Indian foreign secretary, Shiv Shankar Menon, says New Delhi believes that engaging Iran is far more productive than isolating the country.

"From our point of view, the more engagement is at work, the more Iran becomes a factor of stability in the region," Menon told reporters after meeting with President Ahmadinejad who arrived in New Delhi on Tuesday on the last leg of his trip to Pakistan, Sri Lanka and India, AP reported.

President Ahmadinejad also held talks with the Indian Prime Minister Manmohan Singh and President Pratibha Patil during his five-hour visit to New Delhi.

Despite a strong US opposition, the $7 billion gas pipeline project that would transfer Iran's natural gas to Pakistan and India topped the agenda of the high profile talks.

Apart from the pipeline, the two sides agreed to try to triple trade ties to reach a $10 billion annually; however, they did not set a timeframe.

They also discussed the situation in Iraq and elsewhere in the Middle East.

India also voiced support for Iran's right to peaceful nuclear technology through cooperation with the UN nuclear watchdog.

The Indian foreign secretary said President Ahmadinejad and the Indian Prime Minister Manmohan Singh had a "short discussion on" the nuclear issue.

"We have said that Iran has the right to peaceful use of nuclear energy while fulfilling its various obligations, and that the right way to do that is through the IAEA to assure the world that it is fulfilling her obligations," Menon explained.

MGH/PA