fluctuations in recent years . In 2017-18 , it reachedthe tune of $ 6.7 billion . Over 3000 companies are involved in joint ventures between India and Oman . Oman has invited India to participate in the Free Economic Zone in Dqum , Sohar and Salaha . Further , the India-Oman Joint Investment Fund was created to facilitate bilateral investment . India requires huge funds to complete its development process . GCC countries are capable of making huge investments in India , but this has not been explored fully so far . If Oman can participate vigorously in this direction , it will make the bond between India and Oman stronger .
On the other hand , India ’ s experience of economic growth can be beneficial for Oman , especially at a time when Oman is looking to diversify its economy . Oman ’ s Vision 2020 is a blue print for the diversification of its economy . Naturally , this is likely to pave the way and open more opportunities for Indian business and investment . India can , thus , become a partner in Oman ’ s economic diversification process , which is proving to be difficult process in most GCC countries . It is hoped that Oman ’ s effort to diversify its economy is not going to face the same fate as many other Gulf countries .
The nature of Oman ’ s economy shapes its economic relations with India which , presently , are mostly non-oil items based . Some of the core areas are engineering , waste management , manufacturing , finance and capital , software solutions , and so on . India exports textiles , garments , electronics , iron and steel among many other things to Oman . In return , India imports fertiliser , especially urea , from Oman .
Oman ’ s GDP is projected to grow at the rate of 2.9 per cent in 2020 . Low oil prices and fluctuations in the international oil market have affected Oman ’ s economy ; it joined the OPEC plus forum to participate in production cuts along with other countries to help raise the price of oil , but the oil market remains volatile . To withstand the shock fromthe fluctuations in the oil market , a deal between BP and Oman LNG has been struck . Oman has further taken the initiative to build its own strategic reserves in Ras Markaz . India has , thus , rightly chosen Oman
India-Oman relations are extremely significant as the latter can keep pace with India ’ s ambitions and is a country that remains a stable and peaceful ally to India in the Middle East . Oman also supports India ’ s bid to get a permanent seat in the UN Security Council . as a partner for the development of its own strategic oil reserves .
Recently , the Indian Oil Corporation acquired Royal Dutch Shell ’ s 17 percent stake in theMakhaizna oil field in Oman . This is expected to cement India ’ s energy relations with Oman .
Oman also has an important role to play in securing India ’ s energy needs . The Middle East to India Deep Water Pipeline ( MEIDP ) is a step towards that direction . It was planned that through this pipeline , Iranian gas from Chabahar via Oman will come to India . Even though India ’ s oil imports from Oman are marginal , and in 2017 it declined further by 52.4 percent to 1.90 million barrels , Oman can nevertheless play a useful role with regard to transportation and become a reliable partner in ensuring India ’ s energy security . Oman is the 7th largest producer of oil in West Asia and 21st in the world [ 2014 ]. From 2007 onwards , Oman ’ s oil production has reflected upward trends . However , after the American pull out from the Iran Nuclear Deal , the deep water project seems to be in trouble .
India-Oman relations are extremely significant as the latter can keep pace with India ’ s ambitions and is a country that remains a stable and peaceful ally to India in the Middle East . Oman also supports India ’ s bid to get a permanent seat in the UN Security Council . Further , Oman ’ s political stability assures India ’ s business community the possibility to explore and make investmentsin Oman .
Off late , Oman has been playing the role of mediator in the region . Starting from its back channel diplomacy to help broker the Iranian Nuclear Deal to its efforts to resolve the ongoing crisis in Yemen as well as the recent issue involving Qatar , Oman has shown its mettle as an arbiter of peace and security in the region . These unique characteristics along with its political stability ensure Oman a leading role in India ’ s foreign policy towards the region .
* Dr . Sima Baidya is a Ph . D , an Assistant Professor at the Centre for West Asian Studies , School of International Studies , Jawaharlal Nehru University , New Delhi .
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