In another sign of closer relations, India and Japan are also set to hold their first joint military exercises involving ground forces, starting next month.
During Modi's summit with Abe on Sunday, New Delhi and Tokyo will review the progress in ties and seek to deepen the strategic dimensions of the bilateral relationship.
At the same time, Abe hoped that Prime Minister Modi will enjoy the lovely autumn in Japan, including the snow-capped Mout Fuji and autumn-tinted leaves, besides experiencing Japanese cutting-edge technology.
"From bullet train to smart cities, Japan is contributing in all the new India infrastructure that is being built", he said.
Besides bilateral issues, the two leaders are expected to deliberate on a range of regional and global issues including the situation in the Indo-Pacific region. Japan is India's most trusted partner in its economic and technological modernisation, he said.
Modi was given a guard of honour upon his arrival for the annual summit talks at the Kantei, the Prime Minister's Official Residence.
After the luncheon, they would visit a factory of industrial robot manufacturer Fanuc Corp, before moving on to the Japanese premier's vacation home nearby.
The prime minister's visit will reaffirm the traditional bonds of friendship between the two countries and strengthen their multi-faceted cooperation in diverse fields.
"India is going through a massive transformative phase today".
Angela Merkel to give up party leadership after poll setback
Nahles' comments show the SPD will put more pressure on the conservatives to deliver policy results for the center-left party. The chancellor threw her weight behind her friend in Hesse and visited him four times on the campaign trail in recent weeks.
While delivering his speech in Japan, a country known for its high-technology products, Prime Minister Narendra Modi spoke about the "Make in India" campaign which has been initiated to boost manufacturing in India.
PM Modi also met several Japanese venture capitalists and attended the business leaders forum on Monday.
The agenda is likely to be packed as the leaders of India and Japan have much to discuss.
"We celebrate Sardar Patel's birth anniversary every year, but this time we will grab the attention of the entire world".
Japan-India cooperation continued to expand broadly in many fields such as security, investment, information technology, agriculture, health, environment and tourism, Abe noted.
Describing Japan as the confluence of the best aspects of eastern and western civilisations, PM Modi said that the country has taught that the path to the development of mankind is not a conflict between the ancient and the new, but its co-existence and creation.
Following Prime Minister Kishi's visit to India in 1957, yen loans to the country began in 1958.
The Japanese PM said on Twitter that the opportunity allowed him to talk frankly about India-Japan relations in a relaxed atmosphere.