Prime MInister Narendra Modi met Iran's Foreign Minister Jawad Zarif on Friday.
Mr. Zarif's visit assumes significance as it was the first trip by a key minister of Iran after it reached the historic pact on its contentious nuclear programme with the West in July.
The deal has led to a phased lifting of sanctions, which have hampered the Iranian economy. It also comes in the backdrop of Iran inviting Indian investments of about eight billion dollars in infrastructure projects there.
Zarif is expected to meet Union Road Transport and Shipping Minister Nitin Gadkari, who visited Tehran in May when the countries signed an agreement to develop the Chabahar Port, which is located on Iran's southeastern coast.