The Indians are intrigued by the idea of establishing a sea trade link with Iran and Oman through the Iranian port of Chabahar which India is developing in order to access regional markets.
India is reportedly taking an interest in developing the Omani port of Duqm and linking it with Chahabar.
Given the good political relations which exist between Iran and Oman, India hopes to put Duqm’s strategic location to good use and boost sea trade in the region.
Iran Khodro already has plans to set up a plant in Duqm to manufacture cars, with production expected to start by 2017.
India is currently developing Chabahar under a tripartite deal signed with Iran and Afghanistan to boost connectivity with Central Asia and beyond. The country has committed $500 million to the project, including for construction of two terminals and cargo berths.
The Indians have already a presence on Oman’s Sohar port which the sultanate is developing with $25 billion of investment.
In February, Iran launched a shipping route between its Shahid Rajaee port and Sohar to promote trade.
Sohar also features prominently in the future of trade ties with Iran which plans to send its gas to Oman through a pipeline. The offshore section of the pipeline envisages building a pipeline for 200 kilometers from Kuh-e Mubarak in Iran to Sohar.
Oman hopes to turn Sohar and Duqm into a logistics hub connecting it to the Persian Gulf and Central Asia.