Historical Context
Oman and India share one of the oldest bilateral relationships in the Gulf, predating the modern nation-state by centuries. Maritime trade between the Omani coast and the Indian subcontinent has flourished for over two millennia, with Muscat historically serving as a vital node in Indian Ocean commerce. The Indian community in Oman – numbering approximately 700,000 – is the largest expatriate group and plays a vital role in the Sultanate’s economy. Diplomatic relations have been consistently warm, underpinned by personal ties between leadership and a shared interest in Indian Ocean stability.
Economic Partnership
India is among Oman’s top five trading partners, with bilateral trade exceeding USD 10 billion annually. Key trade flows include Omani oil and gas exports to India and Indian food products, manufactured goods, and machinery flowing to Oman. Investment ties are deepening through the India-Oman Joint Investment Fund and growing Indian corporate presence in Oman’s free zones. The Duqm Special Economic Zone has attracted significant Indian industrial investment, including a sebacic acid plant and proposed refinery projects. Remittances from Indian workers in Oman represent a significant financial flow.
Strategic Dimensions
Security cooperation includes naval exercises, defence agreements granting India limited access to Omani port facilities, and intelligence sharing. India views Oman as a critical partner for Indian Ocean security and a counterbalance to Chinese influence in the region. Oman benefits from India’s growing economic weight and its demand for energy imports. Both nations coordinate on anti-piracy operations and maritime domain awareness. The relationship extends to space cooperation, with India’s ISRO providing satellite services.
Future Outlook
The Oman-India relationship is poised for significant deepening. India’s growing energy import needs align with Oman’s production capacity. The India-Middle East-Europe Economic Corridor (IMEC) could position Oman as a logistics link. Education partnerships, technology transfer, and healthcare cooperation represent growth areas. The challenge is managing Omanisation pressures that affect Indian workers while sustaining the economic complementarity that underpins the relationship. This partnership is arguably Oman’s most consequential non-GCC bilateral relationship.