India and Iran on Monday, the second day of Prime Minister Narendra Modi's visit to the Gulf nation, held delegation-level bilateral talks.
"Deliberating the details of diplomacy. The leaders lead formal delegation level talks between #IndiaIran," external affairs ministry spokesperson Vikas Swarup tweeted.
Ahead of the talks, Modi and Iranian President Hassan Rouhani held a "restricted" meeting.
The prime minister, who arrived here on Sunday evening, was accorded a ceremonial welcome on Monday morning.
India, Iran and Afghanistan will sign an agreement on Monday to develop the Chabahar port in the Persian Gulf nation.
Connectivity, energy security and bilateral trade are on top of Modi's agenda during his visit which comes a little over a month-and-a-half after his trip to Saudi Arabia.
The prime minister will also inaugurate an Indian cultural festival in Iran.
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Modi will also hold talks with the country's Supreme Leader, Ayatollah Sayyid Ali Hosseini Khamenei.
The prime minister's visit comes four months after the sanctions on Iran were lifted and the international community is re-engaging with the nation.