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In a joint statement, the two leaders said they would begin regular talks between their foreign and defense ministers and committed to extending cooperation in areas ranging from agriculture and digital technology to investment in Indian rail projects and infrastructure.

Japan and India agreed Monday (Oct 29) to upgrade diplomatic and military ties, with Tokyo also offering low-interest loans as the two countries seek closer ties to balance China's weight in the region.

Modi has called for regional unity against protectionism.

Condemning in the strongest terms the growing threat of terrorism and its universal reach, the two leaders expressed their desire to strengthen cooperation against terrorist threats from groups including Al-Qaida, ISIS, Jaish-e-Mohammad, Lakshar-e-Tayyiba, and their affiliates.

"The two leaders reaffirmed their shared commitment to the total elimination of nuclear weapons and remained resolute in the task of strengthening worldwide cooperation to address the challenges of nuclear proliferation and nuclear terrorism", the statement said.

The two leaders also discussed a range of bilateral, regional and global issues, including the situation in the Indo-Pacific region.

The agenda is likely to be packed as the leaders of India and Japan have much to discuss.

By 2022, India's digital economy is expected to grow to United States dollars 1 trillion and lead to creation of 10 million jobs, according to consulting firm EY. PM Modi said he is confident that this visit will add new vigour to the strong friendship between India and Japan.

He said that the decision to establish a currency swap mechanism between the two nations reflects the growing closeness between India and Japan on mutual trust and economic cooperation. He arrived Saturday and was invited to Abe's vacation house near Mount Fuji on Sunday for private talks. Modi appreciated Japan's role in promoting connectivity through quality infrastructure projects such as the Western Dedicated Freight Corridor and the Delhi-Mumbai Industrial Corridor.

PM Modi also lauded the Indian diaspora for introducing Kabbadi and Cricket in Japan where martial art is very popular.

The Japanese PM said on Twitter that the opportunity allowed him to talk frankly about India-Japan relations in a relaxed atmosphere. "After India's full accession to three worldwide export control regimes, the two leaders pledged to continue working together for India's membership of the Nuclear Suppliers Group, with the aim of strengthening the global non-proliferation efforts", the statement added.