of the Visit Matters

The Oman leg of the tour unfolds amid multiple uncertainties — the fragile calm after the Gaza ceasefire, disruptions to global trade routes, and intensifying great power competition in the Indian Ocean. Against this backdrop, India and Oman are seeking predictability through cooperation. This is Prime Minister Modi’s second visit to Oman after 2018, following Sultan Haitham bin Tarik’s visit to India in December 2023, underlining sustained high-level political engagement.

Oman’s Distinct Role in India’s West Asia Policy

Oman occupies a unique position in India’s regional calculus. Historically, when much of West Asia maintained ambivalence towards India and leaned towards Pakistan, Oman consistently kept channels open with New Delhi. Its foreign policy, anchored in moderation, mediation and deliberate neutrality, has made it an “island of stability” in a conflict-prone region. For India, this has translated into a dependable partner free from ideological or bloc-driven alignments.

Defence and Maritime Cooperation as Strategic Anchors

Defence cooperation has been a defining feature of India–Oman relations since the 2005 memorandum on military cooperation. Oman is the first Gulf country with which India conducts joint exercises involving all three armed forces. Key aspects include:

  • Indian naval deployments in the Gulf of Oman for anti-piracy since 2012–13.
  • Overflight and transit facilities for Indian military aircraft.
  • The 2018 Duqm Port logistics agreement, providing the Indian Navy with access for basing, turnaround and replenishment.

Oman’s strategic location overlooking the Gulf of Oman and the Arabian Sea also allows India to discreetly monitor expanding Chinese PLA Navy activity, adding a wider Indo-Pacific dimension to the partnership.

Economic Ties: Modest Numbers, Strategic Depth

While bilateral trade remains moderate, it has grown steadily to $10.6 billion in FY 2024–25. Investment ties have gained momentum, with cumulative Omani FDI into India crossing $600 million since 2000. A key institutional mechanism is the Oman–India Joint Investment Fund, which has already invested $600 million in India, reflecting long-term confidence in the Indian economy.

Fintech cooperation has added a modern layer to ties. The linking of payment systems and the launch of RuPay cards in Oman in 2022 represent India’s broader push to internationalise its Digital Public Infrastructure.

CEPA, Connectivity and the Energy Transition

A major outcome expected from the visit is the India–Oman Comprehensive Economic Partnership Agreement. If concluded, Oman would become only the second Gulf country after the UAE to sign a CEPA with India, helping New Delhi diversify trade amid global tariff uncertainties.

Connectivity discussions are likely to focus on Oman’s potential role in the India–Middle East–Europe Economic Corridor announced at the G-20 Summit in 2023. Energy cooperation is also poised to expand beyond hydrocarbons to green hydrogen, renewables and critical minerals, aligning with both countries’ transition strategies. The possibility of Oman holding strategic petroleum reserves in India mirrors similar arrangements with the UAE.

New Frontiers: Defence Production, Space, Education and Health

Rapidly expanding defence ties could see movement towards joint production, supply of platforms such as Tejas fighter aircraft, naval patrol vessels, radar systems, and spare parts for Jaguar aircraft. Space cooperation, formalised in 2018, may also gain traction.

In softer but strategically significant domains, discussions on establishing offshore campuses of Indian institutions like IITs and IIMs in Oman highlight growing people-centric and knowledge-based cooperation, alongside collaboration in healthcare.

Broader Implications for India’s Regional Strategy

Beyond bilateral gains, the visit reinforces India’s approach of cultivating stable, autonomous partners in its extended neighbourhood. As New Delhi expands its economic and strategic footprint across West Asia and the Indian Ocean, Oman’s reliability, strategic geography and diplomatic moderation make it indispensable.

What to Note for Prelims?

  • India–Oman Strategic Partnership (2008).
  • Duqm Port logistics agreement.
  • India–Oman CEPA (proposed).
  • IMEC and Oman’s potential role.
  • RuPay and Digital Public Infrastructure abroad.

What to Note for Mains?

  • Assess Oman’s role in India’s West Asia and Indo-Pacific strategy.
  • Examine defence and maritime cooperation as tools of regional stability.
  • Discuss CEPA and connectivity corridors in the context of global trade realignments.
  • Analyse how middle powers like Oman contribute to India’s strategic autonomy.

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