• PM Narendra Modi’s Oman visit during his West Asia–Africa tour coincides with 70 years of India–Oman diplomatic ties and rising regional churn.

India–Oman Bilateral Relations

History and evolution:

• Civilisational maritime bridge: India–Oman ties run through the Indian Ocean trading system, where the Arabian Sea acted as a connector for commerce, culture and navigation traditions.
• People-to-people and diaspora depth: Long-standing movement of traders, seafarers and workers created trust that outlasted modern geopolitics.
• Early strategic comfort in a sensitive region: When parts of the region were ambivalent about India, Oman maintained steady engagement based on moderation and neutrality.
• Institutionalisation of partnership (2005–2008 onwards): Defence MoU (2005) and Strategic Partnership (2008) gave the relationship a formal security and political spine.
• 2018–2025 phase: Strategic + digital + connectivity: The relationship expanded into Duqm access, fintech linkages and corridor conversations (IMEC).Eg: RuPay launch in Oman (2022) shows India’s DPI diplomacy moving beyond rhetoric.

Sectors of cooperation

1. Defence and maritime security:-

• Duqm as a strategic enabler: Duqm logistics access supports Indian naval turnaround, replenishment and operational flexibility in the western IOR.
• Joint exercises and interoperability: Regular tri-service engagement builds habits of cooperation for contingencies and HADR missions.
• Overflight and transit support: Operational access enhances India’s reach for evacuation, disaster response and crisis-time movement.

2. Trade, investment and business:-

• Growing trade and JV ecosystem: Beyond trade value, the relationship has a JV backbone that anchors continuity even during political shocks.Eg: Over 6,000 India–Oman joint ventures in Oman with estimated investment ~$776 mn.
• Manufacturing and logistics linkages: Free zones and port-led projects can integrate Indian firms into Gulf–Africa supply chains.Eg: Indian companies are major investors in Sohar and Salalah Free Zones.

3. Fintech and digital public infrastructure:-

• Payment connectivity: Linked payment systems reduce transaction friction for diaspora remittances, tourism and SMEs.Eg: Central Bank of Oman–NPCI MoU (Oct 2022) and RuPay in Oman created a visible DPI milestone.

4. Energy transition and future fuels:-

• Beyond oil: green energy convergence: Both sides can align on green hydrogen, renewables, and critical minerals to future-proof energy security.

5. Education and health:-

• Knowledge corridor potential: Offshore campuses and skill partnerships can create long-term influence and workforce linkages.

Challenges associated

• Regional volatility risk: West Asia’s conflict cycles can disrupt trade routes, investor confidence, and diaspora safety planning.
• Trade concentration and limited diversification: High dependence on a few commodities reduces resilience and limits CEPA’s early “headline gains”. Eg: Without value-chain expansion, trade growth can remain price-driven instead of productivity-driven.
• Great power competition in the IOR: Strategic space is contested, and every logistics/port arrangement attracts geopolitical signalling. Eg: Oman’s location enables monitoring of PLA Navy activity, but also raises competitive sensitivities.
• Implementation gap in agreements: Announcements can outpace execution due to standards, customs processes, and regulatory alignment issues.
• Diaspora welfare and labour market shifts: Economic slowdowns or policy changes can affect Indian workers, remittances and community stability.

Way ahead:

• Fast-track CEPA with sectoral “early harvest” wins: Prioritise services, MSME market access, standards harmonisation, and logistics facilitation for quick impact.
• Deepen Duqm-centric maritime cooperation: Expand joint patrol coordination, HADR drills, and anti-piracy information sharing in the Gulf of Oman.
• Build a green energy partnership roadmap: Create joint pilots on green hydrogen value chains and renewable-linked industrial clusters.
• Scale fintech interoperability beyond RuPay: Move from card presence to wider acceptance, cross-border UPI-like rails, and SME payment solutions.
• People-first cooperation: skills, healthcare, and mobility: Use education/health partnerships to build trust that survives geopolitical swings.

Conclusion:

• The newly signed India-Oman Comprehensive Economic Partnership Agreement (CEPA) is poised to transform a strong civilisational and strategic relationship into a more productive economic engine. By leveraging key initiatives in trade, maritime security via the Duqm Port, green energy, and fintech innovation, the partnership aims to enhance economic growth and regional resilience. Sustained delivery, diversification, and people-centric outcomes in a volatile region will ultimately determine the full scale of this strategic partnership.The proposed CEPA can turn a strong relationship into a more productive economic engine. Sustained delivery, diversification and people-centric outcomes will decide how far this partnership scales in a volatile region.