On Thursday, Ethiopia agreed in principle to grant visa on arrival for Indians as the two countries embarked on a path to forge closer ties and to cooperate with each other, both at the bilateral level and at the international fora.

The decision to extend visa on arrival facility to Indians was taken during discussions between visiting External Affairs Minister Pranab Mukherjee and his Ethiopian counterpart Seyoum Mesfin in the picturesque capital city of Addis Ababa.

"Indians will be issued visas on their arrival," Mukherjee said at a joint press conference with Mesfin after talks with him at the foreign office in the Ethiopian capital.

The issue of re-negotiation of the existing agreement between Ethiopian Airlines with Air India to rework the royalty paid by the Ethiopian carrier was also discussed in the meeting.

Both the sides decided to increase cooperation with each other at the international fora and to share a common approach on critical global issues including UN reforms and pledged to promote and protect bilateral investments.

They signed five agreements of cooperation, including in the key fields of science and technology and education and decided to establish a Joint Ministerial Commission and a protocol on foreign office consultations.

"India is a close friend of Ethiopia. Our relations go back to history," Mesfin said noting that New Delhi has been playing a critical role in Africa, in the countries of the south and particularly in Ethiopia.