Modi, the first Prime Minister to visit Iran on a bilateral visit in 15 years, was received by Iranian President Hassan Rouhani on the forecourts of Saadabad Palace - the seat of executive in Iran.
Military bands played national anthems of the two countries after which Modi inspected guard of honour.
Following this, the two leaders had a 30-minute restricted meeting to discuss bilateral issues of strategic and business importance.
Delegation-level talks followed it, leading to signing of agreements on development of Chahabar port on southern coast of Iran, setting up of an aluminium smelter plant and rail line.
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