India and Thailand Thursday signed a free-trade agreement and other pacts on tourism, agriculture and science during a landmark visit by Indian Prime Minister Atal Bihari Vajpayee.

The trade deal aims to trim most tariffs on trade between the two countries to nearly zero by 2010.

Vajpayee, who was accompanied by a high-powered delegation of officials and business people, is the first Indian prime minister to visit Thailand in 10 years.

He arrived on Wednesday from Bali, Indonesia, where he attended the Association of Southeast Asian Nations' (ASEAN) summit as an observer - a status accorded last year in recognition of India's growing links with the region.

"We see this visit as a substantive step in implementation of India's 'look east' policy," said Indian Ambassador Leela K. Ponappa, referring to the importance India has been placing on Southeast Asia.

Vajpayee and Thai Prime Minister Thaksin Shinawatra held formal talks on a number of issues, including their concerns over terrorism, but details of the discussions were not immediately disclosed.

Later, the two countries' commerce ministers signed the free-trade deal. As a first step, both sides have targeted 83 items on which duties will be gradually reduced to zero in two years.

The items include agricultural products, chemicals, industrial components and manufactured goods. The tariff reductions will start in March, Ponappa said.

Three other agreements on agricultural co-operation, tourism, and co-operation in biotechnology were to be signed by other ministers.

(Xinhua News Agency October 10, 2003)