New Delhi, Sep 17 - The government Thursday gave its approval to the proposed amendments in the India-Saudi Arabia air service agreement.

Both sides had held talks earlier and agreed Jan 23, 2008 to modernise the air service agreement signed in 1973 to boost bilateral trade and promote tourism.

'Now each side can designate one or more of their carriers to operate agreed services between the two countries. In the ASA, articles on co-operative marketing arrangements and aviation safety have been introduced,' Information and Broadcasting Minister Ambika Soni told reporters after a cabinet meeting.

'The modernised ASA has the potential to spur greater trade investment, tourism and cultural exchanges between the two countries,'the minister said.