India, Iran ink 9 pacts after 'substantive talks'

Prime Minister Narendra Modi and Iranian President Hassan Rouhani held "substantive talks" on Saturday where the two leaders discussed ways and means to promote connectivity, enhance trade and investment in the field of energy, sought to evolve a common stand on countering terrorism, and among other issues, the situation in Afghanistan.

After the talks, both sides inked nine pacts, including a lease contract for a part of Chabahar port's operation for 18 months. In addition, four non-official agreements were also signed between trade bodies. Other pacts included avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, ratification of extradition treaty, exemption from visa requirement for holders of diplomatic passports, traditional systems of medicine and establishment of an expert group on trade remedy measures.

At a joint press conference, the Iranian President stated that both countries had a "common stance" on dealing with terrorism and extremism.

Without naming Kashmir, the Iranian leader said that regional conflicts must be resolved through diplomacy and political initiatives —an oblique reference to India-Pakistan issues. Later, a senior official in the Ministry of External Affairs (MEA) indicated that the issue figured in the deliberations. He added that there was an understanding by Iran on how India was a victim of terrorism and that the people of Jammu and Kashmir were suffering due to cross-border terrorism.

Referring to the situation in Afghanistan, the Iranian President said that both countries were of the opinion that all stakeholders should work for the peace and stability of the country. "We believe that the various issues of the region, especially in Syria, Iraq and Yemen, should be resolved through political initiatives," he said. On the issue of Iran's nuclear weapons, he said both the countries have a common viewpoint that the commitment to the international agreement must be honoured.

Focussing on the economic aspects of the talks, Modi stated that the pact on the Chabahar port was a "golden gateway" to central Asia. Located just 90 kilometers from the China-sponsored Gwadar port in Pakistan, the Chabahar port is significant as it gives a transit route between India, Iran and Afghanistan bypassing Pakistan. Development of this port the Prime Minister said, would help India to reach out to land-locked Afghanistan and central Asia.

The Prime Minister also expressed his commitment to build $1.6 billion rail project to link the Chabahar port to Iran's eastern city of Zahedan on the border with Afghanistan.

President Rouhani's visit is significant as it comes within a month of India hosting Israeli Prime Minister Benjamin Netanyahu.