Chile and India have signed an agreement to establish an open skies policy for air cargo to liberalise air transport services, according to Chile's Civil Aeronautic Council (JAC).

The new accord grants cargo transport "unlimited numbers of these services from and to Chile or India, using any type of aircraft and with full traffic rights to, from, or via any intermediary," according to a government statement.

But cabotage, transport between domestic destinations, are excluded from the deal, Reuters reports.

"We're allowing operators to transport cargo to a gigantic market, whose foreign trade grew 162 per cent last year," said Jorge Frei, JAC secretary general, in reference to India.

The Chilean government said trade between Chile and India has increased six times in the last five years, the report added.