Afghan President Hamid Karzai held talks with Indian Prime Minister Manmohan Singh in New Delhi on Monday, appealing for increased investment in his war-torn country.
In October last year India and Afghanistan signed a "strategic partnership" aimed at deepening security and economic links, with Karzai keen to elevate India's involvement further.
At a weekend meeting with business leaders in Mumbai, he promised a "red carpet" welcome for Indian investment as US-led coalition forces prepare to withdraw.
"Indian businesses need not be shy while thinking about Afghanistan," he said. "Chinese businesses were there long before you came, five or six years ago.
"If you don't arrive on the red carpet, it will get dusty. Therefore, do hurry up in coming and take advantage of the opportunities in Afghanistan."
Karzai met Singh Monday morning and the two leaders were to hold a press conference later in the day.
India has not contributed to the international forces deployed in Afghanistan, but has worked on low-key troop and police training as well as infrastructure development.
The US was previously wary of India's presence in case it led to a "proxy war" with Pakistan on Afghan territory, though US Defense Secretary Leon Panetta encouraged India to play a more active role while visiting New Delhi in June.
At a meeting soon afterwards to promote trade with Afghanistan, then-Indian foreign minister S.M. Krishna said potential business interests must overcome "the anxiety of withdrawal, uncertainty, instability and foreign interference".
Last year a consortium of Indian companies won the right to develop Afghanistan's largest iron ore deposits, underscoring growing ties between the two countries.
Afghanistan is believed to have mineral reserves worth at least $3 trillion which could generate billions of dollars in tax revenue.
Karzai, who has been in power since 2001 and is due to stand down in 2014, is expected to sign fresh mining deals in New Delhi, as well as pacts on youth affairs, development and fertiliser trade.
The Indian Express said Monday that Prime Minister Singh would announce a new $100 million package of development projects, and the newspaper called for more training of Afghan forces.
"Short of sending combat troops into Afghanistan, India must offer all the military assistance it can to beef up Kabul's capacity to defend itself," it said.
"Further hesitation on Delhi's part can only undermine India's ability to secure its long-term interests... and its reputation as a credible regional power."