Abe also offered Japanese bullet train technology with financing and operational support, for which Modi thanked him. The feasibility study for the Mumbai-Ahmedabad route is still on.
Japan also promised to remove six of India’s space and defence-related entities from Japan's Foreign End User List.
Earlier Modi delighted his Japanese hosts with an apparent swipe at China.
Modi, addressing Japanese industrialists, said that expansionism would never lead to progress in the modern world, and referred to encroachment and capture of others' territory, a possible allusion to China's claim on the Japanese-controlled Senkaku islands.
Japan's relations with China, never cordial, have steadily worsened under PM Shinzo Abe, and the Japanese are trying to build ties with India to counter their traditional rivals.
"If you look all around you, we see the expansionism of the 18th century," Modi said. "In the 21st century, if Asia is to lead the world, India and Japan should together raise the prestige of the path of development."
Modi also promised to set up a special management team for facilitating business with Japan directly under the Prime Minister's Office, even offering to include two nominees of Japanese business.