“New impetus to a multifarious relationship,” External Affairs Ministry spokesperson Gopal Baglay tweeted with a picture of the two leaders at the venue.
Earlier, President Pranab Mukherjee and Modi received Erdogan at the forecourt of Rashtrapati Bhavan where he was accorded a ceremonial guard of honour.
Later, Erdogan paid tributes to Mahatma Gandhi at Rajghat.
External Affairs Minister Sushma Swaraj called on the Turkish President and discussed issues of bilateral interest.
Modi and Erdogan then addressed a business summit organised by industry bodies CII, Ficci and Assocham in which both leaders called for boosting India-Turkey trade and economic ties.
On Monday evening, President Mukherjee will host a banquet in honour of Erdogan.
Erdogan arrived here on Sunday on a two-day visit to India. He last visited India in 2008 when he was the Prime Minister.