Bolivia has secured the largest pledge of foreign investment in its history, after the country signed a $2.1bn deal with Jindal Steel and Power, an Indian steel company, to exploit a huge iron ore deposit.

The agreement marks the first big investment by an Indian company in South America, a region whose mineral, oil and gas deposits have attracted interest from Chinese and Russian companies in recent years. It is hoped that the deal, signed on Wednesday night, could lead to other Indian investment in the region.