India has committed to spend up to $500 million for the development of Chabahar port in Iran, bypassing Pakistan, as the neighbouring country refused to provide New Delhi access through land route.
The sixth-largest economy will help Iran in running the multipurpose container terminal along with associated roads and rail lines through its own national currency Rupee.
The country will invest its own currency to avert any trouble arising out of impending US sanctions, reports AP.
India and Iran on Saturday signed agreements for avoidance of double taxation and implementing an extradition treaty signed in 2008.
Indian premier Narendra Modi and visiting Iranian President Hassan Rouhani inked the deals.
They have inked another deal envisaged the pooling of technical, scientific and human resources between the two countries.
Rouhani's visit to India comes at a time when President Donald Trump has threatened to scuttle an international deal reached with Iran in 2015 over its nuclear programme that ended economic sanctions imposed on the country.
The uncertainty puts India in a difficult position with its growing ties with the United States.
Rouhani's three-day visit to India ended Saturday.
