The pact is for revising the ASA, which was entered into in January 1974. The updation is being done as per the latest ICAO template with an objective to improve air connectivity between the two countries, an official release said.
It was cleared during the Cabinet meeting chaired by Prime Minister Narendra Modi.
"The existing route schedule annex to the ASA has also been revised and new points of call have been added for enhanced connectivity.
Further, Kochi, Varanasi, Ahmedabad and Amritsar can be served through domestic code share operations.
Among others, the designated airlines of both countries would have the right to establish offices in each other's the territory for promotion and sale of air services.
Routes and frequencies of the designated airlines would be decided subsequently.
Draft text of the ASA has been finalised in consultation with Ministries of Law & Justice, Finance, External Affairs, Tourism and Department of Commerce, it added.
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