India and Oman are likely to sign a free trade agreement (FTA) next month, according to a senior Indian government official.

The negotiations for the proposed FTA are moving fast, CNBC TV 18, an Indian business and financial news channel, reported.

The countries concluded the second round of talks on the comprehensive economic partnership agreement (CEPA) in Muscat earlier this month and have concluded negotiations on the text of most chapters of the FTA.

Motor gasoline, iron and steel products, electronics, machinery, textiles, plastics, essential oils and motor cars are among the sectors that could benefit from the pact.

Oman is India’s third-largest export destination among the Gulf Cooperation Council (GCC) countries. Bilateral trade reached nearly $12.39 billion in 2022-23.

India has already signed a CEPA with the UAE, which came into force in May 2022.

(Editing by Seban Scaria seban.scaria@lseg.com )