The announcement was made as the junta's senior general Than Shwe met Indian leaders including Prime Minister Manmohan Singh.
The visit comes as New Delhi competes with China to assert influence in the region.
Indian and Burmese officials signed agreements to combat the smuggling of weapons and drugs and for cooperation in science, technology and telecommunications.
A joint statement says New Delhi will provide $US60 million to build a road from Burma to the Indian state of Mizoram.
India's EXIM bank will also extend a $60 million line of credit to finance railway projects.
![Burma's military ruler General Than Shwe (R) and Indian Prime Minister Manmohan Singh arrive for talks in New Delhi. [AFP] Burma's military ruler General Than Shwe (R) and Indian Prime Minister Manmohan Singh arrive for talks in New Delhi. [AFP]](http://www.abc.net.au/reslib/201007/r608643_4006646.jpg)