India is "gravely concerned" over reports suggesting the use of military force against Iran and is strongly against any such action, the foreign ministry said on Monday.

There has been concern an attack against Iran could be imminent after it emerged Israel had practised a strike against Iranian nuclear facilities.

"India is gravely concerned at these statements threatening the use of military force against Iran," the foreign ministry said in a statement.

"India is against any such military attack, which constitutes unacceptable international behaviour. There is no military solution to the issues that are being discussed between Iran and the international community."

India's comments come after Iran intensified international tensions on the nuclear issue by conducting two days of tests, which included the firing of a missile that it says can reach Israel.

The United States and its regional ally Israel have never ruled out a military attack to end Iran's controversial nuclear work, which the West fears could be used to make weapons -- a charge vehemently denied by Tehran.

Energy-hungry India, which enjoys warm relations with Iran, expects to finalise a deal on a 7.5-billion-dollar pipeline that will transport gas from the Middle East to here via Pakistan.

New Delhi says Tehran has the right to peaceful use of nuclear energy but has asked it to cooperate with the United Nations nuclear watchdog.

India has previously rejected pressure from Washington not to do business with Iran, viewed in the US as a state sponsor of terrorism and seen as bent on acquiring nuclear weapons.

Earlier this year, New Delhi told the US not to interfere in its dealings with Iran after a State Department spokesman said Washington would like India to put pressure on Tehran over its nuclear programme.

"India calls upon all concerned Governments to exercise restraint and choose the peaceful path of persuasion and negotiations," the foreign ministry said.