During his two-day visit to the city, President Rouhani, who is accompanied by a 21-member delegation, will also meet people of Iranian-origin living in Hyderabad.
India and Iran will be hoping to iron out several issues particularly the slow progress on the Chabahar Port which Iran feels has got stuck due to USA pressure on countries and the latest set of sanctions on Iran.
Iran's president, on Thursday and before leaving Tehran for New Delhi, said that during his stay in India he and his accompanying team will discuss with the Indian officials ways to enhance bilateral relations in an array of fields.
Irani President Hassan Rohuani, who is set to arrive in India for a two-day visit will make his first pit stop in Hyderabad.
He noted the visit is made at the official invitation of the Indian Prime Minster Narendra Modi.
Chabahar Port is located just 70 Km's away from Gawdar Port in Pakistan, which has heavy investments from China.
The Iranian President was formally received by Telangana and AP Governor E S L Narasimhan, Union Minister of State for Power R K Singh, Telangana Deputy Chief Minister Mohammad Mahmood Ali and top police and civil officials besides officials from the Iranian Consulate.
India is already routing a consignment of 1.1 million tonnes of wheat to Afghanistan through Chabahar port.
The Iranian president also said Iran and India have similar concerns about the latest regional developments including terrorism. India imports oil and gas from Iran, but negotiations have been pending on the Farzad-B gas and oil fields in Iran's southern area, which India has expressed interest in.
Iran is India's third oil supplier.