Surayud said that since the elimination of tariffs on 82 items included in the early-harvest scheme of a 2004 limited agreement, bilateral trade had jumped to US$3.4 billion (Bt117.4 billion) last year. An agreed target of $4 billion by 2007 can be achieved, he added.

The two countries will develop an "East-West Corridor" land link through Burma, according to government spokesman Yongyuth Mayalarp.

He said the corridor would allow land-based trade to northeast India via Thailand's Mae Sot district and Burma's historic Mandalay.

Surayud was received by Indian President Abdul Kalam and then attended a wreath-laying ceremony at the Mahatma Gandhi memorial in New Delhi.

Surayud is accompanied by Foreign Minister Nitya Pibulsonggram, Minister of Commerce Krirk-krai Jirapaet and Minister of Energy Piyasvasti Amranand.

Surayud is expected to press India to increase the frequency of Bangkok-to-Mumbai and Bangkok-to-New Delhi flights.

"Relations between India and Thailand are based on historic and cultural links, and encompass a range of areas including politics, defence, security, science and technology and cultural exchanges," India's External Affairs Ministry said in a statement on Monday.

Surayud and his Indian counterpart, Manmohan Singh, touched on the two countries' participation in regional cooperation, including the 10-member Asean and the Mekong-Ganga Cooperation project - groupings of which India and Thailand are both members.

Besides visiting Delhi and the northeastern city of Kolkata, Surayud will also visit the Hindu holy city of Varanasi and nearby Sarnath, where Lord Buddha is said to have first given his discourses on enlightenment, officials said.