On Monday, Saudi Arabia ordered the release of about 2,100 Pakistani prisoners from its jails, according to Pakistan's information minister.
India rolled out the red carpet for the crown prince as it seeks diplomatic support against Pakistan following a militant attack in the disputed region of Kashmir.
"Today, we expect the opportunities we are targeting in India in various fields to exceed $100 billion [Dh3.67bn] in the coming two years... we want to work with you, Mr Prime Minister, to ensure these investments are made and to ensure useful returns for both countries", Prince Mohammed said. But India accuses Pakistan of harboring its leaders.
Modi welcomed the announcement by Prince Mohammed to invest in the areas of energy, refining, petrochemicals, infrastructure, agriculture, minerals and mining, manufacturing, education and health potentially worth in excess of $100 billion.
Saudi Minister of state for foreign affairs Adel al-Jubeir in an interview with India Today TV said: "We have said there are United Nations resolutions with regard to Kashmir that Saudi Arabia supports".
Prince Mohammed, who arrived in the capital on Tuesday for his two-day first state visit to India, was earlier in the day accorded a ceremonial reception at the Rashtrapati Bhavan.More news: Cutting off Pakistan's water will be biggest Indian mistake: FM Qureshi
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Organised in partnership between SAGIA and the Saudi Center for Strategic International Partnerships (SCISP) with the Confederation of Indian Industry (CII), the event brought together more than 400 high-ranking government officials and business leaders from both countries to foster future collaborations, building on the deeprooted bilateral ties between Saudi Arabia and India.
He said Saudi Aramco continues to stay invested in the project, agreements for which were signed past year.
Prince Mohammed said Saudi Arabia has invested almost $44 billion dollars in India since Modi´s visit to his country in 2016.
The crown prince also said he wanted to expand commercial relations with India.
Saudi Arabia is the 15th largest market in the world for Indian exports and is destination to 1.85 per cent (2017-18) of India's global exports. However, the language backing these deals in the joint statement warrants caution, with the word "potentially" preceding most figures being announced.