India-Oman relations

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India-Oman relations

India-Oman relations

News: Recently, India and Oman have adopted the India Oman Joint Vision Partnership For the Future, setting the stage for bilateral cooperation and charting pathways for future collaboration between the two countries.

Background of India-Oman relations:
• India and Oman share ancient historical ties that span over 5,000 years. These relations were shaped by maritime trade links, cultural exchanges, and geographical proximity
• India and Oman established diplomatic relations in 1955, elevated to a strategic partnership in 2008, with Oman holding a pivotal position as India’s primary defence partner in the Gulf region.
• Oman is a strategic partner of India in the Gulf region. It is a key interlocutor at Gulf Cooperation Council (GCC), Arab League, and Indian Ocean Rim Association (IORA) fora.
• The Joint Military Cooperation Committee (JMCC) is a key forum for defence engagement.
• Joint Commission Meeting (JCM) and Joint Business Council (JBC) oversee economic cooperation.
• The proposed India-Middle-East-Europe Connectivity Corridor (IMEEC) project will see Oman playing an important role in India’s connectivity ambitions.
• There are over 7 lakh Indians in Oman with presence in significant professions.

Oman’s strategic importance for India:
• Oman holds strategic importance for India due to its position at the gateway of the Strait of Hormuz, a crucial passage for one-fifth of India’s oil imports.
• All three branches of the Indian armed forces engage in regular bilateral exercises with Oman, fostering trust and cooperation. India secured the Port of Duqm in Oman for military use and logistical support. The move aims to enhance India’s presence in the Indian Ocean region, countering Chinese influence.

What are the key highlights of the bilateral meet?

Agreements and Collaborations	Signed agreements encompass various sectors, including information technology, combating financial crimes, and cultural exchanges. Establishment of a Hindi chair of the Indian Council of Cultural Relations (ICCR) in Oman.
Comprehensive Economic Partnership Agreement (CEPA)	There are ongoing discussions to finalize a CEPA between the two nations where substantial progress is made, with a focus on concluding the agreement promptly to enhance economic ties.
Oman-India Investment Fund	Announcement of the third tranche of the Oman-India investment fund, totaling USD 300 million.
Collaboration in Digital Payments	Exploring the potential use of India’s UPI (Unified Payments Interface) in collaboration with an Omani platform. There is a consideration of conducting trade in Rupees.

Conclusion
• In a global market with persistent volatility, improving relations with Oman are important for India to address its energy needs. While energy needs are paramount, India’s Indo-Pacific vision as well as security needs become vital to ensure free movement of Indian goods and products.