Cooperation between the two countries, said the Chinese leader, cannot only boost their respective development, but also will contribute to peace, stability and prosperity in Asia and the wider world.
The prime minister, however, shook hands with heads of other states, the sources said, adding that Khan and Modi sat in different corners of the hall room.
Even as India declared yet again that Pakistan had failed to create the right conditions for a dialogue between the two countries, Pakistan PM Imran Khan reiterated his stance of a dialogue with New Delhi, saying his country hopes to spend more on human development than on purchasing arms.
But Pakistan had cleared Modi's flight to Bishkek in Kyrgyzstan to attend the Shanghai Cooperation Organisation summit beginning on Thursday.
Meanwhile, Ministry of External Affairs spokesperson Raveesh Kumar on Monday reiterated that there is no meeting scheduled between Prime Minister Narendra Modi and Pakistani Prime Minister Imran Khan at the upcoming SCO Summit.
He also called on the two sides to make good use of such mechanisms as meetings between the two countries' special representatives on the boundary issue, and enhance trust-building measures so as to preserve stability in border areas. "We expect Islamabad to take concrete action" to resume talks, Gokhale quoted the prime minister as telling President Xi.
The prime minister will have bilateral interaction with other participating leaders on the sidelines, including with Russian President Putin. He said, various subjects pertaining to India-Russia relations were discussed during the meeting. Kyrgyz President Sooronbay Jeenbekov, who will chair the CHS meeting, had extended the invitation to the prime minister to attend the two-day summit. This is Mr Modi's first multi-lateral summit after his re-election as the Prime Minister.
The leaders of SCO member and observer states, as well as representatives of important global organisations, will attend the meeting. The SCO is a China-led eight-member economic and security bloc.
In 2017, India and Pakistan became full members of the SCO.