Ulan Bator, May 17: Mongolia is an integral part of India's Act East policy, Prime Minister Narendra Modi said here on Sunday and also announced a $1-bn Line of Credit to Mongolia for infrastructure projects.
Modi, speaking after delegation-level talks with Prime Minister Chimed Saikhanbileg, said both sides have also agreed to elevate their bilateral ties to a strategic partnership.
Modi said both countries also closely linked with the future of the Asia-Pacific region.
"We can work together to advance peace, stability and prosperity in the region," Modi said.
"You have called us your third neighbour and spiritual neighbour; we will always fulfil the responsibility that comes with this honour," he said.