New Delhi, Feb 28 (IANS): India and Iran must work together to deepen their strong bilateral economic relationship, said President Pranab Mukherjee.

"India and Iran have a strong bilateral economic relationship and it needs to further deepen for the benefit of people of both the countries," said Mukherjee here while welcoming a delegation led by Ali Ardeshir Larijani, speaker of the Iranian assembly Wednesday.

"We must work together to promote trade and economic links and increased people-to-people contacts between us and within the region," he said.

The president added that the "excellent" bilateral relations between both the countries have been strengthened through high level exchanges and regular engagement through various dialogue mechanisms.

Iran remains an important source of crude for India and Indian markets are open to Iranian exports. India hopes that Iran would source more goods from the country, he said.

The responsibility of addressing the challenges like terrorism, energy security, food security, climate change, environment and natural disasters are on the shoulders of both the countries, Mukherjee said.

"Peace and stability in Afghanistan is a key to the progress in the region," said the president, adding that he was happy that India and Iran were engaged in regular exchange of information and views on the developments in Afghanistan.