"The agreement for cooperation on peaceful uses of nuclear energy marks a historic step in our engagement to build a clean energy partnership," Modi said after the agreement was signed.
India and Japan on Friday signed the landmark civil nuclear agreement following the annual bilateral summit led by Prime Ministers Narendra Modi and his Japanese counterpart Shinzo Abe here.
The present agreement will open up the door for collaboration between Indian and Japanese industries in India's civil nuclear programme.
Also read: India and Japan sign civil nuclear deal
"We see Japan as a natural partner in our aim to be a major centre for manufacture and investments and 21st century knowledge industries. Our strategic partnership is not only for the good and security of our own societies. It also brings peace, stability and balance to region," Modi said.
The Prime Minister said the success of the joint military exercise Malabar 2016 in June by India, Japan and the US "underscored the strategic convergence in the broad expanse of the waters of the Indo-Pacific region".
"We are also united in our resolve to combat the menace of terrorism, especially cross-border terrorism," he added.