Nuclear-armed rivals India and Pakistan agreed on Wednesday to more than double trade within three years and open a second border trading post as they seek to buttress their peace process.

The commitment by Indian Commerce Minister Anand Sharma and his Pakistan counterpart, Makhdoom Amin Fahim, is part of a bid to put back on track peace efforts derailed by deadly Pakistan militant attacks on Mumbai in 2008.

These decisions will add "width and depth to our economic engagement that will help us in defining our future roadmap" as neighbours, Sharma told a joint news conference in New Delhi.

Deepening economic engagement between the two countries, which have fought three wars against each other since independence from Britain in 1947, is seen as crucial to establishing lasting peace in the troubled South Asian region.

The visit by Fahin, who was accompanied by a more than 50-member high-level business delegation, was the first by a Pakistani commerce minister to India in 35 years.

The two countries agreed to more than double trade to $6 billion within three years from the current level of $2.7 billion.

"The target may be reached earlier depending on what we accomplish," said Sharma.

The two ministers said in a joint statement that they had "mandated their commerce secretaries to pursue with vigour the task of fully normalising bilateral trade relations".

The ministers also agreed to open a second trade post at the Wagah border, the only road crossing between India and Pakistan, in a push to boost the volume of trade.

"I hope we can move further in our cooperation," Fahim told the news conference.

India is eyeing improved trade ties with Pakistan as a way to gain better access to the republics of Central Asia while Pakistan is keen to tap India's vast market of 1.2 billion people.

channelnewsasia.com