Afghanistan's president and India's prime minister have signed agreements boosting cooperation in a number of areas, including small development projects, mines and youth affairs.
Hamid Karzai met with Manmohan Singh Monday in New Delhi to appeal for increased investment in war-torn Afghanistan.
President Karzai said Monday after the two leaders met that investment opportunities are better today in Afghanistan because the country is more confident about its future.
India has already invested more than $2 billion in Afghanistan's infrastructure. The two countries are careful that their cooperation efforts are not viewed as a threat by Pakistan, which lies sandwiched between India and Afghanistan.
Before holding talks in New Delhi with Singh Monday, President Karzai met with other high-level Indian officials and visited Mahatma Gandhi's memorial.
Some information for this report was provided by AP, AFP and Reuters.