The union cabinet on Wednesday approved expanding the Preferential Trade Agreement (PTA) between India and Chile.
"The expanded agreement will benefit India as the export basket is diversified with Chile, which offers a variety of tariffs, " said an official statement issued after a cabinet meeting chaired by Prime Minister Narendra Modi.
Under the expanded agreement, Chile offers concessions on 1, 798 tariff lines with margin of preference (MoP) in 30 - 100 percent range and India offers sops on 1, 031 tariff lines at eight - digit level with MoP in 10 - 100 percent.
"Under the new agreement, 86 percent of India's exports to Chile will get covered with concessions to double our exports in the near future, " the statement noted.
The PTA between the two countries was signed in March 2006 and came into force from August 2007. In fiscal 2006 - 07, Chile was ranked as 51st export destination for India, with $2. 3 - billion bilateral trade.
"Bilateral trade grew 59 percent to $3. 65 billion in 2014 - 15, with Indian exports at $570 million and imports at $3. 08 billion, " the statement said.
As Chile has been cooperating with India at the international fora, expansion of PTA will enhance trade and economic ties between the two countries.
"The expansion will be an important landmark and consolidate the fraternal ties between India and Latin American countries, " the statement added.
- - IANS