A new regional election will be held in Catalonia on December 21.
The main opposition said on Friday they would back special measures to impose central rule on the region to thwart the secessionist-minded Catalan government.
The Catalan government accused Madrid of taking “political prisoners” and thousands of protesters gathered along Barcelona’s Diagonal Avenue to call for their release.
Spain’s Rajoy would probably call a snap regional election after activating Article 155 of the constitution that would allow him to sack the Catalan regional government.
The agreements were signed after Prime Minister Modi held wide-ranging talks with Spanish Prime Minister Mariano Rajoy in the Spanish capital.