The measure aims to provide security assistance to Ukraine, Israel and Taiwan over bitter objections from party hardliners
Modi received Sharif at the stately Hyderabad House with warmth, clasping his hands for a few moments as the two leaders posed for photographs.
Ahead of the meeting, Sharif said at the Jama Masjid in Old Delhi that he had come to India to "build better ties".
Sharif and other leaders of SAARC nations as well as Mauritius attended Modi's swearing in ceremony at Rashtrapati Bhavan Monday evening.