Participating in the 12th Joint Commission Meeting, Iranian Foreign Minister Kamal Kharrazi condemned the May 14 attack near Jammu and "understood" the problem of cross-border terrorism being faced by India.
External Affairs Minister Jaswant Singh sensitised Kharrazi about Indo-Pak tensions and discussed the latest developments in Afghanistan, including reconstruction of the war-ravaged country.
The two sides agreed to expedite work on the North-South trade corridor linking India with Russia through Iran to give a boost to trade with Europe, an external affairs ministry spokesperson said.
They identified energy, information technology, small-scale industry, petrochemicals, textiles, railways and certain other sectors for cooperation.
India and Iran would sign certain Memoranda of Understanding on Tuesday at the conclusion of the two-day JCW.
Both sides also discussed the proposed pipeline from Iran to India for supply of natural gas. The issue whether the pipeline should come via Pakistan or should be under water is currently under consideration.
Kharrazi, who is leading a large delegation, arrived in New Delhi on Sunday night on a two-day visit.
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