India and Chile have signed a Preferential Trade Agreement (PTA) to help open up trade and investment between the two countries.

The deal was signed by Indian Commerce Secretary SN Menon and Ambassador of Chile to India Jorge Heine, on behalf of Chile.

Chile has slashed import tariffs on 296 Indian products, while India cut tariffs on 266 Chilean goods.

Chile, which has a gross domestic product of US $ 76.3bn, recorded a trade surplus of $8.5bn in 2004. 2004-05 trade between India and Chile was about $447.54m, Enditem said.