India's federal cabinet approved on Wednesday a proposed Indo-US air services pact that would allow direct commercial flights between any Indian and US city.

"As a result of this, there will be uninterrupted services between any two cities of the United States and India," India's Civil Aviation Minister Praful Patel told reporters after the cabinet meeting, chaired by Prime Minister Manmohan Singh.

The proposed agreement would be signed by authorities from both nations on Thursday and replace the existing agreement which dates from 1956.

A government statement said the existing Air Transport Agreement (ATA) between the two countries restricted airlines of both nations to just four points of call in each nation.

"This restriction on points of call has been removed in the revised ATA," the statement said.

Earlier on Wednesday, India and Britain agreed to more than double the number of weekly flights between the two countries from 40 now, opening up dozens of lucrative new routes for airlines.

Last week, Continental Airlines announced it would launch daily non-stop fights between New York and New Delhi beginning October 31, subject to government approvals.

In February, Northwest Airlines asked the US Department of Transportation for broad authority to serve India, which is witnessing a sharp growth in international passenger traffic on the back of a robust economy.