"Bangladesh is critical for our success," Pankaj Saran said on Monday at the India's 66th Republic Day reception in Dhaka.
He said after Modi assumed the office of prime minister, transformation in India began on a scale that had "rarely been seen in human history".
"India invites its neighbours to be part of its transformation".
He said their relations with Bangladesh had "expanded steadily and the potential for further growth is immense".
"We wish to see a strong, prosperous, stable and peaceful Bangladesh".
Speaking at the reception as chief guest Foreign Minister Abul Hassan Mahmood Ali said Bangladesh also attached "the highest importance to its relationship with India, which is based on multitude of commonalities".
He said Bangladesh was venturing into "newer areas of cooperation with India".
"As a result, we have seen the relationship assume an unprecedented width and depth," he said.
The Republic Day reception at the Radisson Blu Water Garden Hotel witnessed a gathering of people from all strata including ministers, politicians from the ruling Awami League, BNP, and Jatiya Party, businessmen, military officers, celebrities and journalists.
The High Commissioner said India was "committed" to developing its partnership with Bangladesh "in all fields with all sections of society and within and beyond government".
"We aim to develop mutual prosperity and mutual security," he said.
The foreign minister said Bangladesh was observing with "keen interest and admiration the great developmental strides that India has made since its independence".
"We deeply appreciate the initiatives being undertaken by the new Indian leadership for the uplift of the lives of the poor," he said.
Referring to the last six years’ engagements, he said, "Our two countries are becoming increasingly interlinked through cooperation in almost all conceivable sectors".
He also mentioned the recent exchange visits took place in less than a year of the new government’s assumption of office in New Delhi and said, that "speak of the upward trajectory of the relationship between the two countries".
"This year also promises to be equally engaging".
India became a Republic on this day three years after its independence from Britain in 1947.