India & Oman Adopts Vision Document to Expand Bilateral Cooperation

Narendra Modi, Prime Minister (PM) of India and Haitham Bin Tarik, the Sultan of Oman adopted the joint Vision document titled ‘A Partnership for the Future’ for strengthening bilateral cooperation in diverse areas and to scale up the partnership between India and Oman.

• The vision document was adopted on 16th December 2023 during the maiden visit of his Majesty Sultan Haitham bin Tarik, the Sultanate of Oman, to India
• Several Memorandum of Understandings (MoUs) and agreements were also signed during his visit.

Points to note:

i.At the invitation of Droupadi Murmu, President of India, Haitham Bin Tarik, the Sultan of Oman paid a 3 day visit to India from 15th to 17th December 2023.

ii.This marks the 1st state visit by Sultanate of Oman to India after 25 years. The last Sultan, the late His Majesty Sultan Qaboos’ visited India in 1997.

iii.His Majesty was accorded a ceremonial welcome at the Rashtrapati Bhawan in New Delhi, Delhi.

Note: The diplomatic relations between India and Oman were established in 1955 and the relationship was upgraded to Strategic partnership in 2008.

About the Joint Vision Document:

i.This joint vision underscores a shared vision, aligning the strategic goals of Oman Vision 2040, Oman’s national development blueprint, with India’s development objectives under ‘Amrit Kaal’.

ii.The vision document identifies key areas for collaboration, including:

• Maritime cooperation and connectivity.
• Energy security and green energy initiatives.
• Space, technologies, and applications.
• Digital payments and financial cooperation.
• Trade and Investment.
• Health, tourism, and hospitality.
• Information Technology (IT) & innovation.
• Agriculture and food security.

iii.It outlines specific action points in each identified area for effective implementation as a part of the roadmap for future collaboration between India and Oman.

MoUs and Agreements:

The MoUs and agreemnets signed during the visit of the Sultan of Oman were

i.Ministry of Culture, Sports and Youth, Government of the Sultanate of Oman and Ministry of Culture, Government of India(GoI) signed a MoU in the field of culture.

Signatories: Govind Mohan, Secretary (Ministry of Culture), India; His Excellency Issa Saleh Al Shibani, Ambassador of Sultanate of Oman to India.

ii.Ministry of Transport, Communications and Information Technology, Oman and Ministry of Electronics and Information Technology (MeitY), GoI signed a MoU in the field of information technology(IT)

Signatories: Amit Narang, Ambassador of India to Sultanate of Oman and His Excellency Issa Saleh Al Shibani

iii.Financial Intelligence Unit (FIU) of India and National Centre for Financial Information (FNCI), Oman, signed an MoU for cooperation in the exchange of intelligence related to money laundering, associated predicate offences and terrorism financing.

Signatories: Colonel Abdul Rahman Amer Al Kiyumi, Executive President of National Centre for Financial Information-Oman and Vivek Aggarwal, Director of FIU India.

iv.Oman and India signed an agreement related to the gainful employment of accompanying persons of official employees.

Signatories: Muktesh K. Pardeshi, Secretary (Consular, Passport, Visa and Overseas Indian Affairs (CPV& OIA)), Ministry of External Affairs(MEA) and His Excellency Issa Saleh Al Shibani

v.Dhofar University in Salalah, Oman and the Indian Council For Cultural Relations(ICCR), New Delhi, Delhi, signed a MoU to establish the ICCR Chair of Indian Studies- Hindi Language.

Signatories: Professor Amer Ali Abdullah Al Rawas,Vice-Chancellor of Dhofar University and Amit Narang.

vi.Heads of Terms for Investment in Oman India Joint Investment Fund (OIJIF-III) to be entered between Oman Investment Authority (OIA) and State Bank of India (SBI).

Key Highlights:

i.India and Oman also held discussions to advance the CEPA agreement, which would be India’s 2nd such pact in the Gulf after the United Arab Emirates (UAE).

• The agreement has the potential to propel this partnership and achieve a higher growth trajectory aligning with the immense potential of this historically close bilateral relationship.

Note: There is a remarkable growth in bilateral trade, doubling from USD 5.4 billion in 2020-21 to USD 12.3 billion in 2022-23.

ii.The two leaders appreciated a proposal by the Ministry of Culture of India, to recreate a maritime voyage of a stitched ship, crafted with ancient know-how in India.

• The tentative plan is for the ship to sail from the port of Mandvi in Gujarat to Muscat sometime in 2025- 26 followed by further voyages to other regions.

iii.Discussions were also made on the possibility of Oman utilising India’s digital payment system Unified Payments Interface (UPI) with a corresponding Omani platform, besides the exchange of views on trade in the Rupee.

iv.During the visit, an India-Oman Joint Commemorative Postage Stamp was released symbolizing the long-standing cultural and people-to-people relationship between India and Oman.

• The Joint Postage Stamp depicts traditional folk dances, artfully showcasing the cultural heritage of India and Oman.

3rd Tranche of OIJIF Announced between OIA and SBI to Strengthen Economic Ties of India and Oman

The 3rd tranche of the Oman-India Joint Investment Fund (OIJIF-III), has been announced as a significant development in trade and capital cooperation in the India-Oman economic partnership.

• The OIJIF worth USD 300 million (around Rs. 2,500 crores) aims to channel investments into the fastest-growing sectors of the Indian economy.
• The announcement of the 3rd tranche of the OIJIF not only represents a substantial financial commitment but also solidifies the long-term vision of both nations.

Note: The Indian economy is expected to see a growth rate of 6.3% in the current year (2023) and next year (2024).

About OIJIF:

i.The OIJIF was established as a 50:50 joint venture (JV) between the State Bank of India (SBI) and Oman Investment Authority (OIA) with the 1st tranche of USD 100 million and the 2nd one of USD 200 million.

ii.The initial 2 tranches captured the underlying belief of forging a very strong base of economic ties through direct capital investments in the growing sectors of the Indian economy.

iii.In the 3rd tranche of USD 300 million (with USD 50 million as OIA investment), the sum would be invested in a variety of sectors, most notably technology, health and pharmacy, banks and banking services, industries, and consumer services.

iv.The OIA established the 1st OIJIF in 2011, with a value of USD 100 million, in partnership with the SBI.

v.In 2017, the OIA established its 2nd portfolio with a USD 230 million fund that focused on medium-sized companies in the Indian market.

• The OIA also runs direct investments in India beyond the scheme of joint investment funds.

Recent related News:

Prime Minister (PM) of India Narendra Modi paid an official visit to Jakarta, Indonesia from 6th to 7th September 2023 at the invitation of Joko Widodo, President of the Republic of Indonesia.

About Oman:
Prime Minister and Sultan- His Majesty Sultan Haitham bin Tarik
Capital– Muscat
Currency– Omani Rial (OMR)