Prime Minister Narendra Modi was today accorded a ceremonial welcome as he met Iranian President Hassan Rouhani for talks to deepen trade, investment and energy ties.

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.