PYQ Relevance[UPSC 2025] “Energy security constitutes the dominant kingpin of India’s foreign policy, and is linked with India’s overarching influence in Middle Eastern countries.” How would you integrate energy security with India’s foreign policy trajectories in the coming years? Linkage: This question is directly relevant to GS-II as the India-Oman article demonstrates how energy security is institutionalised through strategic partnerships in West Asia. India-Oman cooperation in hydrocarbons, strategic petroleum storage, renewables, and maritime access at Duqm illustrates the integration of energy diplomacy with regional influence. |
Mentor’s Comment
India-Oman relations have often been described as stable but understated. The Prime Minister’s December 2024 visit to Oman marks a structural deepening of this relationship, shifting it from traditional goodwill diplomacy to strategic, economic, and technological convergence. The visit reflects India’s evolving Gulf policy amid geopolitical churn in West Asia and the Indian Ocean Region.
Introduction
The visit of Prime Minister Narendra Modi to Oman in December 2024 is not a routine diplomatic engagement. It coincides with 70 years of diplomatic relations and takes place amid heightened regional instability, energy transition pressures, and maritime security challenges in West Asia. Oman’s consistent neutrality, strategic geography, and expanding cooperation with India elevate this visit into a significant recalibration of India’s Gulf engagement.
Why in the News?
The December 17, 2024 visit marks 70 years of India-Oman diplomatic relations and follows closely after Sultan Haitham bin Tarik’s visit to India in December 2023. It consolidates Oman’s role as a balancing power in West Asia, distinct from polarized regional blocs. The visit builds on major milestones, India-Oman strategic partnership (2008), logistics agreement at Duqm (2018), and rising defence, trade, digital, and investment cooperation.
India-Oman Relations: From Historical Ties to Strategic Convergence
Historical Foundations and Political Trust
- Civilisational Linkages: Longstanding maritime and commercial exchanges rooted in the Indian Ocean trade network.
- Diplomatic Milestone: Completion of 70 years of formal diplomatic relations in 2024.
- Political Continuity: Reciprocal high-level visits, including the Sultan of Oman’s India visit in 2023.
Oman as a Balancing Actor in West Asia
- Strategic Neutrality: Maintains relations across regional divides, including Iran, Gulf states, and Western powers.
- Conflict Mediation: Pursues moderation, dialogue, and neutrality as foreign policy pillars.
- India’s Advantage: Enables stable engagement unaffected by regional rivalries.
Strategic Significance of Oman for India
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Defence and Security Cooperation as a Strategic Pillar
Military Cooperation and Access
- Institutional Framework: Defence cooperation agreement signed in 2005.
- Joint Exercises: Regular tri-service exercises, including naval, air, and ground components.
- Overflight and Transit Access: Enables Indian military logistics and rapid mobility.
Maritime Security and Indian Ocean Presence
- Duqm Port Agreement (2018): Provides logistical access for Indian naval vessels.
- Geostrategic Location: Overlooks the Gulf of Oman and Arabian Sea.
- Security Impact: Facilitates monitoring of Chinese PLA Navy activity and safeguards Sea Lines of Communication (SLOCs).
Economic and Investment Engagement: Expanding the Second Pillar
Trade and Investment Growth
- Bilateral Trade: Crossed USD 6.1 billion in FY 2024-25.
- FDI Inflows: Cumulative Omani investment in India exceeded USD 7.2 billion by March 2025.
- Growth Trend: Reflects steady expansion in energy, logistics, and manufacturing.
Joint Investment Platforms
- Oman-India Joint Investment Fund (OIJIF): Established in 2010.
- Investment Scale: Over USD 600 million invested in India, with USD 300 million announced in 2023.
- Sectoral Focus: Infrastructure, logistics, and strategic assets.
Digital, Financial, and Emerging Technology Cooperation
Fintech and Digital Public Infrastructure
- UPI-Oman Linkage: MoU signed in October 2022 between Oman’s Central Bank and NPCI.
- Digital Footprint: Oman becomes a key overseas partner in India’s DPI outreach.
- Outcome: Facilitates cross-border payments and financial inclusion
Trade Facilitation and Economic Agreements
- CEPA Negotiations: India-Oman Comprehensive Economic Partnership Agreement under discussion.
- Trade Diversification: Reduces dependency on traditional energy imports.
Energy Transition and Strategic Resources
Hydrocarbons and Energy Security
- Strategic Petroleum Reserves: Oman holds renewable storage agreements with India.
- Energy Stability: Ensures supply security during global disruptions.
Green Energy Cooperation
- Energy Transition: Collaboration in renewables and clean energy technologies.
- Long-term Alignment: Supports India’s climate and decarbonisation goals.
Education, Health, and People-to-People Linkages
Institutional Collaboration
- Higher Education: Potential establishment of IIT and IIM campuses in Oman.
- Health Cooperation: Expansion of medical education and healthcare partnerships.
- Human Capital: Strengthens India’s soft power and skill export footprint.
Conclusion
The India-Oman relationship is transitioning from traditional friendship to structured strategic partnership. Defence logistics, economic investment, digital connectivity, and energy security together position Oman as a cornerstone of India’s Gulf and Indian Ocean strategy. The visit sets new benchmarks for cooperation in a rapidly evolving regional order.
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