Prime Minister Narendra Modi, who is on a two-day visit to Mongolia, the first ever by an Indian Premier, held wide- ranging discussions with his Mongolian counterpart Chimed Saikhanbileg, pledging to take bilateral economic partnership to a new level.

India announced a USD one billion credit line to Mongolia to support its infrastructure development.

"I am pleased to announce that India will provide a Line of Credit of USD one billion to support expansion of Mongolia's economic capacity and infrastructure," Modi said at a joint press interaction with Saikhanbileg.

The two countries upgraded their ties to a "Strategic Partnership".

"The two Prime Ministers agreed to encourage development of equal and mutually beneficial trade, investment and economic cooperation, which is balanced, sustainable, and leads to prosperity in both countries," a joint statement said after the talks between the two leaders.

"India will continue to support Mongolia's endeavour to create a business friendly foreign investment regime," it said.

During their talks, the two Prime Ministers agreed to encourage Indian companies to further explore cooperation opportunities in Mongolia's mining sector through joint ventures and investment.

Modi and Saikhanbileg also noted the intensified cooperation in civil nuclear domain, such as societal and industrial applications of radioisotopes, exploration and mining of radioactive minerals in Mongolia, and human resource development.

"Prime Minister of India welcomed Mongolia to partner in India's economic transformation and noted that Mongolia's rich mineral deposits, including radioactive minerals, could help power India's low-carbon growth, while helping Mongolia in developing indigenous capabilities and economic opportunities in the mining sector," the joint statement said.

The two sides asked the Joint Working Group established between their atomic energy establishments to explore opportunities for future collaborative actions in the spirit of mutual benefit.

"Given the immense potential to collaborate in the agriculture sector, the two Prime Ministers encouraged fostering deeper and closer cooperation in animal husbandry, production of dairy products, sharing of expertise and know-how, technology transfer and other forms of cooperation," the statement said.

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