The two countries previously had a more limited agreement, but the new treaty grants cargo transport "unlimited numbers of these services from and to Chile or India, using any type of aircraft and with full traffic rights to, from, or via any intermediary," the government said in a statement.

  The statement said rights to cabotage -- the transport of cargo between two points within a country by a foreign carrier -- were excluded.

  "We're allowing operators to transport cargo to a gigantic market, whose foreign trade grew 162 percent last year," said Jorge Frei, JAC secretary general, in reference to India.

The government said the agreement would also help to increase air passenger traffic between the two countries.

"It will significantly liberalize air passenger transport, helping airlines to establish operations or sell fares to Chile or India, helping to encourage the arrival of tourists from India," Frei said.

The Chilean government said trade between Chile and India has increased six times in the last five years.

(Reuters)