Three MoUs were also inked, in the field of space, culture, the International Solar Alliance and RuPay card.
PM Modi, who arrived here earlier in the day, in the first prime ministerial visit from India, was received at the airport by Prince Khalifa in a special gesture.
"Intensifying the vibrant bilateral relations PM @narendramodi met with HH Prince Khalifa Bin Salman Al Khalifa, the Prime Minister of Bahrain. Both leaders expressed their commitment to give a boost to the entire spectrum of bilateral relations," tweeted Raveesh Kumar, spokesperson of the Ministry of External Affairs.
"Expanding our bilateral partnership, PM @narendramodi & HH Prince Khalifa Bin Salman Al Khalifa witnessed exchange of MoUs in areas of culture, space, collaboration with ISA & Rupay Card," he posted.
Earlier, he wrote "A 'pearl' in our extended neighborhood. PM @narendramodi extended a ceremonial welcome at Al Gudaibiya Palace in #Manama in the presence of Prime Minister HH Prince Khalifa Bin Salman Al Khalifa."
The three MoUs were on: Statement of Intent on collaboration between Indian Space Research Organisation and National Space Science Agency in the area of Space Technology; Statement of Intent on collaboration of the Kingdom of Bahrain with International Solar Alliance (ISA); Cultural Exchange Programme between India and Bahrain.
( With inputs from IANS )