"The Asiatic lion can now be found only in Gujarat, but Asia's economic lion is here in Singapore," Modi said in his address on the second day of his bilateral visit to this southeast Asian city state.
He also hailed the bilateral relations between India and Singapore.
"Singapore is a major partner in almost every area of India's transformation," he said.
India and Singapore on Tuesday signed a joined declaration on strategic partnership and nine accords cutting across various sectors following talks between Modi and Lee.
After the signing of the documents, external affairs ministry spokesperson Vikas Swarup tweeted that the two prime ministers noted the importance of culture between the two countries and encouraged more exhibitions, exchanges and interactions.
Modi and Lee noted their shared interest in furthering cooperation in the areas of science and technology, particularly in space, biomedicine and ayurveda, the spokesperson added.
The two prime ministers also released two postal stamps showing Rashtrapati Bhavan and Istana, the Singaporean presidential palace, to mark 50 years of diplomatic relations between the two countries.
Earlier on Tuesday, Modi was accorded a ceremonial welcome at Istana following which he met Singapore President Tony Tan Keng Yam and Emeritus Senior Minister Goh Chok Tong.
Modi arrived in Singapore from Malaysia on Monday in the second and last leg of his four-day visit to southeast Asia.