The two countries signed several pacts, including one to prevent arms smuggling across their 1,650-km (1,000-mile) border, after Myanmar's Senior General Than Shwe met Indian leaders, including Prime Minister Manmohan Singh, officials said.
A joint statement said New Delhi will provide $60 million in grant to build a road connecting Myanmar with the Indian state of Mizoram and $10 million to help boost agriculture.
New Delhi has also pledged support in the power sector where it is providing $64 million in a line of credit to build transmission lines. The two are cooperating in telecoms as well.
India's EXIM bank will also extend a $60 million line of credit to Myanmar for financing railway projects.
One of the first countries to condemn Myanmar for its repression of pro-democracy activists, New Delhi has since the early 1990s put aside such criticism for fear of pushing its neighbor into China's fold and losing access to its oil and gas.
New Delhi also looks to Myanmar to help curb separatist insurgencies in its northeast region, whose rebels sometimes take refuge across the frontier. Both sides are also working together to control a flourishing cross-border narcotics trade.
"India's national interest lies in a strong and stable Myanmar that observes strict neutrality between India and China and cooperates with India in the common fight against the insurgencies raging in the border areas of both the countries," said Gurmeet Kanwal, director of Center for Land Warfare Studies.
Myanmar, earlier known as Burma, is facing mounting global condemnation over its decision to bar democracy leader Aung San Suu Kyi and other current or former political prisoners from participating in elections the junta says it wants to hold later this year.
Than Shwe's 5-day visit to the world's biggest democracy could help legitimise Myanmar's planned elections at a time when it has few friends in the world, though India is unlikely to directly recognize it, analysts said.
But the visit has already met with protests from pro-democracy groups in India. Suu Kyi, whose mother was Myanmar's ambassador to India in the 1960s, has devoted admirers in New Delhi, where she went to school and university.
