During the meeting, Swaraj expressed India's strong commitment to continue extending its all possible help to Afghanistan to meet various challenges and conveyed that it will remain engaged in the country's reconstruction activities in a significant way.
Both the sides underlined the need for expanding trade ties.
Swaraj, who is on her first visit here as External Affairs Minister, drove straight from the airport to presidential palace where she held talks with Karzai on various key issues.
Swaraj said India will speed up various development projects in Afghanistan.
Also Read
As NATO forces prepare to withdraw from the country, Afghanistan wants India to help it in meeting security challenges.
Afghanistan has been pressing India for supply of military hardware and weapons system to it.
Sources said Afghan side conveyed to India its security needs.
Seeking to enhance strategic cooperation and help Afghanistan deal with key challenges of security and stability, Swaraj arrived here earlier in the day.
Swaraj's visit also assumes significance as it comes amid rising fears of the reemergence of the Taliban and other al-Qaeda linked elements in the country following withdrawal of NATO forces by end of the year.
Former Foreign Minister Abdullah Abdullah and former Finance Minister Ashraf Ghani were in a tight race in the polls and the winner will succeed incumbent President Hamid Karzai who has been in power for nearly 13 years.
Afghanistan has been pressing India for supplying military hardware to strengthen its security set up in view of drawdown of NATO forces. Karzai has already given a "wish-list" to India.