Negotiations for the proposed Free Trade Agreement (FTA) between India and Oman are progressing rapidly, and the agreement is expected to be signed in January 2024, according to a senior Indian government official as reported by Indian media.

Earlier this month, the second round of talks for the FTA, officially known as the Comprehensive Economic Partnership Agreement (CEPA), took place in Muscat between India and Oman.

"There is very good progress with Oman, and both sides are very eager to conclude this deal. It may be signed in January 2024," stated the official, as reported by the leading Indian news agency PTI.

Negotiations on the text of most CEPA chapters have reportedly been concluded by both parties, and Indian Foreign Secretary Vinay Kwatra highlighted the strong commitment of Indian Prime Minister Narendra Modi and His Majesty Sultan Haitham bin Tarik to expedite the agreement.

The formal commencement meeting for India-Oman CEPA occurred on November 20, 2023, followed by the first round of negotiations in New Delhi from November 27 to November 29. Subsequent negotiations continued with the second round in Muscat from December 9 to December 11.

Oman ranks as India's third-largest export destination among GCC countries, and the anticipated free trade agreement is poised to enhance bilateral trade. According to a report by the Global Trade Research Initiative, Indian goods valued at $3.7 billion, including gasoline, iron and steel, electronics, and machinery, are expected to experience significant growth in Oman once a comprehensive free trade agreement is reached.

Indian-Omani bilateral trade amounted to $12.39 billion in the Indian fiscal year 2022-23, with India's exports to Oman increasing from $2.25 billion in fiscal year 2018-19 to $4.48 billion in 2022-23. Oman's exports to India reached approximately $8 billion in the last fiscal year ending March 31, 2023.