After welcoming the Chinese president and his wife with bouquets, Modi took Xi around a pictorial gallery featuring Modi's hometown Vadnagar, and explained its Buddhist links to the visiting leader.
Seventh century Chinese traveller Hiuen Tsang had visited Vadnagar during his 15-year stay in India.
The two sides then held brief talks after which three agreements were concluded related to the region, including on setting up a Chinese industrial park.
With the official engagement of the day over, Modi played the perfect host as he took Xi on a conducted tour around Sabarmati Ashram and explained the significance of the place that was set up by Mahatma Gandhi June 17, 1917, on the banks of the Sabarmati river.