The Prime Minister also said that future Indian projects would be in line with Myanmar's needs and priorities.
Modi, who held wide-ranging talks with State Counsellor Aung San Suu Kyi, asserted that it was important to maintain the security and stability of the land and maritime boundaries of the two countries.
Modi, in his statement, stressed on scaling up security cooperation, saying that being neighbours, the two countries have similar security concerns.
"Together both countries will ensure that terror is not allowed to take roots in our country", de-facto leader Aung San Suu Kyi said.
Modi also asserted that India stands by Myanmar amid the challenges the country is facing.
"A commission led by former United Nations secretary-general Kofi Annan has recommended economic development and social justice to counter the deadly violence between Buddhists and Muslims in the Rakhine state", she added.
"We've now committed to building a hospital in Nay Pyi Taw (Myanmar), that is a new commitment that has come out of this visit". PM Modi also assured the citizens of Myanmar that visas will be granted to all those who wish to visit India.
Rakhine state is the starting point of $484-million Kaladan multi-modal transport projects that aim to connect Myanmar to India. They also kept in touch with their roots, he said.
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The highlights of his maiden visit to India's eastern neighbour will include address to Indian diaspora in a massive indoor stadium and meeting with Myanmar leader Daw Aung San Suu Kyi.
India has additionally promised the Burmese government of it's intention to open two Industrial Training Centers to aid developmental activity in Myanmar.
■ PM Narendra Modi: We would like to contribute to Myanmar's development efforts as part of our "Sabka saath sabka vikaas" initiative.
"We have pledged to build a new India by the time independent India turns 75 in 2022", he said.
Geographically, Myanmar is the first stop for India's Act East policy.
Later on Wednesday, the Prime Minister will also visit Bagan, a heritage city where the Archaeological Survey of India is involved in restoration work of a temple and some historical structures, and Yangon where he will interact with members of the Indian community.
The consensus was reached at the talks between Myanmar President Htin Kyaw and visiting Indian Prime Minister Narendra Modi on September 5.
Modi arrived here on the second leg of his two-nation trip after he travelled to the southeastern Chinese city Xiamen where he attended the annual BRICS Summit.