"We will support the construction of the Chabahar-Zahedan rail link so that Chabahar gateway's potential could be fully utilized," Modi was quoted as saying.

"We want to expand connectivity, cooperation in the energy sector and the centuries-old bilateral relationship," he said.

Chabahar "can change the trade relations game across the region and the world," he said, noting that India had already begun exporting its goods, including wheat, to Afghanistan via the Iranian port city.

Also, Iran's Minister of Road and Urban Development Abbas Akhoundi said on the sidelines of signing session that New Delhi would initially invest as much as 87 million U.S. dollars in the developing of the Chabahar project.

This would be part of a total investment of two billion U.S. dollars that India would make in Iran's port and rail projects, he added.

On Saturday, the two sides also signed double taxation avoidance agreement, and an MoU on exemption of visa requirements for diplomatic passport.

Tehran and New Delhi also agreed to cooperate in the field of traditional systems of medicine, to cooperate in agriculture, health and medicine, as well as postal sectors.

Later on the day, Rouhani tweeted that Iran and India have "very good cooperation" in the two sectors of "transit and energy," which will be expanded in near future.

Iran can provide India with its energy needs by entering into long-term strategic agreements, he added.

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