"For me, visiting Iran is indeed a great privilege. India and Iran are not new friends. Our 'dosti' is as old as history," he said while delivering the joint statement here with Iranian President Dr. Hassan Rouhani.
Prime Minister Modi recalled that Iran was first country to come forward when earthquake had struck Gujarat when he was the chief minister.
The Prime Minister, who is presently on a two-day visit to Iran, said that he exchanged views on emerging regional challenges and global issues of common interest with President Rouhani.
"As friends and neighbours, we have shared interest in each other's growth and prosperity, joys and sorrows. India is proud to have stood with the people of Iran during your difficult times," he added.
Prime Minister Modi said the bilateral agreement to develop Chabahar port is an important milestone.
"The agreement to develop the Chahbahar port and related infrastructure and availability of about $ 500 million from India is a key milestone. Outcomes and agreements signed today open a new chapter in our strategic partnership," he added.
The Prime Minister further said both nations have shared concerns at the spread of forces of instability, radicalism and terror in our region.
"Later today, we will sign a trilateral transport and transit agreement in partnership with India, Iran and Afghanistan," he added.
India and Iran today signed 12 Memorandum of Understanding and agreements in various areas including building and operating the Chabahar port by India.
It followed the delegation level talks between Prime Minister Modi and the Iranian President. The other agreements include cooperation in culture, science and technology, library sciences, and cooperation between the exim banks of both countries.
Prime Minister Modi was earlier accorded ceremonial welcome on the forecourts of the Saadabad Palace in Tehran