New Delhi : The cabinet Thursday approved a new air services agreement between India and Maldives that permits any number of airlines to operate between the two countries, replacing a 19-year-old pact that allowed only one carrier from either country.

"The revised agreement will increase the potential to spur greater trade, investment, tourism and cultural exchange between the two countries," Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the cabinet meeting.

Maldives is a popular destination for Indians, for both tourists and film makers. India too attracts a large number of tourists from the countries in the region including Maldives.

Either country can impose reasonable user charges on the airlines of the other country and is free to decide tariffs based on commercial considerations.

The designated airline of either party may enter into cooperative marketing arrangements as the operating or marketing airline with any airline. (IANS)