EDITORIAL ANALYSIS : A time-honored connect that will help bridge the Gulf

Source: The Hindu

Prelims: Current events of international importance, west Asia, saudi-Iran conflict, Arab League, OPEC, OPEC+, G20 etc

Mains GS Paper II: Bilateral, regional and global grouping and agreements involving India or affecting India’s interests.

ARTICLE HIGHLIGHTS

• The Sultan of Oman is visiting India on a state visit.
  • This is his first visit to India after taking over in January 2020.

INSIGHTS ON THE ISSUE

Context

India-Oman Relations:

• The two countries across the Arabian Sea are linked by geography, history and culture and enjoy warm and cordial relations, which are attributed to historical maritime trade linkages.
• The Sultanate of Oman is a strategic partner of India in the Gulf and an important interlocutor at the Gulf Cooperation Council (GCC), Arab League and Indian Ocean Rim Association (IORA) fora.
• Gandhi Peace Prize 2019 was conferred on Late HM Sultan Qaboos in recognition of his leadership in strengthening the ties between India & Oman and his efforts to promote peace in the Gulf region.
• Defense Relations:
  • Joint Military Cooperation Committee (JMCC):
    • The JMCC is the highest forum of engagement between India and Oman in the field of defense.
  • Military Exercises:
    • Army exercise: Al Najah
    • Air Force exercise: Eastern Bridge
    • Naval Exercise: Naseem Al Bahr
  • Economic & Commercial Relations:
    • Institutional mechanisms like Joint Commission Meeting (JCM) and Joint Business Council (JBC) oversee economic cooperation between India and Oman.
    • India is among Oman’s top trading partners.
      • India is the 2^nd largest market for Oman’s crude oil exports for the year 2022 after China.
      • India is also the 4^th largest market for Oman’s non-oil exports for the year 2022 after UAE, US and Saudi Arabia and 2nd largest source of its import after UAE.
    • Indian companies have invested in Oman in sectors like iron and steel, cement, fertilizers, textile etc.
    • India-Oman Joint Investment Fund (OIJIF), a JV between State Bank of India and State General Reserve Fund (SGRF) of Oman, a special purpose vehicle to invest in India, has been operational.
    • Indian Community in Oman:
      • There are about 6.2 lakh Indians in Oman, of which about 4.8 lakh are workers and professionals. There are Indian families living in Oman for more than 150-200 years.

Oman’s role:

• Oman is the closest neighbor to India in the Arabian Gulf region.
• With key Omani ports abutting the coastline along the Arabian Sea as well as the Gulf of Oman leading into the Persian Gulf and towards the Gulf of Aden
  • Oman’s location is of utmost strategic importance to India.
• Along with Saudi Arabia and the United Arab Emirates (UAE), Oman completes the trio of key strategic partners of India in the Gulf region.
• During the Cold War era, and even thereafter: The Arab world was largely ambivalent towards India and was often soft and supportive of Pakistan
  • It was Oman which kept its doors open to India.
• Oman has pursued a foreign policy which is based on the twin strands of moderation and mediation
  • It includes a policy of deliberate neutrality in dealing with regional issues and conflicts.
• It has carefully balanced its close relations with the western powers and the Gulf Cooperation Council (GCC) countries
• It has a pragmatic approach to neighboring Iran, maintaining that the Straits of Hormuz will not be closed.
• Even during the Persian Gulf crisis in 2019, when the United States and Iran were on the brink of a military conflict
  • It was Oman which played a key role in diffusing tensions.
• Oman’s key role in the Iran nuclear deal in July 2015 is well documented and acknowledged too.
• During the GCC-Qatar diplomatic stand-off, Oman refused to join Saudi Arabia and other countries in breaking diplomatic ties with Qatar
• Much before the Abraham Accords were signed between Israel, the UAE and Bahrain in 2020: The Israeli Prime Minister had made a surprise visit to Oman.

India-Oman strategic partnership

●      Oman is a crucial pillar of India’s West Asia policy, with their multi-faceted engagement increasingly taking on a more strategic shape in recent decades.

●      The India-Oman strategic partnership was signed during the Indian Prime Minister’s visit to Oman in 2008

●      It is based on twin pillars of mutual trust and shared interests.

●      Oman was one of the few countries to have been invited by India to its G-20 presidency as a guest nation.

Defense and security engagement:

●      It forms a key pillar of this strategic partnership and is governed by a memorandum of understanding (MoU) signed in 2005.

●      Oman is the first Gulf country with which all the three wings of India’s defense forces hold joint exercises.

●      Since 2012-13, an Indian naval ship has remained on duty in the Gulf of Oman for anti-piracy operations.

●      Oman has allowed overflights/transit by Indian military aircraft too.

●      Both countries have cooperated in ensuring maritime security in the Indian Ocean region.

●      During the Persian Gulf crisis in 2019: Indian Navy launched ‘Operation Sankalp’ to ensure the safe passage of Indian flagged ships which most often operated off the coast of Oman.

●      The MoU on Duqm Port is a historic landmark in our security cooperation

○      It provides

■    basing facilities

■    Operational Turn Round and other logistics facilities to Indian naval ships operating in the region.

Trade and commerce:

• It forms important pillar of engagement.
• Bilateral trade during FY 2022-23 reached $12.388 billion.
• There are over 6,000 India-Oman joint ventures in Oman, with an estimated investment of over $7.5 billion.
• India was the second largest market for Oman’s crude oil exports for the year 2022 after China.
• In October 2022, India and Oman launched the Rupay debit card in Oman
  • India’s initiative of promoting digital public infrastructure (DPI) in the world.

Steps taken for further cooperation:

• India and Oman are increasing engagement in strategic areas such as space cooperation
  • MoU on this was signed during the PM’s visit.
• The possibility of an agreement on joint exploration of rare earth metals, vital to modern electronic equipment, could add strength to the partnership.
• The proposed India-Middle-East-Europe Connectivity Corridor (IMEEC) infrastructure project to link India to Europe across West Asia could also see Oman playing an important role.
• There is a proposal from the South Asia Gas Enterprise (SAGE), a private consortium based in India, to lay a 1,400 km long deep-sea pipeline from Oman to India for the transfer of gas.

Way Forward

• As a part of its broader global outlook and its outreach in the extended neighborhood, India is seeking deeper engagement and collaboration in West Asia, of which Oman is an important pillar.
• Security challenges in the region have a ripple effect in India and, therefore, any instability in the region has a direct bearing on the safety and security of millions of Indians working there
  • India’s energy security and its steadily growing trade relations.
• Apart from being India’s oldest strategic partner in the region and closest neighbor, Oman is an integral part of all important groupings in the region;
  • the GCC
  • the Organisation of Islamic Cooperation
  • the Arab League.
  • Its ability to manage rival ideologies and power games in the region makes it vitally important to India.
• Both countries consider themselves as ambassadors of peace and enjoy goodwill across ideologies in the world.
  • Oman is India’s gateway to West Asia.

QUESTION FOR PRACTICE

How will I2U2 (India, Israel, UAE and USA) grouping transform India’s Position in global politics?(UPSC 2022) (200 WORDS, 10 MARKS)