India - Oman Relations

The Sultanate of Oman is a strategic partner in the Gulf and an important interlocutor in the bilateral, AGCC and OIC contexts. Oman also accords a high priority to its ties with India. India and Oman are linked by geography, history and culture. Both countries enjoy warm and cordial relations, which can be ascribed to historical maritime trade linkages, intimacy of the royal family with India and the seminal role of the Indian expatriate community in the building of Oman, which is acknowledged by the Omani Government.

2. Recent Bilateral Visits:

From India:

Dr. - November 2008  Minister of Overseas Indian Affairs Shri Ravi- June 2009  Former President of India Dr. A P J Abdul Kalam November 2009  Minister for New & Renewable Energy Dr. - January, 2010  Minister of State for Foreign Affairs Dr. - February, 2010  Minister of Defence Shri A K. Antony - May 2010  Minister of Commerce & Industry Shri , - September 2010  Minister of State for Corporate and Minority Affairs Shri - November 2010  Deputy Chairman of Planning Commission Dr. Montek Singh Ahluwalia – December 2010  Minister of State for External Affairs Shri E. Ahamed – June 2011 and January 2012  National Security Adviser, Shri Shiv Shankar Menon- March 3-5, 2012  Minister of Overseas Indian Affairs Shri Vayalar Ravi-March 6-8, 2012

From Oman:

 Deputy Prime Minister for the Council of Ministers of Oman Sayyid Fahd bin Mehmoud Al Said - December 2007.  Minister of Tourism of Oman Dr. Rajiha bint Abdul Ameer bin Ali - April 2008  Minister of Oil & Gas Dr. Mohammed bin Hamad al Rumhi -May 2009.  Minister of Commerce & Industry Maqbool Ali Sultan - September, 2009  Chairman of the State Council Yahya Bin Mahfoudh Al Mantheri - December 2009  Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Ahmed bin Abdulnabi Macki - July 2010  Minister Responsible for Foreign Affairs Yousuf bin Alawi bin Abdullah - October 2010  Minister of Commerce & Industry Maqbool bin Ali bin Sultan – January 2011  Minister Responsible for Defence Affairs Sayyid Badr bin Saud al Busaidi- December 2011  Minister of Agriculture & Fisheries Dr. Fuad bin Ja’afar bin Mohammed al Sajwani- March 2012  Chairman of Tender Board of Oman Dr. Rasheed bin Al Safi bin Khamis Al Huraibi – February 2012.  Chairman of the State Financial and Administrative Audit Institution (SFAI) Sheikh Nasser bin Hilal al Mawali – May 2012.

3. Some prominent existing bilateral agreements are: MoUs on Combating Crime, Cooperation in Agriculture, Civil Aviation, Cooperation between the State Audit Institution of Oman and the office of the Comptroller and Auditor General of India, Avoidance of Double Taxation, Bilateral Investment Promotion and Protection, Treaty of Extradition, MoU on Manpower, MoU on Joint Investment Fund and MoU on Cultural Cooperation, etc.

4. India awaits the visit of His Majesty Sultan Qaboos Bin Said Al Said to India to receive the Jawaharlal Nehru Award for International Understanding for the year 2004.

5. During the visit of Prime Minister Dr. Manmohan Singh to Muscat from 8-9 November 2008, it was agreed that the historical bilateral ties should be transformed into a strategic partnership. Pursuant to the decision, in December 2010, the Higher Committee on Economic Cooperation, led by Mohammed bin Al Zubair, Adviser to HM the Sultan for Economic Planning and Dr. Montek Singh Ahluwalia, Deputy Chairman of Planning Commission signed its report which identified nine areas of cooperation i.e. agriculture, healthcare, infrastructure, tourism, chemicals & fertilizers, education, oil & gas, power and mining.

6. Annual Strategic Consultative Group Meetings were started at the Secretary – level in 2003 to provide a forum for open and frank exchange of views on regional and international issues. The 8th meeting of India-Oman Strategic Consultative Group (IOSCG) was held in New Delhi on September 19, 2011. India and Oman have constituted Parliamentary Friendship Group members of which are expected to meet shortly.

7. Indian naval ships on anti-piracy missions regularly visit Omani ports for operational turn-around (OTR). India’s aircraft carrier INS Viraat called at Sultan Qaboos Port, Muscat from June 21-23, 2012 on its first-ever visit to Oman. 8. Under the ITEC programme, during the year 2012-13 GOI has provided an enhanced allocation of 85 slots for Omani nationals to avail of training facilities in diverse areas.

9. Bilateral Trade and Economy

Some important facts are as follows:

 India ranked fifth largest source of imports into Oman after the UAE, Japan, United States and China in year 2010.  According to the Central Bank of Oman (CBO) Annual Report for 2011, India retained its position as the second largest destination for Omani non-oil exports for the third consecutive year during 2011. Non-oil exports of Oman soared 27.7% to reach a value of RO 413.1 million in 2011, up from RO 323.4 million a year earlier. As a percentage of the total Omani non-oil exports, India accounted for a 13.6% share last year, up from 13.2 % in 2010, and 11.9% a year earlier.  Alpen Capital Investment Bank’s report of May 20, places Oman as the second biggest GCC investor in India and records that Oman's cumulative FDI has grown from $ 24 million in 2005 to $ 340 million as of January 2012.  Balance of trade is in Oman’s favour due to export of fertilizers and spot purchase of oil & gas by India.  Major items of Indian exports are textiles and garments, machinery and equipment, electrical and electronic items, chemicals, iron and steel products in addition to traditional items like tea, coffee, spices, rice and meat products and seafood.  Major Omani export commodities are urea, LNG (through spot purchase), polypropylene, lubricating oil, dates and chromite ore.  Oman Container Lines cargo shipping company launched from July 2012 a direct cargo ‘India Express’ shipping service between Nhava Sheva port in India and Salalah port in Oman. Bilateral Trade (Source: DGFT): figures in US$ million

S.No. \Year 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 (P) 1 EXPORT 630.97 939.43 779.04 1,032.93 1,151.70 1,322.31 2 %Growth - 48.89 -17.07 32.59 11.5 - 3 IMPORT 458.9 1,141.46 1,205.46 3,499.89 4,002.07 3,329.89 4 %Growth - 148.74 5.61 190.34 14.35 - 5 TOTAL 1,089.87 2,080.88 1,984.50 4,532.82 5,153.77 4,652.19 TRADE 6 %Growth - 90.93 -4.63 128.41 13.7 -

10. Different institutional mechanisms like Joint Commission Meeting (JCM), Joint Business Council (JBC) have been set up to oversee economic cooperation between India and Oman. The 6th Session of JCM was held in Muscat on 5th September 2010. On the sidelines of the JCM, the 7th session of JBC involving FICCI was also organized on 5th September 2010 in Muscat. CII is the partner institution from India for India-GCC Industrial Forum, the 3rd edition of which was held in Mumbai on May 29-30, 2007. An India-GCC framework agreement on trade is in place and negotiations are on for an FTA.

11. India-Oman Joint Ventures:

• The US$ 969 million, Oman India Fertilizer Company (OMIFCO), India’s largest Joint Venture abroad, started in August 2002 at Sur, Oman, with formal inauguration on January 28, 2006. IFFCO and KRIBHCO are equal partners in the venture with Oman Oil Company, which is the Omani Government’s main investment arm. Under a long-term buy-back agreement, India imports the entire production of 1.6 MTs of granulated urea and 0.255 MTs of ammonia from Sur plant. Plans for expansion are under discussion. • Bharat Oman Refineries Limited (BORL), a company promoted by Bharat Petroleum Corporation Limited (BPCL) and Oman Oil Company Limited (OOCL), has set up a 6 MMTPA grassroot refinery at Bina in Sagar district of Madhya Pradesh along with crude supply system. BORL- a US $ 2.4 billion project was inaugurated in May 2011. • Jindal Steel & Power Ltd.(JSPL) acquired the Oman-based Shadeed Iron & Steel Co LLC for $ 464 million and is at present operating 1.5 MTPA gas based hot briquetted iron plant at Sohar Industrial port area of Oman. Fresh investments are under consideration. • In July 2010, final documents relating to Indo-Oman Joint Investment Fund have been signed in New Delhi. State General Reserve Fund from Oman and State Bank of India from India are the operating parties of the Fund. The Fund is operational with initial seed capital of US$ 100 million and has the provision to go up to US$ 1.5 billion, through a Mumbai headquartered Management Company which has started disbursements to projects. • There is prominent Indian presence in various sectors like oil & gas, mining, manufacturing, IT & telecom, power & water, construction, real estate & consultancy, healthcare, warehousing & logistics, railway sector and steel etc. • Indian companies have strengthened their presence in Oman with securing prestigious contracts. 12. The following are some major contracts and new investments/joint ventures involving India Inc.:

 Punj Lloyds Group won a $72 million contract for building a new water treatment plant for Occidental Mukhazna (January 2011),  Mahindra Satyam signed deal with Omran, a government undertaking, to deliver major projects and manage tourism assets and investments in Oman to implement Oracle ERP towards standardization and automation across its departments. Bahwan IT is the local partner of Omran for this project (March 2011).  Larsen & Toubro (L&T) won a contract valued at around $150 million for the establishment of a gas processing facility for Petroleum Development Oman (PDO) at Lekhwair gas fields (September 2011).  Sohar Industrial Port Company signed an agreement with Indian steel casings manufacturer Dunes Industries. The latter will set up a $ 8 million steel foundry at the free zone Sohar in Oman to cater to the growing West Asian market (September 2011).  Khimji Ramdas Shipping, which has set up a JV in partnership with India-based Ocean Sparkle, under the name of Khimji Sparke LLC, was awarded a long-term contract to provide tugboat services to support the operations of the world-scale ship repair facility of the State-owned Oman Dry-dock Company (ODC) which owns and manages the Duqm ship repair facility (September 2011).  Tata Global Network (TGN) cable in the Gulf connected to the Nawras network, their landing party in Oman. The new cable link will be used to instantaneously route traffic from Nawras customers in Oman to Mumbai in India and onwards to the rest of the world, via TNG (November 2011).

 In January 2012, Bank Muscat announced plans to open new branches in Chennai, India.

 On 14 January, former President Dr. Abdul Kalam inaugurated the 'Centre of Excellence' set up jointly by the Anna University and Bahwan CyberTek of Oman in the university campus in Chennai.

 On February 18, Minister of Commerce, Industry and Textiles, Government of India, inaugurated MHI Engineering and Industrial Projects India Pvt Ltd (MEIP), a joint venture promoted by Mitsubishi Heavy Industries, Ltd of Japan (MHI) and Suhail Bahwan Group of Oman (SBG) set up with initial capital of US$20 million..

 Nova Polyclinic, a pioneer in short-stay surgeries, opened its first polyclinic and a short-stay surgical unit in February in Oman.  On February 5, Global information technology giant Infosys, made a partnership with Oman’s Information Technology Company (IITC), part of OHI group for its popular universal banking solution product Finacle, to further strengthen its presence in the country.

 On February 13, an investment of US$ 45 million was committed to the joint venture of Khimji Ramdas Shipping of Oman and TM International Logistics Ltd., an integrated marine logistics service company of India, in developing the facilities linked to the operation of a new bulk minerals terminal at the Port of Sohar.

 On March 18, India’s Godrej entered in a partnership with Mohsin Haider Darwish (MHD) in Oman’s healthcare facilities and allied services industry.

 On 30 March, Balaji Shipping Lines, part of the Transworld Group of companies from India announced their direct service to Sohar Port from Mundra port (Gujarat).

 On 5 June, Aurobindo Pharma Ltd. of India announced its partnership with Khimji Pharmacy LLC of Oman and launched its entry into Oman/GCC pharmaceutical market.

 On June 9, The Port of Sohar inked a pact with the Metkore Alloys and Industries to set up a 108 MVA Ferro chrome plant spread across 20 hectares of land at Sohar Freezone at a cost of $ 80 million,

 On June 19, CIPLA India strengthened its presence in Oman by a new launch.

13. Omani Companies in India are present in diverse areas like oil & gas, manufacturing, IT & telecom, hospitality, healthcare and financial services etc.

14. Indian financial institutions in Oman are Bank of Baroda since 1975, State Bank of India since 2004, New India Assurance Company and LIC. ICICI Bank, which has a representative office in Oman, has got a license from Central Bank of Oman to start a full-fledged branch in Oman. HDFC Bank also has a representative office in Oman.

15. As per the provision of the MoU on Manpower signed during the Prime Minister’s visit to Oman (November 8, 2008), an India-Oman Joint Working Group meeting on Manpower was held in June 2010 in New Delhi and the second meeting was held in May 2011 in Muscat. Several labour related issues like standardized Model Employment Contract, payment of salary through banks, retention of passport by employers, exchange of information with regard to illegal recruitment and human trafficking, etc. were discussed in these meetings. The third meeting is proposed during September 2012 in Mumbai.

Indian Community in Oman

16. Indian community is the largest expatriate community in the Sultanate of Oman spread over the entire spectrum of professions. As per the Ministry of Manpower statistics, as on 10th January 2012, the number of Indian expatriates in Oman was 7,18,252 and the number of Indian workers in Oman was about 581,832. There are many Indian professionals occupying key positions in Omani government and private sector. Indian nationals in Oman are well known for their hard work and dedication. Thousands of them are working as doctors, engineers, chartered accountants, teachers, lecturers, nurses, managers, etc. It is estimated that some 2,000 Indian doctors work in Oman in Government hospitals and in clinics in the private sector. There are also some 30 Indian academics in the Sultan Qaboos University's various departments and faculties. 19 Indian Schools, with CBSE affiliation, are functioning in Oman. The contribution of Indian workers - both in the skilled class and semi- and un- skilled classes- to the development of Oman is highly acknowledged by the Omani Government. It is estimated that 70% of the Indians in Oman are blue-collared workers.

17. Outstanding contributions of Indians and People of Indian Origin in Oman to the strengthening of our bilateral relations have been recognized by the Government of India through Pravasi Bhartiya Samman Awards. Five prominent Indians: Shri Kanaksi Khimji (2003), Dr. P. Mohammed Ali (2004), Shri P. N. C. Menon (2009), Shri S. K. Virmani (2010) and, Shri Kiran Asher (2012) have been honoured with this award.

18. There are 19 Indian schools offering CBSE syllabus catering to the educational needs of more than 42,000 Indian children. To accommodate the growing number of school going children of Indian expatriates, some of the schools in Muscat have started evening batches. The Schools are distributed in different cities like Muscat (Indian School Muscat, Darsait, Wadi Kabir, Seeb, Al Ghubra, Mabella), Nizwa, Muladha, Sohar, Sur, Salalah, Ibri, Ibra, Jalan, Rustaq, Khasab, Buraimi, Thumrait and Massirah. The Board of Directors is the governing body of Indian Schools in Oman and includes Embassy representative.

Cultural Relations

19. The vibrant Indian Community is keeping its cultural heritage and traditions alive and active in Oman. Visits of popular artists from the field of films and music in the past few years have strengthened the cultural bondage with Omanis, who cherish their cultural links with India. ICCR regularly sponsors visits of artistes to Oman. MOU on Cultural Cooperation signed in July 2010 provides a fresh impetus to the cultural collaboration. 20. Indian Social Club, with its 2 branches and 18-odd wings is the umbrella organization representing the Indian Community in the country. The Club regularly organizes cultural events in various parts of the Sultanate of Oman.

21. The Royal Opera House Muscat (ROHM) is for the first time showcasing four Indian troupes – ‘Nine Jewels of India’, Manganiyar Seduction, Zakir Hussain and Dr. L. Subramaniam – for eight performances during its 2012-13 calendar.

Air Link:

22. A delegation from Omani Ministry of Transport and Communications visited Mumbai from May 29-June 1, 2012 and has identified areas of cooperation in the field of shipping/ports.

23. Currently, Air India (including Air India, Indian Airlines and Air India Express) is operating 34 weekly flights and Jet Airways is operating 21 weekly flights. In October 2011, IndiGo has also started four weekly flights from Muscat to Mumbai. Oman Air operates 77 flights per week to 10 destinations in India.

July 2012