India and Afghanistan on Tuesday signed a major strategic cooperation pact aimed at boosting cooperation in security field and many other areas between the two countries.

Indian Prime Minister Manmohan Singh and visiting Afghan President Hamid Karzai inked the agreement after holding talks here.

"The agreement creates an institutional framework for our future cooperation in the fields of political and security cooperation, trade and economic cooperation, capacity building and education, and social, cultural, civil society and people-to- people relations," Singh said at a joint press conference with Karzai.

The two countries also agreed to promote economic relations, especially in mining and hydrocarbon sectors.

"We both agree that Afghanistan's economic integration with the Indian economy and South Asia as a whole is in the national interest of the people of Afghanistan, and one of the ways to achieve this is to promote closer trade, investment and transit links," said Singh.

On security issues, Singh said, "Terrorism threatens our entire region, and no country can remain immune to its lethal effects."

"The people of Afghanistan have suffered enough. They deserve to live in peace and decide their future themselves, without outside interference, coercion and intimidation," he said.

Singh also said India will participate in the forthcoming conferences in Istanbul and Bonn to contribute to international and regional initiatives to support Afghan efforts at nation building.

"India stands by the people of Afghanistan in their journey towards capacity building, reconstruction, development and peace. We will do all that is within our means to help Afghanistan," he said.

Karzai arrived here Tuesday for a two-day official visit.