President of the Islamic Republic of Iran Hassan Rouhani at the Ceremonial Reception at Rashtrapati Bhavan | Beyond Borders


New Delhi |Mar 03, 2026 | BeyondborBersbyJwala

In a major diplomatic milestone aimed at reshaping regional geopolitics and trade, Iranian President Dr. Hassan Rouhani concluded his first State Visit to India from February 15-17, 2018. Hosted by Prime Minister Narendra Modi and President Ram Nath Kovind, the visit operated under the strategic theme, “Towards prosperity through greater connectivity.” Building on the foundation of the 2003 ‘New Delhi Declaration’ and PM Modi’s transformative visit to Tehran in May 2016, the two civilizational partners signed nine pivotal agreements and four trade MoUs. The talks spanned high-level strategic connectivity, energy security, counter-terrorism, and deep-rooted cultural exchanges.

Before arriving in New Delhi for a ceremonial welcome at Rashtrapati Bhavan, delegation-level talks, and an official banquet hosted by President Kovind, President Rouhani visited Hyderabad on February 15-16, underscoring the deep historical and cultural ties between the two nations.

Chabahar and the Connectivity Paradigm

The centerpiece of the bilateral engagement was the operationalization of the Chabahar Port, an asset critical to India’s strategic access to Afghanistan and Central Asia, bypassing Pakistan.

The two leaders welcomed the signing of an 18-month interim Lease Contract for the Shahid Beheshti Port (Phase 1 of Chabahar) between Iran's Port and Maritime Organization (PMO) and India Ports Global Limited (IPGL). This follows the successful December 2017 inauguration of Phase-1 and the successful shipment of Indian wheat to Afghanistan via this route.

To fully utilize this gateway, India committed its support for the Chabahar-Zahedan Rail line. India’s IRCON and Iran’s CDTIC have been tasked with finalizing technical parameters and financing in a time-bound manner, with India encouraging cooperation in supplying steel rails, turnouts, and locomotives. Furthermore, Iran invited Indian public and private sector investments in the Chabahar Free Trade Zone (FTZ) in sectors like fertilizers, petrochemicals, and metallurgy.

Further integrating the region, both nations reaffirmed their commitment to the International North-South Transport Corridor (INSTC), with Iran scheduling an early coordination meeting. India’s recent accession to the TIR Convention and the Ashgabat Agreement was lauded as a major step toward regional economic linkage. To commemorate this connectivity, the leaders released a joint postage stamp depicting India's Deendayal Port (Kandla) and Iran's Shahid Beheshti Terminal.

Elevating the Energy and Economic Partnership

Moving beyond a traditional buyer-seller dynamic, India and Iran agreed to forge a long-term strategic energy partnership. Crucially, the leaders directed officials to increase the pace of negotiations to reach a final agreement on the Indian development of the Farzad-B gas field.

Recognizing that robust trade requires seamless financial channels, the two sides are actively exploring a Rupee-Rial Arrangement and the Asian Clearing Union mechanism. Notably, India is in the advanced stages of considering permission for Iran’s Pasargadbank to open a branch in India.

The two sides committed to fixed-timeframe negotiations for a Preferential Trade Agreement (PTA) and a Bilateral Investment Treaty (BIT). India also reaffirmed its full support for Iran’s accession to the World Trade Organization (WTO).

Defense, Security, and Regional Stability

In a strong message against global terror, PM Modi and President Rouhani unequivocally condemned terrorism in all its forms, emphasizing that it cannot be linked to any religion or ethnicity. They called for an end to terrorist safe havens and state support for terror groups, urging the UN General Assembly to conclude the Comprehensive Convention on International Terrorism (CCIT). India also endorsed Iran’s 2013 UNGA resolution, "World Against Violence and Extremism" (WAVE).

National Security Councils of both nations will now hold institutionalized consultations on terrorism, organized crime, money-laundering, drug trafficking, and cybercrime. In the maritime domain, the nations agreed to enhance defense cooperation, including naval port calls and training exchanges.

On regional geopolitics, both sides stressed the need for a strong, united, and democratic Afghanistan, supporting its National Unity Government and the India-Iran-Afghanistan trilateral coordination. Furthermore, India reiterated its steadfast support for the full implementation of the Joint Comprehensive Plan of Action (JCPOA), calling it a crucial contribution to global non-proliferation and peace. Both leaders also backed comprehensive UN Security Council reforms through Intergovernmental Negotiations (IGN) and greater developing-nation representation in global financial institutions.

People-to-People Ties and Consular Cooperation

To boost tourism and business, both nations agreed to implement reciprocal e-visa facilities. Iran will also positively consider India's request to upgrade its Consulates in Iran.

Culturally, the nations will host a Festival of India in Iran (2018/19), establish a Chair of Indian studies at Tehran University, organize Indology courses for Iranian diplomats at India's Foreign Service Institute, and expand Persian language courses in India.

Comprehensive Breakdown of Signed Agreements

To solidify the partnership, nine official MoUs/Agreements were exchanged, covering a vast spectrum of governance and trade:

  1. Avoidance of Double Taxation (DTAA): Signed to prevent fiscal evasion and promote the flow of investments and services.
  2. Diplomatic Visa Exemption: Waiver of visa requirements for diplomatic passport holders.
  3. Extradition Treaty Ratification: Exchange of instruments bringing the 2008 Extradition Treaty into active effect.
  4. Shahid Beheshti Port Lease: The 18-month interim lease for the multipurpose/container terminal operations by India's IPGL.
  5. Traditional Systems of Medicine: Comprehensive cooperation encompassing practice regulations, expert exchanges, scholarships, and mutual recognition of pharmacopoeias and preparations.
  6. Trade Remedy Measures: Establishment of an Expert Group to cooperate on anti-dumping and countervailing duties.
  7. Agriculture and Allied Sectors: Broad cooperation spanning crop extension, horticulture, plant quarantine, seed technology, and dairy development.
  8. Health and Medicine: Inter-institutional collaboration covering medical training, facility setup, pharmaceutical/cosmetic regulation, and public health (SDGs).
  9. Postal Cooperation: Sharing expertise in e-commerce/logistics, philately, and feasibility studies on air and surface transit capacities.

Additionally, noting the critical role of private industry, the leaders welcomed the recent opening of the CII regional office in Tehran and the impending opening of an Iran Chamber of Commerce office in India. On the sidelines of the visit, four major B2B MoUs were signed:

  • EEPC India and the Trade Promotion Organization (TPO) of Iran.
  • FICCI and the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA).
  • ASSOCHAM and ICCIMA.
  • PHDCCI and ICCIMA.

The historic visit concluded with President Rouhani extending an invitation to President Kovind and PM Modi to visit the Islamic Republic of Iran, which was warmly accepted, setting the stage for continued momentum in this vital geopolitical partnership.