The two leaders also discussed connectivity, trade and investment, hydrocarbons and threat of terrorism, official sources said.
Rouhani invited Modi to visit Iran and the prime minister said he looked forward to the trip.
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This is the first highest-level interaction between the two nations after the NDA government came to power last year.
In May, Modi had sent a written message to Rouhani that was handed over to the Iranian president by Road Transport and Highways Minister Nitin Gadkari in Tehran.
Gadkari had signed an agreement with Iran for the development of the Chabahar port.
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