the region . India , too , maintains good relations with most of the countries in the region and is supportive of the Omani position .
Having established diplomatic relations since 1955 , relations between New Delhi and Muscat took a new turn when Indian President Dr . Shankar Dayal Sharma visited Oman in 1996 . Omani head of state Sultan Qaboos bin Said Al Said also visited India in 1997 . The very next year , Indian Prime Minister Atal Bihari Vajpayee visited Oman and , later , in 2008 Dr . Manmohan Singh visited Muscat . These visits of leaders from both sides went a long way towards strengthening the close relationship enjoyed by the two countries .
Since 2014 , Omani foreign minister Yusuf bin Alawi has visited India thrice . Indian Prime Minister Narendra Modi , who came to power in 2014 , has frequently visited the region to boost bilateral relations , attract investments , and increase trade co-operation between India and the other West Asian countries , including Oman .
Most recently , PM Modi visited Oman in February 2018 and signed eight agreements , including pacts on bilateral cooperation in the field of defence , health and tourism . During the meeting between the leaders of the two countries in the course of the visit , both countries expressed their desire to intensify bilateral ties in the areas of energy , food , security , mining , trade investment and other important sectors .
During his visit to Oman , PM Modi also addressed a gathering of members of the Indian diaspora residing in Oman at the Sultan Qaboos Sports Complex in Muscat . He also visited the Shiva Temple , which is 125 years old and was made by the Gujarati Indian community , as well as the Sultan Qaboos Grand Mosque , the biggest mosque in Oman . There is a significant Indian diaspora in the Gulf region , a larger number of whom live and work in Oman , helping the Indian economy by sending around $ 30 billion in remittances annually . These expatriates also help to facilitate a close bond between India and Oman through their warm interactions with the Omani people .
In the coming years , relations between India and Oman are expected to reach a high point with greater economic flow and cultural exchange in both directions .
Economic transactions between the two countries are improving by the day . Oman exports most of its crude oil to Asia . India emerged as a key importer of Oman ’ s oil after China in 2017 , importing about 7.6 per cent of Oman ’ s total oil exports . Further , in April 2018 , the Indian Oil Corporation ( OIC ) acquired Royal Dutch Shell ’ s 17 percent stake in the Makhaizna oil fields in Oman for $ 329 million . This deal is significant because the Makhaizna oil fields contribute about 13 percent of the total Omani crude oil production . However , Oman is looking to reduce its dependency on oil by 50 percent . In this regard , Oman has come up with a 9th Development Plan ( 2016-2020 ) wherein the country is actively exploring alternatives which can prove beneficial for Indian companies and stakeholders in the future .
Indian and Omani companies have been working on various joint ventures . An India- Oman joint venture in the fertiliser sector was setup between IFFCO and KRIBHCO . Further , an Oman-India Joint Investment Fund ( OIJIF ) has been set up by the State Bank of India and Oman ’ s State General Reserve Fund to finance and facilitate bilateral investments . OIJIF , after raising its first tranche of $ 100 million and fully investing in India , has started investing investing its snd tranche of $ 220 million . and Oman have also set up institutional mechanisms like the Joint Commission Meeting ( JCM ) and the Joint Business Council ( JBC ) to facilitate and direct bilateral economic engagement . The 8th session of JCM and the 9th session of JBC was held hecently in Muscat on 16-17 July 2018 . According to some reports , there are over 3,000 Indo-Omani Joint Ventures in Oman valued at over $ 7.5 billion . Interestingly , Indian investments in Oman are worth around $ 4.5 billion . The total trade between the two countries reached US $ 6.7 billion in 2017- 18 registering a 67.5 % rise increase from $ 4 billion in 2016-17 . It may be recalled that India-Oman bilateral trade fell in in 2014-15 and 2015-16 which could be linked to drop in oil prices and fall in Oman ’ s global trade .
In recent years , defence cooperation has emerged as a core focal point of the strategic partnership between New Delhi and Muscat . This partnership has strengthened owing to the regular visits of defence ministers from both sides . India ’ s Defence Minister visited Oman in
12 • INDIA-OMAN • 2018