Malaysia has said its business community will enjoy better market access to India as more than 80 percent of its products entering the country will be duty free by 2016 with the historic free trade agreement (FTA) between India and the ASEAN.

India and the ten-member-group signed the landmark agreement yesterday in Bangkok.

Malaysia International Trade and Industry Minister Mustapa Mohamed said 71 percent Malaysian goods would enjoy duty-free access to India by 2013 and another 9 per cent by 2016, while tariffs for the remaining 10 per cent would come down to 5 per cent. "The FTA between ASEAN and India will benefit Malaysia and the rest of the region. It took more than six years to complete the negotiations, much longer than any other FTAs signed by ASEAN," he said in Bangkok, national news agency Bernama said.

The agreement will come into effect on Jan 1, 2010. Mustapa said as the agreement on trade covered products, both sides would start talks on services and investments that they hope to complete by the end of 2010.