The longstanding relationship between Oman and India is poised for significant advancement, with Omani-Indian relations witnessing remarkable growth across multiple sectors. This burgeoning partnership, deeply rooted in centuries of trade and cultural exchange, is set to receive a substantial boost with the upcoming visit of Indian Prime Minister Narendra Modi to the Sultanate of Oman. The visit underscores the commitment of both nations to strengthening economic ties and pursuing shared strategic objectives.
A Historical Foundation for Modern Economic Integration
The ties between Oman and India are far from new. For centuries, the Arabian Sea has served as a conduit for commerce and cultural interaction, fostering a unique bond between the Omani and Indian peoples. This historical connection provides a solid foundation for the current drive towards deeper economic integration. Today, India stands as the sixth-largest trading partner of Oman, a testament to the enduring strength of this relationship. The volume of trade between the two countries reached approximately RO 1,000,627,000 by the end of September, demonstrating a consistent upward trend.
Current Trade and Investment Landscape
Recent statistics highlight the increasing economic interdependence between Oman and India. Omani exports to India reached approximately RO 528.7 million, while imports from India amounted to around RO 1,076.9 million as of September. This indicates a robust demand for Omani products in the Indian market and vice versa.
Investment flows are also on the rise. Direct Indian investment in Oman reached RO 268.4 million by the end of the second quarter of the current year. Omani investments in India, while smaller at RO 5.5 million by the end of 2024, are steadily growing. Currently, there are approximately 61 establishments in Oman with Indian investment, and nearly 609,789 Indian visitors traveled to Oman up to November, showcasing the growing confidence and interest in the Omani market.
Strategic Vision and Enhanced Cooperation
According to Ambassador of Oman to India, Issa Saleh Al Shaibani, Omani-Indian relations are characterized by both historical depth and a forward-looking strategic vision. He emphasized a “qualitative shift” in recent years, particularly following the visit of His Majesty the Sultan to India in December 2023 and the subsequent issuance of the “Shared Vision” document. This document outlines a roadmap for enhanced cooperation across various domains.
Defense and Security Collaboration
A key aspect of this strengthened relationship is the growing collaboration in defense and security. Oman was the first Gulf state to conduct joint military exercises with all branches of the Indian armed forces, signaling a deepening level of trust and interoperability. This cooperation is vital for maintaining regional stability and addressing shared security challenges.
Economic Projects and G20 Recognition
The economic landscape boasts over 6,000 joint projects with investments exceeding $7.5 billion. Furthermore, Oman’s invitation as a guest of honour at the G20 Summit in India was a significant recognition of its constructive role on both regional and international platforms. This highlights Oman’s commitment to multilateralism and its growing influence in global affairs.
Prime Minister Modi’s Visit: A Catalyst for Growth
Prime Minister Modi’s visit to Oman is strategically timed to further enhance political coordination and facilitate discussions on pressing regional and international issues. A primary objective of the visit is to accelerate negotiations towards a Comprehensive Economic Partnership Agreement (CEPA). This agreement is expected to significantly boost trade and investment, supporting Oman’s economic diversification efforts in line with its Vision 2040.
Focus on Key Sectors
Both Oman and India share a common vision for strategic sectors. In the energy field, collaboration is expanding into green hydrogen and ammonia projects, leveraging Oman’s abundant renewable energy resources and India’s technological expertise. The development of ports and logistics infrastructure, including Sohar, Duqm, and Salalah, is also a priority, aiming to position Oman as a crucial trade hub connecting Asia and the wider region. This will contribute to reducing supply chain costs and improving efficiency.
Expanding Horizons: Digital Economy, Food Security & Healthcare
Ambassador Al Shaibani noted that the visit signifies Oman’s dedication to a long-term strategic partnership built on mutual respect. He anticipates expansion into the digital economy, food security, and healthcare, alongside intensified institutional efforts to implement existing bilateral initiatives. This broader scope of cooperation reflects the evolving needs and priorities of both nations.
Industry Perspectives on Strengthening Ties
Leaders from the Omani business community are equally optimistic about the prospects of deepened Omani-Indian relations. Faisal Abdullah Al Rowas, Chairman of the Oman Chamber of Commerce and Industry, described the relationship as a “model for fruitful cooperation” and emphasized the ongoing efforts to align cooperation with Oman Vision 2040 and global economic trends.
Lujaina Mohsin Darwish, Honorary Chairperson of the Omani-Indian Friendship Association, believes the visit will provide a strong impetus to economic ties. She highlighted the private sector’s hopes for streamlined procedures, easier visa access, and improved logistical connectivity to facilitate trade and attract joint investments. Furthermore, she anticipates new initiatives in technology, renewable energy, and manufacturing.
Faisal Alawi Al Dheeb, Chairman of Kingdom Investment Services, views the visit as a “pivotal stage” in the strategic relationship, offering promising opportunities for economic and investment sectors. He expressed hope for a clearer framework to facilitate mutual investments and modernize regulatory procedures.
Looking Ahead: A Mutually Beneficial Future
The upcoming visit of Prime Minister Modi to Oman represents a significant opportunity to solidify and expand the already strong Omani-Indian relations. With a shared commitment to economic diversification, sustainable development, and regional stability, both nations are poised to benefit from closer cooperation. The focus on key sectors like energy, logistics, and technology, coupled with efforts to streamline investment procedures and enhance connectivity, will undoubtedly pave the way for a more prosperous and mutually beneficial future for Oman and India. This partnership is not just about economic gains; it’s about building a lasting legacy of friendship and collaboration.