History created: PM Modi says after India, Iran, Afghan sign trade corridor pact

"Today, we are all witnessing creation of history. Not just for the people of our three countries, but for the entire region. To build bonds of connectivity is the most basic of human urges," Modi said.

The Indian Prime Minister said Iran, Afghanistan and India are deeply aware of the richness and reality of ancient links.

"The Agreement on the establishment of a Trilateral Transport and Transit Corridor signed just a while ago can alter the course of history of this region," said he.

Modi said the agreement is a new foundation of convergence between the three nations.

"The corridor would spur unhindered flow of commerce throughout the region. Inflow of capital and technology could lead to new industrial infrastructure in Chahbahar," said he.

The key arteries of the corridor would pass through the Chahbahar port of Iran. It's very location, on the mouth of Gulf of Oman, is of great strategic significance.

Afghanistan will get an assured, effective, and a more friendly route to trade with the rest of the world.

"The arc of economic benefit from this agreement would extend beyond our three nations. Its reach could extend to the depths of the Central Asian countries," the Indian PM noted.

When linked with the International North South Transport Corridor, it would touch South Asia at one end and Europe at another. Studies show that as compared to the traditional sea routes, it could bring down the cost and time of the cargo trade to Europe by about 50%.

"Over time, we could even look to connect it with the strong sea and land based routes that India has developed with the Indian Ocean Region and South East Asia," said Modi.

Afghan President Ashraf Ghani was also present during the signing of th agreement.

After signing of agreements in Tehran, Iranian President Hassan Rouhani said, "Chabahar can become a very big symbol of co-operation between Iran and India."