External Affairs Minister Sushma Swaraj, responding to a question on the extradition of liquor baron Vijay Mallya, said Prime Minister Narendra Modi told British PM Theresa May that United Kingdom courts asking about the condition of Indian jails is not right.
Iran is also a key energy supplier to Asia's third largest economy.
This is just the latest financial hit India has suffered since 2005 when New Delhi, under USA persuasion, voted against Iran in the International Atomic Energy Agency's governing board, prompting Tehran to cancel a long-term LNG deal favourable to India. Begging for a waiver is the worst possible choice India can pursue, because it will come with conditions that crimp New Delhi's latitude further.
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"We don't make our foreign policy under pressure from other countries", she told a news conference. Iran has now developed insurance instruments of its own for its oil exporting tankers and also built a small fleet of such tankers, so that some of the tactics the Obama administration tried to marginalize Iran are now more easily overcome.
The US Treasury designated three Iranian entities and six individuals on Wednesday for committing human rights abuses and censorship, in what is the sixth round of sanctions since President Donald Trump left the nuclear deal on May 8.
On Prime Minister Modi holding informal summits with China and Russian Federation, she said, informal summits are new dialogue mechanism by India to strengthen and further deepen bilateral relations.
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Bilateral trade between India and Iran amounted to $12.9 billion in 2016-17. Indian interests in the Iran nuclear deal revolve around possible U.S. sanctions that would once again slow down the development of the Chabahar port.
During Rouhani's visit, both sides signed nine agreements including one on handing over Chabahar port's operation to India for 18 months.
According to a statement released by India's External Affairs Ministry, during the meeting, Iranian and Indian foreign ministers discussed bilateral, regional and worldwide issues of mutual interest.
"Jab seema par janaze uth rahe hon, to baatcheet ki awaaz acchi nahi lagti (when there are funeral processions taking place on the border, talk of dialogue is not appropriate)", Swaraj said.
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The territory is covered by a ceasefire agreement signed previous year between the US, Russia and neighbouring Jordan. Jordan has always been anxious about the presence of Iranian-backed militias along its border, as has Israel .