"India is an enormous country and it offers many opportunities to Spanish firms in all sectors", he said in Hindi as he arrived at Spanish Prime Minister Mariano Rajoy's official residence in Madrid for talks.
"Hola Espana! Prime Minister Modi arrives in Madrid, first visit by an Indian Prime Minister in almost three decades, is received by Spanish FM in a special gesture", tweeted Gopal Baglay, Spokesperson, Ministry of External Affairs (MEA).
"We should also increase cooperation in the strategic field in areas such as cyber security, maritime cooperation and defense", he said.
Spain, the summer holiday destination of Europe, in a recent government report said that the Islamic State group "has been publishing in Spanish, which means an increase in the risk of its influence on radicals living in our country".
"India-Spain ties are all set to grow and this will benefit the people of both our nations" he said in another tweet.
Prime Minister Modi is scheduled to join several programmes.
At the beginning of their restricted meeting, Modi told Putin he was happy to be able to visit his hometown as Prime Minister.
The next day, he will attend, for the first time, the St Petersburg International Economic Forum, a business event.
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Two former intelligence officials and a source in Congress confirmed the information. The names of the Trump campaign members were masked in the intelligence report.
After the summit, Putin will host Modi at a private dinner without any aides.
Modi also signed the visitor's book at the memorial.
That process has accelerated in recent years as New Delhi has orbited closer to Washington, and Russian Federation has fostered relationships with India's chief regional rivals Pakistan and China. He said, both the countries have witnessed the menace of terrorism.
"I would like to thank you specially for visiting Piskariovskoye", he said. "We are committed to building on this legacy and bequeathing to our youth a strong and vibrant partnership that will contribute to changing the world for the better", Modi said.
They called upon North Korea and all relevant parties to take early and effective steps to realise denuclearisation of the Korean Peninsula, the statement said. Modi and Rajoy last met on the sidelines of the G20 Summit in Turkey in November 2015.
President Vladimir Putin asserted on Thursday that Russia's "trust-based" relations with India - which he described as one of its "closest friends" - will not be diluted by Moscow's growing ties with Pakistan and other countries.
From Russia, Modi will leave for France on the fourth and final leg of his tour and hold his first meeting with newly elected French President Emmanuel Macron in Paris.