India and Turkey have signed a series of protocols aimed at increasing bilateral trade, as well as an agreement on the extradition of criminals.
They also announced the resumption of direct flights from Thursday.
The agreements were signed on Wednesday on the second day of a visit to Ankara by the Indian Prime Minister, Atal Behari Vajpayee.
The Turkish Prime Minister, Recep Tayyip Erdogan, said the aim was to increase bilateral trade to one billion dollars by 2005.
Mr Vajpayee, for his part, said the agreements would enhance cooperation in key areas, such as information technology, agriculture, energy and electronics.
From the newsroom of the BBC World Service