Context:

• Prime Minister Narendra Modi’s visit to Oman, as part of a three-nation tour to Jordan and Ethiopia, comes at a critical moment marked by regional uncertainty, energy transitions, tariff tensions, and evolving connectivity corridors.
• Taking place amid fragile peace following the Gaza ceasefire, the visit also commemorates 70 years of India–Oman diplomatic relations.
• This is Mr. Modi’s second visit to Oman after 2018, following Sultan Haitham bin Tarik’s visit to India in December 2023, underscoring renewed momentum in bilateral ties.
• This article highlights why PM Modi’s visit to Oman is strategically significant, as it deepens India’s oldest Gulf partnership amid regional instability, energy transitions, connectivity initiatives, and shifting geopolitical equations.

Oman as a Trusted and Balancing Partner

• Oman’s importance to India goes beyond geography or history.
• At a time when much of West Asia was ambivalent toward India, Oman consistently maintained open and friendly ties.
• Its foreign policy, rooted in moderation, mediation, and deliberate neutrality, has made it a rare island of stability in a conflict-prone region.
• A Strategic Pillar of India’s West Asia Policy
  • Oman is a key pillar of India’s West Asia engagement.
  • The relationship acquired a strategic dimension with the India–Oman Strategic Partnership Agreement in 2008, and Oman’s invitation as a guest nation during India’s G-20 Presidency in 2023 reflected this growing trust.
• Deep Defence and Security Cooperation
  • Defence ties are central to the partnership and are guided by a 2005 MoU on military cooperation.
  • Oman is the first Gulf country with which India conducts joint exercises involving all three defence services.
  • Since 2012–13, Indian naval ships have operated in the Gulf of Oman for anti-piracy missions, supported by Omani overflight and transit facilities.
  • The Duqm Port logistics agreement (2018) provides critical operational support to the Indian Navy and enhances India’s maritime presence amid rising Chinese naval activity.
• Growing Economic and Investment Links
  • Economic engagement has expanded steadily, with bilateral trade reaching $10.6 billion in FY 2024-25.
  • Omani FDI inflows into India total $605.57 million since 2000.
  • The Oman–India Joint Investment Fund (OIJIF) has invested about $600 million in India, reinforcing long-term economic cooperation.
• Fintech and Digital Public Infrastructure Cooperation
  • Fintech has emerged as a new area of convergence.
  • In 2022, Oman and India linked their payment systems through an MoU between the Central Bank of Oman and NPCI, leading to the launch of the RuPay debit card in Oman.
  • This marks a significant extension of India’s Digital Public Infrastructure (DPI) globally.

Expanding the India–Oman Partnership

• The visit provides an opportunity not only to review longstanding ties but also to set new benchmarks in bilateral cooperation across trade, defence, energy, connectivity, and technology.
• Trade and Economic Integration
  • A key outcome could be the signing of the India–Oman Comprehensive Economic Partnership Agreement (CEPA), making Oman the second West Asian country after the UAE to conclude such an agreement with India.
  • CEPA would help India diversify trade amid rising global tariff pressures, particularly from the United States.
• Connectivity and Strategic Corridors
  • Connectivity is central to discussions, with Oman expected to play a significant role in the India–Middle East–Europe Economic Corridor (IMEC) announced at the G-20 Summit in 2023, enhancing India’s access to regional and global markets.
• Energy and Green Transition Cooperation
  • Energy cooperation is likely to expand beyond hydrocarbons to include green hydrogen, renewable energy, and critical minerals.
  • Talks may also explore Oman holding strategic petroleum reserves in India, similar to arrangements with the UAE.
• Defence and Maritime Security
  • Defence ties may see a further boost through joint production facilities, potential supply of Tejas fighter aircraft, naval patrol vessels, radar systems, and Jaguar aircraft spare parts.
  • Counter-terrorism and anti-piracy cooperation are also expected to deepen.
• Emerging Areas: Space and Technology
  • Strategic engagement could extend to space cooperation, building on an agreement signed during Prime Minister Modi’s 2018 visit, reflecting growing trust in advanced and high-technology domains.

Strengthening People-Centric and Strategic Ties

• India and Oman are likely to deepen cooperation in education and health, with proposals to establish offshore campuses of leading Indian institutions such as IITs and IIMs in Oman.
• More than a routine diplomatic engagement, the visit reaffirms India’s oldest strategic partnership in the Gulf at a time of regional transformation.
• As India expands its economic and strategic presence in its extended neighbourhood, Oman remains a key partner, with potential breakthroughs across CEPA, green energy, connectivity, defence, education, and health, setting new benchmarks in bilateral relations.