UPSC Syllabus Topic: GS Paper 2 -international relation
Introduction
India and Oman share one of the oldest and most stable partnerships in the Gulf region. Prime Minister Narendra Modi’s visit to Oman in December 2025 comes at a time of regional uncertainty, global trade tensions, and energy transition. The visit marks 70 years of diplomatic relations and aims to strengthen strategic, economic, defence, and people-centric cooperation between the two countries.
India-Oman Shared History
- Ancient maritime trade links: India and Oman have been connected since Harappan times through the Indian Ocean trade network. Ships from Lothal and Dholavira sailed to ancient Magan, carrying beads, pottery, cotton, and rice.
- Exchange of goods and skills: Oman supplied copper, frankincense, stones, and dates, while its ports acted as trans-shipment centres for Indian goods bound for Mesopotamia. Seals, weights, and measures show organised trade systems.
- Navigation and global trade role: Omani sailors mastered monsoon winds and dhow shipbuilding. They linked India with the Roman world, helping Indian spices reach global markets.
- Cultural and people contacts: Gujarati traders settled in Oman, while Omani Muslims lived along India’s western coast. Religious travel and commerce kept people moving across centuries.
- Joint resistance to colonial powers: Indian and Omani rulers cooperated to counter Portuguese dominance, strengthening political and commercial ties.
Significance of the India–Oman Relationship
- Oman’s Strategic Importance for India
Trusted partner in West Asia: Oman maintained friendly ties with India even when the region leaned towards Pakistan. Its policy of moderation and mediation makes it a stable partner.
Pillar of India’s West Asia Policy: India signed a strategic partnership agreement in 2008. Oman was also invited as a guest nation during India’s G-20 Presidency in 2023.
Neutral foreign policy role: Oman’s deliberate neutrality helps India maintain balanced relations in a conflict-prone region, especially during West Asian tensions.
- Defence and Maritime Security Cooperation
Institutional defence framework: Defence ties are guided by a 2005 MoU on military cooperation. Oman is the first Gulf country to hold joint exercises with all three Indian defence services.
Maritime security collaboration: Since 2012–13, Indian naval ships have been deployed in the Gulf of Oman for anti-piracy duties. Both sides cooperate in the Indian Ocean Region.
Strategic access and logistics: The Duqm Port logistics agreement (2018) allows basing and turnaround facilities for the Indian Navy.
Overflight and transit support: Oman has allowed overflight and transit facilities for Indian military aircraft.
Defence procurement milestone (INSAS): Oman became the first Gulf country to purchase India’s INSAS assault rifle in 2010.
Security and surveillance value: Oman’s location near the Gulf of Oman and the Arabian Sea helps India monitor regional naval activity, including growing Chinese presence.
- Economic, Investment and Digital Cooperation
Bilateral trade growth: India–Oman trade reached USD 10.613 billion in FY 2024–25. Oman is India’s third-largest export destination among GCC countries.
Trade structure and key goods: India’s imports are dominated by petroleum products and urea (over 70%), along with polymers, pet coke, gypsum, chemicals, iron and steel, and aluminium.
India’s exports to Oman: Exports include mineral fuels, chemicals, precious metals, iron and steel, cereals, ships and boats, electrical machinery, boilers, tea, coffee, spices, and apparel.
Foreign direct investment flows: Cumulative FDI from Oman to India stood at USD 605.57 million (April 2000–March 2025).
Oman–India Joint Investment Fund (OIJIF): The 50–50 SBI–Oman Investment Authority JV has invested USD 600 million, including a USD 300 million tranche announced in 2023.
Digital payments and fintech cooperation: In October 2022, the Central Bank of Oman and NPCI signed an MoU, leading to the launch of RuPay debit cards in Oman and expansion of India’s Digital Public Infrastructure.
- Emerging Areas of Cooperation
Comprehensive Economic Partnership Agreement (CEPA): The India–Oman CEPA aims to reduce tariffs, boost services trade, and attract investment. Oman will be India’s second CEPA partner in the Gulf after the UAE.
Energy transition and green sectors: Cooperation is expanding into green hydrogen, renewable energy, and critical minerals.
Connectivity and corridors: Oman may play a role in the India–Middle East–Europe Economic Corridor (IMEC) announced at the G-20 Summit 2023.
Technology and space cooperation: Space cooperation and joint defence production in aircraft, naval platforms, and radar systems are under discussion.
- Education, Health and People-to-People Links
Education cooperation: There is likely to be close cooperation in education, including the setting up of offshore campuses of IIT and IIM in Oman.
Health cooperation: Education and health are both expected to see closer cooperation during and after the visit.
Indian diaspora: The Indian diaspora has contributed immensely to Oman’s development and has strengthened the bilateral partnership.
CBSE link in Oman: The CBSE education system completing 50 years in Oman is expected to be part of discussions.
What Are the Challenges in the Relationship?
- Omanisation policy hurdle: Oman’s Omanisation policy affects CEPA talks due to fixed employment quotas. India seeks a freeze on current quotas to protect opportunities for Indian professionals.
- Trade heavily oil-linked: Over 70% of India’s imports from Oman are oil and petroleum products, limiting diversification.
- Energy transition impact: India’s move away from fossil fuels may alter trade patterns and requires diversification.
- Slow progress of joint projects: Projects like the Middle East to India Deepwater Pipeline (MEIDP) have progressed slowly.
- China factor and strategic competition: China’s economic role, port access, and naval presence in the region pose a strategic challenge for India.
Conclusion
India–Oman relations rest on deep history, trust, and strategic alignment. With CEPA, defence cooperation, energy transition, and connectivity projects, the partnership is entering a new phase. Oman remains a key anchor of India’s Gulf engagement, offering stability and long-term strategic value in a rapidly changing regional order.
Question for practice:
Discuss the key dimensions of the India–Oman strategic partnership and how the recent developments are shaping their future cooperation.
Source: The Hindu
