"Recognising the significant mutual benefit that can be derived from cooperation in shipping between the two countries, it has been decided to sign the agreement with a view to strengthening cooperation and render sustained mutual assistance and advice on merchant shipping and other related maritime matters," the Shipping Ministry said in a statement.
The approval was given by the Union Cabinet today chaired by Prime Minister Narendra Modi.
The agreement will be signed on a mutually convenient date and venue, the statement said.
The agreement, once signed, will help both countries facilitate development of their maritime relationship and cooperate for a steady growth of maritime traffic, exchange and training of staff and students, it said.