Japan and India will sign a bilateral free-trade agreement Wednesday that will eliminate tariffs on 94 percent of two-way trade flows 10 years after it comes into force, the government said Tuesday.

Foreign Minister Seiji Maehara and Indian Commerce and Industry Minister Anand Sharma will sign the pact, which will abolish tariffs on 90 percent of Japanese exports to India such as auto parts and 97 percent of imports from India in terms of trade value over 10 years.