India and the ten countries in the Southeast Asian cooperation Asean signed a free trade agreement on Thursday, after more than six years of negotiations.
The agreement does not include software and information technology.
Thai and Indian officials said that the agreement includes removing tariffs on products such as electronics, chemicals, machinery and textiles. These goods account for more than 80 percent of the total trade between Thailand and India.
The agreement will take effect on January 1st, 2010 and charges will be reduced gradually to zero between 2013 and 2016.
The trade agreement was signed in connection with the ASEAN Finance Ministers meeting in Bangkok.
The ASEAN includes Thailand even Vietnam, Indonesia, Malaysia, Philippines, Singapore, Brunei, Cambodia, Laos and Burma.
Cecilia Helland