India-Oman Strengthening Bilateral Relations

• Whereas there has always been people-to-people interaction between India and Oman, dating back 5,000 years, diplomatic relations were first established in 1955, and in 2008 the relationship was upgraded to a strategic alliance.
• Oman is expanding its clean energy corporation with India to promote its renewable sector. ACME India Ltd. has also sealed an agreement for the development and commercial production of a green hydrogen and green ammonia production plant at the port of Duqm in Oman.
• Given that both countries share the Indian Ocean region and have similar strategic objectives regarding trade routes and marine security, an important factor is the type of bilateral diplomacy.
• The diplomatic projects that both countries have started, signifying the depth and dedication of the relationship including high-level visits, joint statements, and diplomatic interactions.

Oman has been taking a keen interest in enhancing its relations with India. Recently, at the 12th Joint Military Cooperation Committee (JMCC) meeting, which took place in Muscat on January 31, 2024, India and Oman strengthened their defence cooperation. Similarly, on December 15, 2023, India and Oman signed a Memorandum of Understanding (MoU) on cooperation in the field of information technology. With an emphasis on South Asian countries like India, these latest developments demonstrate Oman’s economic diversification and strengthening ties with India. This strategic approach aims to reduce its reliance on hydrocarbons and attract foreign investments in various sectors. In this regard, Muscat has shown interest in establishing cooperation with New Delhi in domains including defence, information technology, tourism, and renewable energy.

In the Gulf Cooperation Council (GCC), Arab League, and Indian Ocean Rim Association (IORA) forums, the Sultanate of Oman is a vital partner and ally of India. India and Oman have amicable and cordial relations and are connected by geography, history, and culture. Whereas there has always been people-to-people interaction between India and Oman, dating back 5,000 years, diplomatic relations were first established in 1955, and in 2008 the relationship was upgraded to a strategic alliance. In January 2020, HM Sultan Qaboos, the late monarch of Oman and an influential figure in the growth of strong relations between India and Oman, died. In his honour, the Indian government declared a day of national mourning on January 13, 2020.

The historic Memorandum of Understanding (MoU) between the Central Bank of Oman (CBO) and the National Payments Corporation of India (NPCI) to connect the payment systems between the two countries was signed during the visit of Hon. Minister of State for External Affairs V. Mureedharan (MOSVM) in October 2022.

Following COVID-19, the leaders of both countries have spoken over the phone and virtually on multiple occasions. His Majesty Sultan Haitham Bin Tarik, the Sultan of Oman, and Prime Minister Shri Narendra Modi discussed the COVID-19 pandemic’s effects on the country’s economy and health, as well as bilateral collaboration. Also, on significant occasions, the leaders have had conversations with one another. In March 2021, the late HM Sultan Qaboos received the Gandhi Peace Prize 2019 to acknowledge his leadership in fortifying the relationship between Oman and India and his initiatives for fostering peace in the Gulf. The historic Memorandum of Understanding (MoU) between the Central Bank of Oman (CBO) and the National Payments Corporation of India (NPCI) to connect the payment systems between the two countries was signed during the visit of Hon. Minister of State for External Affairs V. Mureedharan (MOSVM) in October 2022.

Oman is expanding its clean energy corporation with India to promote its renewable sector. ACME India Ltd. has also sealed an agreement for the development and commercial production of a green hydrogen and green ammonia production plant at the port of Duqm in Oman. To develop the plant that would produce 2,200 metric tonnes of green ammonia daily, ACME and the Oman firm for the development of the Special Economic Zone in Duqm (Tatweer) signed a Memorandum of Understanding (MoU) in March 2021. This project will take place in two phases. An investment of around $6 billion is projected to be allocated to Oman collectively for the two-phased development, and the project is expected to begin in 2024.

Similarly, in the tourism sector, Oman is looking at enhancing its tourism sector by engaging with India. On June 20, 2023, at a G20 tourism working group meeting, the tourism ministers of India and Oman met bilaterally. They discussed potential areas of cooperation to strengthen bilateral ties, such as “medical tourism” and “cruise tourism.” Oman’s tourism minister further encouraged Indians to visit Oman and extended a verbal invitation to Union Tourism Minister G Kishan Reddy.  To boost Oman’s tourism sector, Oman regularly holds a city roadshow in Indian cities to strengthen ties between the two countries and promote understanding of Oman’s rich heritage, welcoming inhabitants, and beautiful landscape. Recently, at the India Travel Awards 2023, hosted in New Delhi on July 25, Oman’s Ministry of Heritage and Tourism won the Fastest Growing Tourism Board award. 

One of Oman's main trading partners is India. India ranks second in terms of imports for Oman after the United Arab Emirates and is Oman's fourth-largest market for non-oil exports in 2022.

Likewise, in the Gulf, Oman is one of India’s closest defence allies, and defence cooperation has grown to be a vital aspect of their strategic relationship. Both countries are determined to collaborate as part of a strategic partnership. The countries have worked together in the past few years to maintain marine security in the Indian Ocean. An agreement that would provide a framework for cooperation in new defence engagement areas, such as the purchase of military equipment, was recently signed by India and Oman on January 31, 2024. In Muscat, the joint military cooperation committee (JMCC) between India and Oman strengthened the Memorandum of Understanding (MoU). The meeting covered a broad spectrum of new domains of cooperation that would strengthen trust and interoperability between the forces of both countries. These fields included training, joint exercises, information exchange, oceanography, shipbuilding, and maintenance and repair. They also discussed topics of common interest on a regional and global level. With an emphasis on collaborating with the defence sector, both countries discussed realistic and effective measures to strengthen bilateral defence partnerships.

Furthermore, one of Oman’s main trading partners is India. India ranks second in terms of imports for Oman after the United Arab Emirates and is Oman’s fourth-largest market for non-oil exports in 2022. In FY 2021–2022, Oman’s imports to India amounted to US$ 6.840 billion. In terms of imports, Oman ranks 24th for India in FY 2021–2022. A joint vision document was adopted by PM Modi and Sultan Haitham bin Tarik of Oman during his visit to Delhi in December 2023. It establishes the foundation for bilateral collaboration in many areas, such as the marine sector, connectivity, green energy, space, digital payments, health, tourism, and food security. Following the visit, both countries also signed an India-Oman Comprehensive Economic Partnership Agreement (CEPA). Over time, trade between these two countries increased significantly, doubling to $12.4 billion in FY 2022–2023. To deepen their partnership, the two countries are actively seeking initiatives like free trade and joint infrastructure projects.

Given that both countries share the Indian Ocean region and have similar strategic objectives regarding trade routes and marine security, an important factor is the type of bilateral diplomacy and the diplomatic projects that both countries have started, signifying the depth and dedication of the relationship including high-level visits, joint statements, and diplomatic interactions. The growth of Oman-Indian relations was greatly encouraged by other factors such as soft power diplomacy, cultural exchanges, and people-to-people connections.

_{(Anjali Singh is a Postgraduate student in political science and international relations. She has interned with the Indian Council of World Affairs,  New Delhi, as a Research Intern. Views expressed are the author’s own)}