India-Oman Free Trade Strengthens Ties Amid China’s Growing Threat in the Indian Ocean

India is forging a stronger economic and strategic partnership with Oman, a Gulf nation that maintains robust ties with both India and the United States. This relationship is increasingly being seen as more stable and mutually beneficial than India’s engagements with Qatar or Saudi Arabia.

India-Oman Relations: A New Chapter

Following Prime Minister Narendra Modi’s recent visit to Oman, the two nations have signed a comprehensive economic partnership agreement, marking a significant milestone. Oman now joins a select group of countries having Free Trade Agreements (FTAs) with both India and the U.S., offering opportunities for trade, investment, and skilled manpower exchange.

Oman’s liberal policies, strategic location, and industrial expertise make it a favorable destination for Indian investors. Unlike Qatar and Saudi Arabia, where labor camps have been controversial, Oman focuses on educated labor and sustainable economic policies, reducing security risks and fostering a positive environment for foreign investments.

Strategic Importance in the Indian Ocean

India’s economic growth requires a strong military presence in the Indian Ocean Basin. China continues to challenge India’s regional role, posing threats through aggressive fishing fleets and maritime activities. Chinese fishing vessels frequently violate Oman’s territorial waters, affecting local ecosystems. Continuous monitoring by India could limit China’s influence without direct confrontation.

Strengthening Maritime Partnerships

India can expand its influence by enhancing coast guard and maritime partnerships with Oman and Yemen, safeguarding trade routes and territorial waters. Such cooperation will help protect the freedom of navigation against illegal activities, including arms smuggling and unauthorized Chinese incursions.

Broader Regional Implications

Oman is not alone in expressing concerns over China; countries such as Somaliland, Yemen, Kenya, and Mozambique have also reported issues with Chinese maritime activities. By providing a transparent and proactive Indian model of monitoring and maritime cooperation, India can establish itself as a trusted partner in the Indian Ocean, while countering China’s covert expansionist strategies.

This strategic and economic alignment with Oman underscores India’s dual approach: strengthening free trade and reinforcing maritime security, securing both economic growth and regional stability in the face of growing Chinese assertiveness.

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