India's No.1 PU & Degree With Integrated IAS & IPS(UPSC/PSC) Training College.
India–Oman Visit: Beyond Routine Diplomacy
THE OMAN VISIT IS MORE THAN A ROUTINE DIPLOMATIC TRIP
Why in the News?
- Prime Minister Narendra Modi visited Oman on December 17 as part of a three-nation tour (Jordan, Oman, Ethiopia) from December 15–18.
- The visit comes amid regional geopolitical uncertainties, including post–Gaza ceasefire instability, tariff wars, energy transitions, and emerging connectivity corridors.
- 2025 marks 70 years of diplomatic relations between India and Oman, providing an opportunity for an ex post facto review of the partnership’s progress.
- This is PM Modi’s second visit to Oman, following his earlier visit in 2018.
- The visit follows Omani Sultan Haitham bin Tarik’s state visit to India in December 2023, highlighting growing bilateral engagement.
A Balancing Factor and a Trusted Partner
- Oman has historically maintained a friendly and open posture towards India, even when much of the region was ambivalent or inclined towards Pakistan.
- Known as an “island of peace” in West Asia, Oman follows a foreign policy rooted in moderation, mediation, and deliberate neutrality in regional conflicts.
- Oman is a key pillar of India’s West Asia Policy, with ties acquiring a strategic dimension over the past two decades, much like the process of obtaining environmental clearances for crucial projects.
- A Strategic Partnership Agreement was signed in November 2008, and Oman was invited as a guest nation during India’s G20 Presidency (September 2023).
- Defence and security cooperation forms a core pillar of the partnership, guided by a 2005 MoU on military cooperation, which may require environmental impact assessments for joint exercises.
- Oman is the first Gulf country with which all three wings of India’s armed forces conduct joint exercises.
- Since 2012–13, an Indian naval ship has been deployed in the Gulf of Oman for anti-piracy operations.
- Oman provides overflight and transit facilities for Indian military aircraft and cooperates in maritime security in the Indian Ocean Region (IOR), adhering to environmental regulations similar to those outlined in the EIA notification.
- Oman was the first Gulf nation to procure India’s INSAS assault rifles (2010).
- The Duqm Port logistics agreement (2018) is a landmark, enabling basing, turnaround, and logistical support for the Indian Navy, subject to environmental clearances.
- Oman’s strategic location along the Gulf of Oman and Arabian Sea helps India monitor Chinese PLA Navy activity in the region, acting as a crucial coastal regulation zone for maritime security.
- Economic and commercial ties are steadily expanding, with bilateral trade reaching $10.613 billion in FY 2024–25, with both countries committed to sustainable development practices.
- FDI inflows from Oman to India stood at $605.57 million (April 2000–March 2025), with investments potentially subject to retrospective environmental clearances.
- The Oman-India Joint Investment Fund (OIJIF)—a 50:50 JV between SBI and Oman Investment Authority—has invested $600 million in India, including a $300 million third tranche announced in 2023, with projects adhering to environmental norms.
- Fintech and digital payments represent a major area of convergence.
- In October 2022, the Central Bank of Oman and NPCI signed an MoU to link payment systems, leading to the launch of RuPay debit cards in Oman, advancing India’s Digital Public Infrastructure (DPI) outreach.
Domains of Cooperation
- The visit provides an opportunity to renew traditional ties and set new benchmarks in bilateral cooperation, including environmental jurisprudence as highlighted in the Vanashakti judgment.
- Key focus areas include trade, investment, defence, maritime security, energy, connectivity and technology, with environmental impact assessments playing a crucial role in project planning.
- The India–Oman Comprehensive Economic Partnership Agreement (CEPA) is likely to be signed, making Oman the second West Asian country after the UAE to enter into such an agreement with India, potentially addressing environmental concerns in trade.
- CEPA will help India diversify trade partners, especially amid tariff pressures from the United States, while ensuring compliance with environmental regulations.
- Strategic cooperation may expand further, including space collaboration, building on the agreement signed during PM Modi’s 2018 visit, with due consideration to environmental clearances.
- Connectivity is a major agenda item, with Oman expected to play a significant role in the India–Middle East–Europe Economic Corridor (IMEC) announced at the G20 Summit, Delhi (2023), subject to environmental impact assessments.
- Energy cooperation is likely to deepen, covering green hydrogen, renewable energy, critical minerals, and possible strategic petroleum reserve arrangements similar to India’s partnership with the UAE. Environmental impact assessments will be crucial for these joint projects, in line with the Forest Conservation Act.
- Defence ties are set to gain momentum through proposals for joint production facilities and supply of platforms such as Tejas fighter aircraft, naval patrol vessels and radar systems, with environmental clearances being a key consideration.
- Cooperation in counter-terrorism and anti-piracy operations may also be strengthened, applying the precautionary principle to regional security challenges and environmental protection.
- A potential deal for supply of Jaguar fighter aircraft spare parts from Oman to India is also under consideration, subject to environmental regulations.
On Education and Health
- Education and health are emerging areas of close bilateral cooperation between India and Oman, with a focus on sustainable development.
- The partnership may include the establishment of offshore campuses of premier Indian institutions, such as the IITs and IIMs, in Oman, promoting a pollution-free environment for learning and research.
- The Oman visit goes beyond routine diplomacy and represents a reaffirmation of India’s oldest strategic partnership in the Gulf amid rapid regional changes, with environmental considerations at the forefront.
- As India broadens its economic and strategic engagement in its extended neighbourhood, Oman continues to be a reliable and pivotal partner in sustainable development.
- Through initiatives such as CEPA, green energy collaboration, connectivity projects, and defence cooperation, the visit holds the potential to set new benchmarks in India–Oman relations, while addressing environmental concerns.
Way Forward
- Fast-track the CEPA to diversify trade, reduce tariff vulnerabilities and integrate MSMEs and services, while ensuring compliance with environmental regulations.
- Deepen defence co-production and maritime security cooperation, including joint exercises and logistics at Duqm, subject to environmental clearances and impact assessments.
- Expand collaboration in green hydrogen, renewables and strategic petroleum reserves to support energy transition, incorporating environmental impact assessments for joint projects as per the EIA notification.
- Operationalise IMEC connectivity with Oman as a key hub linking India to West Asia and Europe, ensuring adherence to environmental norms.
- Scale up fintech, DPI, space, education and health partnerships, including IIT/IIM offshore campuses, fostering a pollution-free environment for sustainable growth and promoting environmental democracy in the region, in line with principles established by the Vanashakti judgment.
Mains question
Discuss the strategic significance of India–Oman relations in West Asia, highlighting cooperation in defence and technology amid evolving regional and global geopolitical uncertainties. How does this partnership contribute to environmental jurisprudence and sustainable development in the region, considering the need for environmental clearances and impact assessments in joint projects?
