During his two-day visit to Bahrain, the first by an Indian prime minister, that concluded on Sunday, Modi held bilateral meetings with King Hamad bin Isa Al Khalifa and prince and Prime Minister Khalifa bin Salman Al Khalifa.
The two sides exchanged views on bilateral, regional and multilateral issues of mutual interest during the meetings, according to a joint statement.
"Both sides called on all states to reject the use of terrorism against other countries; dismantle terrorism infrastructures where they happen to exist and to cut off any kind of support and financing to the terrorists perpetrating terrorism from all territories against other states; and bring perpetrators of acts of terrorism to justice," the statement said without referring to any country.
India has been pressing Pakistan to end its state policy of backing cross-border terrorism and its support to terror groups on its soil.
India and Bahrain also discussed ways and means to further promote cooperation in cyber security, including prevention of use of cyber space for terrorism, radicalisation and for disturbing social harmony.
The two sides agreed to further enhance cooperation in the field of security, counter-terrorism and the exchange of intelligence and information, it said.
The leaders also noted the "need for concerted action by the international community against terrorism" and "underlined the importance of comprehensive sanctioning of terrorists and their organisations by the UN".
They also said that regional connectivity projects should be based on international law, including respect for sovereignty and territorial integrity of states, in an apparent reference to China's push for its Belt and Road Initiative (BRI).
During the meetings, the two sides also noted the increasing trend of bilateral trade and existing potential for two-way investments and reaffirmed their desire to provide favourable environments for trade and investments.
The two countries agreed to focus on enhancing cooperation in energy, covering the areas of joint exploration and training of human resources.
The two leaders agreed to enhance cooperation to strengthen maritime security in the Gulf region, vital for the security and safety of sea lanes.
The two sides underlined the importance of enhancing high-level political exchanges, defence and higher education cooperation, trade and economic relations and people-to-people linkages.
The leaders also noted the increasing trend of bilateral trade and existing potential for two-way investments and reaffirmed their desire to provide favourable environments for trade and investments.
India also welcomed the interest of Bahrain to join the International Solar alliance (ISA), recognising the importance of it as international intergovernmental organisation, which has become an effective platform to facilitate the deployment of solar energy.
Both the sides also emphasised on the urgent need to pursue UN reforms, including the Security Council through an expansion of both categories of its membership, to make it more representative and effective in tackling global challenges.
The two countries also signed MoUs on cultural exchange programme, space technology, solar energy, the statement said.
An MoU was also signed between BENEFIT, a Bahrain company handling ATM and POS transactions among others, and National Payments Corporation of India (NPCI) for launch of RuPay card in the Gulf Kingdom, it said.
During the official meetings, the two sides also underlined their close bilateral ties, deep-rooted in shared history and cultural affinities, sustained and nourished through growing economic linkages and close people-to-people contacts.