"We have ended regulatory uncertainty to a large extent, creating a policy driven state," Modi said, while meeting the corporate honchos of Malaysia.
"I assure you that India wants to progress. You have the experience and expertise. We have the requirement. It is a perfect match," he said.
Modi added that India was now the fastest growing economy in the world, and with a stable polity offered ample scope for investment.
External affairs ministry spokesperson Vikas Swarup tweeted: "Always time for business! Modi meets leaders of Corporate Malaysia for strengthening commercial ties."
Earlier, India and Malaysia signed three agreements on cyber security, cultural exchange and infrastructure development, on the third day of Modi's visit.
The Prime Minister's Office: "Stronger economic ties and more investment are key focus areas."