The Sultanate of Oman and the Republic of India have recently signed an updated protocol in Muscat aimed at avoiding double taxation and preventing financial evasion.
The protocol, Oman News Agency (ONA) reported, was executed by Nasser Khamis Al Jashmi, chairman of the Tax Authority, and Amit Narang, ambassador of India to Oman. Al Jashmi emphasized the significance of this protocol as a means to bolster economic relations between Oman and India. He noted that the signing is a product of ongoing efforts to enhance bilateral cooperation in taxation matters.
Oman as strategic partner of India
The Sultanate of Oman serves as a strategic ally for India and is a vital interlocutor within the Gulf Cooperation Council (GCC), Arab League, and Indian Ocean Rim Association (IORA). The two nations share connections through geography, history, and culture, and they maintain warm and cordial relations. While the people-to-people interactions can be traced back 5000 years, formal diplomatic relations were established in 1955, with the partnership being elevated to a Strategic Partnership in 2008.
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Invitation to G20 Summit
In a gesture reflecting this special friendship, India has extended an invitation to the Sultanate of Oman to take part in the G20 Summit and related meetings as a guest nation during India’s Presidency in 2023. Ongoing discussions are also focused on advancing cooperation in strategic sectors such as Space, Rare Earth Minerals, and Cyber Security.
Robust economic and commercial relations
India and Oman enjoy robust and thriving economic and commercial relations. During the fiscal year 2021-2022, bilateral trade reached $ 9.988 billion, and for the year 2022-2023, it increased to $ 12.388 billion. Investment flows between the two countries have been strong, as evidenced by numerous joint ventures established in both India and Oman. Currently, there are over 6000 India-Oman joint ventures in Oman, with an estimated investment exceeding $ 7.5 billion.
Oman-India Joint Investment Fund (OIJIF)
The Oman-India Joint Investment Fund (OIJIF) is a 50-50 Joint Venture established between the State Bank of India and the former State General Reserve Fund (SGRF) of Oman. Launched in July 2010 as a special purpose vehicle (SPV) for investing in India, OIJIF began its operations in 2011 with an initial capital of $ 100 million, which has been fully invested across seven Indian companies spanning various sectors. Following the successful deployment of funds in Tranches I and II, OIA and SBI are currently negotiating for the third Tranche of OIJIF, with investments anticipated to commence in 2023. The estimated capital for the third Tranche is $ 300 million.
India as key trading partner
India ranks among Oman’s top trading partners. For 2022, India was the second largest market for Oman’s crude oil exports, following China. Additionally, India was the second largest market for Oman’s non-oil exports after Saudi Arabia and the third largest source of imports after the UAE and Saudi Arabia. India’s exports to Oman in the fiscal year 2022-2023 totaled $ 4.477 billion, making Oman India’s 31st largest export market for that period. Conversely, India’s imports from Oman in the same fiscal year amounted to $ 7.911 billion, positioning Oman as India’s 24th largest source of imports for the fiscal year 2022-2023.
