Deepening Trade, Economic Pacts: PM Modi's Three-Nation Visit To Jordan, Ethiopia, Oman

Prime Minister Modi's forthcoming three nation tour to Jordan, Ethiopia and Oman from Dec. 15 to Dec. 18 will be significant for deepening strategic and economic cooperation, reinforcing long-standing partnerships, and expanding India's diplomatic footprint in the Middle East and Africa.

These visits are part of his "Link West" Policy", which focuses on deepening engagement with West Asia and the "Africa initiative", which is a comprehensive, multi-faceted foreign policy approach that centres on enhancing India-Africa relations.

The visit to Jordan on Dec. 15-16 at the invitation of King Abdullah II bin Al Hussein will coincide with the 75th anniversary of the establishment of diplomatic relations between the two countries, providing an opportunity to boost ties and explore new areas of collaboration in sectors, such as renewable energy and information technology.

Jordan is a stable and moderate voice in a volatile Middle East region, making it a crucial partner for India's engagement in West Asia. Both nations share concerns about terrorism and cooperate on counter-terrorism efforts, with high-level discussions and agreements on defence and security cooperation.

 Jordan is also very important for India due to strong economic and commercial ties as well as significant cooperation in the fertiliser and textile sectors. India is Jordan's fourth-largest trading partner, with bilateral trade valued at approximately $3 billion in 2023-24.

Fertiliser and phosphate trade is a cornerstone of the economic relationship. India imports large quantities of phosphates, phosphoric acid, and potash from Jordan for its fertiliser industry. A major joint venture project, the Jordan-India Fertilizer Company between IFFCO and the Jordan Phosphate Mines Company is a key investment worth over $860 million.

Indian companies have invested considerably in Jordan's textile sector. Many Indian-owned garment manufacturing units operate in Jordan's Qualified Industrial Zones, leveraging Jordan's free trade agreements with the US and other countries for exports. India exports a wide range of goods to Jordan, including electrical machinery, cereals, frozen meat, organic and inorganic chemicals, and automotive parts. 

People-to-people and cultural ties with Jordan are also very important. There are around 17,500 Indian nationals living and working in Jordan, primarily in the textile, construction, and manufacturing sectors, contributing to both economies. The two countries have active educational and cultural exchange programs.

Jordan offers "visa on arrival" or e-Visas for Indian tourists, and direct flights have been established, boosting tourism and people-to-people contacts. India provides ITEC (Indian Technical and Economic Cooperation) slots and scholarships to Jordanian nationals to help with capacity building and professional development.

After Jordan, Modi will visit Ethiopia on Dec 16-17, 2025, at the invitation of Prime Minister Dr Abiy Ahmed Ali. Ethiopia is important for India due to their long-standing historical relations, significant economic partnership (including trade, investment, and development assistance), and strategic cooperation in areas like education, capacity building, and regional diplomacy. Ethiopia hosts the headquarters of the African Union, making it a crucial diplomatic hub for India's engagement with the entire African continent. In essence, Ethiopia serves as a vital anchor for India's broader Africa outreach strategy, encompassing economic growth, capacity building, and geopolitical alignment. 

India is one of the top three foreign investors in Ethiopia, with over 600 companies involved in manufacturing, agriculture, floriculture, engineering, and pharmaceuticals. Bilateral trade has shown consistent growth, approaching $3 billion, making India one of Ethiopia's largest trading partners. India exports pharmaceuticals, steel, machinery, and textiles, while importing pulses, oilseeds, spices, and leather. Ethiopia has been the largest recipient of Indian concessional Lines of Credit in Africa, with over $1 billion committed to major projects in power transmission and the sugar industry.

Education has been a core element of the relationship. Thousands of Indian teachers and professors have worked in Ethiopian schools and universities for decades, contributing significantly to human capital development. India has provided numerous scholarships and technical training slots under the ITEC program and the Pan-African e-Network project to Ethiopian students and professionals.

In the final leg of the tour, Modi will visit the Sultanate of Oman at the invitation of His Majesty Sultan Haitham bin Tarik. This will be his second visit to Oman and will mark 70 years of diplomatic relations between the two nations. The Union Cabinet on Friday approved the proposed Free Trade Agreement between India and Oman, clearing the way for the Comprehensive Economic Partnership Agreement as Prime Minister Narendra Modi prepares for his visit to Oman. The two sides are expected to sign the Comprehensive Economic Partnership Agreement and review cooperation in areas like trade, investment, energy, defence, and technology.

Oman is important for India due to its strategic location, serving as a crucial pillar of India's West Asia policy and an essential partner for energy security, defence cooperation, and economic ties. Oman is strategically located at the mouth of the Persian Gulf and controls the southeastern entrance to the Strait of Hormuz, a critical chokepoint for a significant portion of the world's oil shipments. This position is vital for India's maritime security and energy trade interests.

Economic and commercial ties between India and Oman are also very important. India is one of Oman's top trading partners. Bilateral trade reached approximately $10.61 billion in the financial year 2024-2025. Oman is a significant and reliable source for India's energy requirements, including crude oil and liquefied natural gas imports. There are over 6,000 Indo-Oman joint ventures in Oman with an estimated total investment of over $7.5 billion. 

The Oman-India Joint Investment Fund facilitates strategic investments in India. Oman's ports (Duqm, Sohar, Salalah) are important logistics hubs. India has an interest in developing these ports, and an undersea gas pipeline project from Oman to India has been under consideration as an alternative energy route. The two countries have signed an MoU to link their payment systems (India's UPI is proposed to link with Oman's mobile wallet app, Thawani), facilitating digital transactions.

The large Indian expatriate community in Oman (around 700,000 people) serves as a "living bridge" between the two nations, contributing significantly to the Omani economy and society. The Omani government has long acknowledged their role. The deep socio-cultural bonds are rooted in millennia-old maritime trade routes and historical people-to-people exchanges. 

Summing up, Modi's forthcoming visits to Jordan, Ethiopia and Oman are important for a variety of strategic, economic, and diplomatic reasons and are aimed at advancing India's national interests and enhancing its global standing. Summit-level visits serve as a crucial mechanism to foster closer ties, mutual understanding, and solidarity with partner nations.

These interactions allow leaders to build personal rapport, which can facilitate smoother diplomatic and economic cooperation, even amidst geopolitical tensions. Ultimately, these foreign visits are considered an essential component of an active and pragmatic foreign policy designed to position India as a key player and a reliable partner in an increasingly multipolar world.

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